Air Tanzania readies for long-haul flights

Air Tanzania is one of 11 public companies that are struggling, amid plans for long-haul flights later in the year and a fleet expansion plan.

However, Air Tanzania Company Ltd (ATCL) managed to reduce its annual loss from Tsh14.2 billion ($6.2 million) in 2016 to Tsh4.3 billion ($1.9 million) in 2017. The figures for 2018 were not available.
ATCL is expected to launch flights to China in June and to South Africa in July.

ATCL gained momentum when the fifth phase government under President John Magufuli came to power and resolved to revive the ailing national carrier by buying six aircraft, which have enabled it to resume regular flights.

Since its revival, the airline has inaugurated flights to international routes including Bujumbura and Entebbe within East Africa region, as well as the Comoro islands, Lusaka and Harare.

The company is implementing a five-year strategic revival programme that ends in June 2022, and anticipates that by that time it will have expanded its market share portfolio to enable it to go it alone without further state help.

Regional carriers continue to post losses, with Kenya Airways this week reporting a $75.5 million loss for the year ending December 31, 2018.

Rwanda’s national carrier, RwandAir has also significantly reduced its annual losses signalling growing stability as it expands to new destinations.

It managed to reduce its losses to $1 million last year, from $2.8 million the year before, while financial costs rose to $15.1 million.

RwandAir is now flying to 26 destinations across the globe.

South African Airlines, which has been struggling, expects further losses in 2018/2019 and 2019/2020.

The only African airline reported to return a profit consistently has been Ethiopian Airlines.

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