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View Full Version : Air Tanzania to Acquire 5 airbus A320


Davis732
24th Jul 2007, 17:18
Tanzania’s ailing national airline plans to acquire Airbus planes
Jul 17, 07 | 9:26 am


By Apolinari Tairo
Tanzania's ailing national airline is now looking at Airbus planes to boost its services.
DAR ES SALLAM, Tanzania (eTN) - In its efforts to survive in African skies, Tanzania’s cash-strapped national airline, Air Tanzania Limited (ATCL), is said it is planning to purchase five Airbus planes in a near future.

According to published reports, the ailing airline’s chief executive officer David Mataka confirmed the plan that will add five Airbus A320s to its fleet, a first in its 30-year history.

Mataka, who was in Miami, Florida last month for the US-Africa Air Transportation Summit, said adding Airbus to its fleet is the airline’s dream. At the Florida meet, the Air Tanzania CEO represented Tanzania and discussed with American aviation business and air transport experts on measures to boost African skies and airlines.

“It is the intention of the Tanzania government to re-establish the Middle East and Far East routes as well as the western Europe routes as we expand from a predominantly domestic service to both regional and international routes,” he said during the summit in Miami.

After parting away from South African Airways (SAA), now ATCL is fighting hard to find a new partner. However, there is talk that China Southern Airlines may buy 25 percent shares in Tanzania’s national flag carrier.

Aviation observers claim they find it difficult to keep the airline afloat after the Tanzanian government withdrew its subsidy to the company last week. In its national annual budget, the government did not allocate funds to subsidize the loss making airline amid outcries form parliamentarians who predicted an amicable death of the airline.

The Tanzanian government has been subsidizing the loss-making ATCL to the amount of more than US$ 400,000 every month before ending its business venture with the SAA early this year.

The airline was established and registered as Air Tanzania Corporation (ATC) in 1977 after the collapse of East African Airways (EAA), an East African regional joint airline whose outright shares were owned by Kenya, Uganda and Tanzania.

Decades of losses and poor performance forced the Tanzanian government to privatize the airline in 2002, with SAA taking 49 percent shares plus management services and business consultancy. Pre-tax loss of US$7.3 million hit the airline (ATCL) in the first year under SAA marriage.

If Tanzania’s national airline succeeds in purchasing the five Airbus A320s, it still faces stiff competition with Kenya Airways, which has dominated the East African skies with affordable and competent airfare. The Kenyan airline has been growing fast in route expansion and ownership of modern aircraft with an introduction of new version of Boeing aircraft.

ATCL operates only two Boeing 737s in its domestic flights and regional destinations.