Wednesday, January 4, 2017

ATCL bullish on 2017 growth prospects despite challenges

HENRY LYIMO
AIR Tanzania Company Limited (ATCL) is relishing 2017 challenges in the aviation sector as it focuses to enhance domestic routes and venture into international market to regain market shares lost to rivals.

ATCL, Chief Executive Officer (CEO), Ladislaus Matide said he was optimistic about growth prospects in 2017 as the national carrier is preparing to launch more domestic flights and venture into Asian and European markets to boost tourist arrivals with new long-haul aircraft expected in June.
“We hope 2017 to be the best and challenging and we’re determined to compete,” he told the Business Standard in an interview adding the national carrier would soon become a force to reckon with after staff overhauling, restructuring of operations and fleet increase which have given it what it takes to compete with strong rivals in the market.
The government has revamped national carrier by buying new planes as part of plans to boost tourism and transport sectors. It bought two new Q400 turboprop aircraft from the Canada’s Bombardier Inc. which arrived in September and signed another deal with the Canadian maker for two CS300 jetliners and one Q400 turboprop aircraft at a cost of $200 million.
President John Magufuli announced on the 5th of December that the government has made initial payment for the purchase of a Boeing 787 Dreamliner, which is expected to be delivered on June 18 to boost Air Tanzania’s fleet to seven planes. Boeing confirmed that the government has ordered a single 787-8 Dreamliner for Air Tanzania on statement posted on its website.
The order was previously attributed to an unidentified customer on Boeing’s Orders & Deliveries website.
The US company on 13 December said the aircraft is valued at $224.6 million at listed prices. “The 787 Dreamliner will be the flagship aircraft as we renew and grow the Air Tanzania fleet. We aim to establish our long-haul capability by starting flights to Europe, Asia and the USA over the coming years and the 787 is the perfect aircraft to achieve this ambition,” an unnamed ATCL official is quoted in the statement by Boeing.
“Our hub airport at Dar es Salaam is well located to provide connections onwards across east Africa, capitalizing on the growing demand for tourism in Tanzania and throughout the region from intercontinental markets.
” The new fleet of the national carrier will be a springboard to growth, Mr Matide reckons. New and rehabilitated airports in various regions such as Dodoma, Mtwara, Mpanda, Tabora and Songea presents huge opportunities for growth as well as challenges, he said.
The national carrier preparations were being finalized for the national carrier to fly to Dodoma, Mtwara, Mpanda, Tabora and Songea as they seek to compete on domestic routes currently being served by rival airlines and venture into new regions with no air transport services.
“We are proceeding with preparations and once we’re through we will launch flights to the routes,” he said in an interview and explained that they were also evaluating business prospects, assessing conditions of the airports and availability of jet fuel. ATCL is currently flying to Kilimanjaro, Mwanza, Bukoba, Zanzibar and Mbeya.
It had also began flying to Arusha but the route was suspended due to operational issues, he said. The CEO said they had finalized preparations for Dodoma and the national carrier was expected to fly to the designated capital soon.
The government is revamping the national carrier by buying new planes as part of plans to boost tourism and transport sectors. Aviation industry in Africa is facing strong headwinds with airlines continuing to struggle and collectively remain in the red with the exception to Ethiopian Airlines and Air Mauritius.
The International Air Transport Association (IATA) announced early December that carriers in Africa are expected to deliver the weakest financial performance with a net loss of $800 million (broadly unchanged from 2016

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