Air Tanzania

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Air Tanzania

IATA ICAO Callsign

TC ATC TANZANIA

Founded 1977

Hubs Julius Nyerere International

Airport

Fleet size 6

Destination
s

Company Wings of Kilimanjaro

slogan

Parent Government of Tanzania

company

Headquarte Dar es Salaam, Tanzania

rs

Key people David Mattaka (MD), (CEO)

Website http://www.airtanzania.com/

Air Tanzania is the national airline of Tanzania, with its head office in Dar es
Salaam.[1] Its main base is Julius Nyerere International Airport, Dar es
Salaam.[2]. Currently the company operates a few flights. [3]

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History

Air Tanzania Corporation was established on 10 March 1977 after the

breakup of East African Airways, which had previously served the region.
Flights were started from Dar-es-Salaam usingBoeing 737-200s and Fokker
F27s. A Twin Otter was used for regional services and flights
from Kilimanjaro were started. In the mid-1990s, the airline leased
an Ethiopian Airlines Boeing 767but this aircraft was too large and the airline
disposed of it. Regional services were reduced in this period and the Twin
Otter was also disposed of.

Privatization

The airline was originally wholly owned by the Government of Tanzania via
the Air Tanzania Corporation (ATC). In February 2002, the government began
the process of privatizing ATC through the Presidential Parastatal Sector
Reform Commission (PSRC). Advertisements were placed in the local,
regional and international media inviting potential bidders. The International
Finance Corporation (IFC) acted as the Lead Advisor to the Government in
this transaction.[4][5]

The government had approved a transaction structure which included:[6]

 Creation of a new company, Air Tanzania Company Limited (ATCL),

which would be incorporated as a limited liability company, under the
Companies Act to take over the operating assets, and specified rights and
liabilities of ATC.
 A second new company Air Tanzania Holding Company (ATHCO) would
be created to take over the non-operating assets and all other liabilities of
ATC.
The following eight airlines submitted Expressions of Interest:[6]
 Aero Asia International (Pakistan)
 Air Consult International (Ireland)
 Comair (South Africa)
 Gulf Air Falcon (United Arab Emirates)
 Kenya Airways
 Nationwide Airlines (South Africa)
 Precision Air (Tanzania)
 South African Airways
Of the eight, four airlines carried out due diligence – South African
Airways, Kenya Airways, Comair and Nationwide.

On 19 September 2002 – bid deadline date, only SAA submitted a bid. Kenya
Airways and Nationwide informed the Government that they do not intend to
submit bids.[5]

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ATC-SAA Partnership

The government selected South African Airways as the winning bidder. In

December 2002, SAA after signing an agreement with the government
purchased a 49% stake in ATC for USD 20 million; USD 10 million as the
value of the shares and the remaining USD 10 million for the Capital and
Training Account for financing its proposed business plan.[5]

As the strategic partner, SAA planned to create its East African hub in Dar es
Salaam to form a “Golden Triangle” between Southern, Eastern and Western
Africa. It also intended to replace ATC's fleet with Boeing 737-800s, 737-200s
and 767-300s. It also planned to introduce regional routes, routes to the
Middle East and West Africa. The government was expected to sell 10% of its
current 51% stake to a private Tanzanian investor, thereby reducing the
government's ownership to a non-controlling interest in ATCL.[7]

The new airline Air Tanzania Company Limited (ATCL) was launched on 31
March 2003, offering direct flights from 1 April
between Johannesburg and Dar Es Salaam, but also to Zanzibar and
Kilimanjaro.

Air Tanzania recorded a pre-tax loss of almost USD 7.3 million in its first year
following privatisation and part ownership by South African Airways. The loss
was mainly attributed to the inability to expand the network as quickly and
extensively as originally planned. It had been hoped to launch services to
Dubai, India and Europe, but these have been delayed as there are only
Boeing 737-200s in the fleet. The development of Dar Es Salaam as an East
African hub for the South African Airways alliance had also not proceeded as
quickly as planned.[8]

On 31 January 2005 Air Tanzania suspended one of its few regional

services: Dar es Salaam to Nairobi, following intense competition from Kenya
Airways on the route. The airline did however reaffirm intentions to launch
long-haul services within a year from Dar es
Salaam to Dubai, London, Mumbai and Muscat.[9]

Termination of Contract

On 31 March 2006, the Government of Tanzania announced that it would

dispose of Air Tanzania Company Limited (ATCL) following the four years of
loss-making which amounted to TZS 24.7 billion.

The Tanzania Civil Aviation Authority Director General said "Air Tanzania was
in a worse state than before it was taken over by SAA".

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South African Airways blamed Tanzania's government for failing to release
about USD 30 m needed to implement Air Tanzania's business strategy to
reverse continued losses.

On 7 September 2006, the Tanzanian government bought back the 49%

stake in ATCL for USD 1 million, hence officially terminating its partnership
with South African Airways. The venture collapsed due to the partners'
different interests in the business.[10]

Revamped ATCL

After the partnership between Air Tanzania and South African Airways
officially ceased to exist, the government took the initiative of setting
aside TZS 13 billion for: completing operation code ATCL 197 instead of 083,
changing revenue systems and fuel services, preparing e-ticketing and
accounts systems, using a new trademark, and clearing outstanding debts.[11]

President Jakaya Kikwete appointed Mustafa Nyang`anyi, a veteran politician

and diplomat Ambassador as the Board Chairman and former Parastatal
Pensions Fund Director General, David Mattaka as Managing Director and
Chief Executive Officer.[12]

