Thursday, 25 August 2016
TANZANIA: Government Still Trying To Revive Air Tanzania
It is not known at this stage to what extent the Tanzanian government will be paying up outstanding debts of Air Tanzania which were incurred by hapless former managers whose often flawed decisions cost the company billions of Tanzania Shillings and left it saddled with debt.
Aviation sources in Dar es Salaam close to the two other major airlines were for a change cautious in expressing their opinions with one saying: 'I think the main target for market shares of the revived ATCL will be Precision Air because it is obvious that a three aircraft turboprop operation will not go head on with jet airline Fastjet.
Those have their market wrapped up and if Air Tanzania sticks to those aircraft types and not make the same mistake Precision's former CEO made, they can even survive'.
The reference was in regard of Precision's entry into jet operations several years ago which however failed to make an impact on the routes the B737 was deployed and ended the company in a deep financial hole the present management is still struggling to get out of.
The other source then added: 'If the government succeeds in making Air Tanzania viable again, they might then even find a strategic investor, as long as they can clip the wings of the unions which have been a millstone around the company's neck. Of course all depends on the quality of the CEO they are now recruiting and the team that person can put together.
If he or she rely on the old guard sooner rather than later they will face the same problems. They get new aircraft, they also deserve to get a new team from top to bottom to make it a commercial success, because after all, this is my tax money we are talking about'.