Mounting debt levels, and greater government involvement in the Tanzanian aviation sector has been the main hindrance for Air Tanzania to transform its business, including the access to a restructuring process, according to Air Tanzania CEO and Managing Director Ladislaus Matindi speaking at the delivery of a new Dash 8-Q400.
“This kind of structure does not allow us to make certain business decisions such as increasing our fleet.” The CEO also noted that Air Tanzania is faced with another big challenge of a pile of inherited debts “which means most of the earnings end up in servicing the debts.”
The airline has drawn up a business plan expected to steer it through the turbulence with the arrival of a Dash 8-Q400 plane enabling the company operate five short range planes, two medium range and two planes for long range routes.
“It is this plan that determines the kind planes that we have, so this kind of plane which we have received today will facilitate our local trips,” explained the CEO.
United Republic of Tanzania, represented by the Tanzanian Government Flight Agency (TGFA), signed a firm order of a Dash 8-400 aircraft in October 2019, that is leased and will be operated by Air Tanzania (The Wings of Kilimanjaro). The aircraft joins four that are already in service to increase the airline’s fleet of Dash 8-400 aircraft to five.
The plane features 78 seats and was spotted in Canada as far back in December 2020. An incident in 2019 saw Air Tanzania’s fourth De Havilland Dash 8-400 seized in Canada before its delivery flight to the carrier’s base.
But with airlines being forced to borrow heavily to cope with the staggering rates of daily cash burn during the pandemic that closed borders, withered revenues and grounded aircraft, the ATCL CEO also believes the COVID-19 pandemic is a challenge that requires new strategies to emerge strong in the near future as more travellers are currently being vaccinated.
So far the Tanzanian government has purchased eight aircraft for ATCL in an effort to revive the airline, including five Bombardier Dash 8 Q-400, two Boeing 787-800 Dreamliners and two Airbus A220-300s
Air Tanzania was established as Air Tanzania Corporation (ATC) in September in 1977 after the collapse of the regional East African Airways. In 2002, the flag carrier was privatized through a partnership with South African Airways which purchased a 49% stake but the relationship lasted only 4 years with the Air Tanzania becoming wholly owned by the government again from 2006
Photo: courtesy planespotters.net by @ sierra mike
By Victor Shalton Odhiambo