From 1 July 2007, ATCL started using its own tickets, Number 197,
recognized by the International Air Transport Association (IATA). The airline
had been using a South African ticket stock, Number 083, during the
partnership with South African Airways. The airline also started using
electronic ticketing in compliance with the IATA resolution from mid July.[13]

The Parliamentary Committee on Economic Infrastructure expressed its

concern about no funds being set aside for ATCL. According to the
opposition, the airline has debts amounting to USD 4 million due to South
African Airways.[14]

A Member of the Tanzanian Parliament asked the government to claim

compensation from South African Airways for taking aircraft spare parts from
the Air Tanzania hangar at the Kilimanjaro International Airport to South
Africa.[11]

In August 2007, Air Tanzania selected the Revenue Accounting Bureau

Service offered by Mercator, the airline IT solutions provider of the Emirates
Airline Group. Once implemented, it will offer benefits such as: enhanced
revenue through accurate billing and verification, lowered accounting costs,
raised productivity and eliminated training costs.[15]

Air Tanzania was relaunched in September 2007 after the dissolution of the
partnership with South African Airways. The new brand represents the
company's name, Mount Kilimanjaro and the airline's international
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destinations. The introduction of the airline's new logo bears the image of
the imposing giraffe – Tanzania's national icon, to replace the South African
Airways flag symbol.[16][17]

On 1 October 2007, the revamped Air Tanzania made its inaugural flight on
the Dar es Salaam to Mwanza via Kilimanjaro route.[18]

Temporary Suspension of Service

In December 2008, the Tanzania Civil Aviation Authority, (TCAA) withdrew

the Air Opearator Certificate for Air Tanzania for reasons accruing to mainly
unsatisfactory safety and operational manuals. In the same month, Air
Tanzania decided to voluntarily resign from IATA membership in oder to
preserve its status while preparing for the IOSA audit which is a prerequisite
for all member airlines. The company was granted the Air Operator Cerificate
by TCAA two weeks later and is now in an a process to return to IATA
membership which has taken long because of preparations for the audit.

Financial performance

Air Tanzania Financial Performance

Year Turnover Profit/Loss Net

Passenge Basic EPS
Ended (TZS bn) Before Tax Profit/Loss
rs Flown (p)
(TZS bn) ( TZS bn)

2000 25.5

2004 (8.7 bn)

2005 (9.3 bn)

Destinations

Air Tanzania flies to/is expected to resume the following routes[16] :

 Domestic scheduled
destinations: Bukoba, Dodoma, Kigoma, Kilimanjaro, Mafia, Mtwara, Mwan
za, Shinyanga, Songea, Tabora and Zanzibar to resume by the end of the
year.

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  Regional Routes: Burundi, Democratic Republic of
Congo, Mozambique, Rwanda, South Africa, Uganda and Zambia to
become operational next year.

Air Tanzania codeshares with Air Uganda and Air Zimbabwe.

Fleet

The Air Tanzania fleet included the following aircraft (as of 4 November
2008):[19]

Air Tanzania Fleet[20]

Passengers
Tot
Aircraft (First/Business/Ec Routes Notes
al
onomy)

Airbus A320-
1 DAR-MWZ; DAR-JHB Branded
214

Boeing 737- DAR-MWZ, DAR-JRO, Not

3 102 (16/86)
200 DAR-ZNZ, DAR-JNB Branded

DAR-ARS, DAR-ZNZ ,
Bombardier
2 DAR-TBR , DAR-KGM , Branded
Dash 8-300
DAR-JRO

As of 4 November 2008, the average age of the Air Tanzania fleet is 17.7
years [1].

Accidents and incidents

 On 1 March 2010, Flight 100, operated by Boeing 737-200 5H-MVZ

sustained substantial damage when it departed the runway on landing
at Mwanza Airport and the nosewheel collapsed. Damage was also caused
to an engine.[21]

External links
 Air Tanzania
 Air Tanzania Fleet
 Air Tanzania Grounded
 IATA suspends Air Tanzania (dec 2008)
 Tanzania’s national airline: At death’s door

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References
1. ^ "The website is currently under maintenance following our
rebranding." Air Tanzania. Retrieved on 2 March 2010.
2. ^ "Directory: World Airlines". Flight International: p. 67. 2007-03-
27.
3. ^ http://www.alternativeairlines.com/aa/news.cfm?
ccs=214&cs=3346
4. ^ Privatisation of Air Tanzania Corporation (ATC)
5. ^ a b c SAA Wins ATC Divestiture Bid
6. ^ a b PSRC Holds ATC Bidders Conference
7. ^ ATC-SAA Partnership Sealed
8. ^ Airliner World, March 2005
9. ^ Airliner World, April 2005
10. ^ ATCL, SAA officially divorced,govt says
11. ^ a b MP wants govt compensated on ATC spares
12. ^ Air Tanzania should do serious business
13. ^ ATC begins to use own ticket stocks on Sunday
14. ^ MPs want govt to adequately fund ATCL operations
15. ^ AIR TANZANIA SELECTS MERCATOR'S OUTSOURCED REVENUE
ACCOUNTING SOLUTION
16. ^ a b Air Tanzania finally reborn with former...
17. ^ Air Tanzania rebrands its logo and aircraft colors to revive its
lost business
18. ^ Revamped ATC makes inaugural flight to Mwanza
19. ^ http://www.ch-aviation.ch/aircraft.php?
search=set&airline=TC&al_op=1
20. ^ Current Fleet Details of Air Tanzania
21. ^ Hradecky, Simon. "Accident: Air Tanzania B732 at Mwanza on
Mar 1st 2010, veered off runway, nose gear collapsed". Aviation
Herald. Retrieved 1 March 2010.

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