(Seychelles News Agency) - Air Seychelles will be headed by a Seychellois national as of July 1, part of the changes that accompany a transitional agreement between former majority owner Etihad Airways and the government of the island nation, the Ministry of Transport said on Monday.

Sandy Benoiton will succeed Remco Althuis, who had been appointed as the chief executive of Seychelles' national airline in September 2018.

Benoiton who is currently the airline's chief operations officer until June 30, has been with Air Seychelles for more than two decades.

The director of policy and strategy at the transport ministry, Magalie Essack, said that in this phase of negotiations with Etihad Airways, there is a transitional agreement that has been signed in regards to the chief executive and the chief financial officer.

"It states that the mandate of the CEO and the CFO employed by Etihad Airways will end on June 30, 2021. With the appointment of the new board, members are expected to undertake an exercise to relook at how a new CEO and CFO will be appointed," said Essack.

The Ministry of Transport said that Etihad's management contract has also been terminated, but that Althuis will remain as the CEO until June 30.

Also appointed is Tyrian Gendron as the new chief financial officer. He replaces Michael Berlouis as of July 1.

In April, the Etihad aviation group sold its 40 percent holding in Air Seychelles to the government and will no longer be a shareholder in the now state-owned airline. Seychelles received a 79 percent discount on the total liability that Air Seychelles owes Etihad."

Air Seychelles had owed $72.3 million to Etihad; with the 79 percent write-down, Seychelles will pay $11.34 million. A total of $71.5 million is still owed to bondholders.

Air Seychelles, the national airline of Seychelles, an archipelago in the western Indian Ocean, was established in 1978 and began long-haul service in 1983.