Dismiss Notice
You are browsing this site as a guest. It takes 2 minutes to CREATE AN ACCOUNT and less than 1 minute to LOGIN

Air tanzania: The giraffe should not wither

Discussion in 'Habari na Hoja mchanganyiko' started by ByaseL, Dec 21, 2009.

  1. B

    ByaseL JF-Expert Member

    #1
    Dec 21, 2009
    Joined: Nov 22, 2007
    Messages: 2,218
    Likes Received: 12
    Trophy Points: 135

    Sometime back in 2006 the Government of Tanzania (GoT) took a bold decision and terminated the ill fated “marriage” between Air Tanzania Limited (ATCL) and South African Airways (SAA). There was a sigh of relief and exhilaration amongst aviation industry observers including yours faithfully. Under normal circumstances people do not jubilate over sad events like parting ways between two entities. But in a situation where in the marriage one partner is systematically abused, perpetually cheated and arrogantly ignored, a divorce can in this case be a source of joy and renewal to the aggrieved partner.

    There are various and varied reasons why the matrimony between ATCL and SAA could not last but three stand out. Firstly, the objectives of the shareholders of ATCL namely the GoT and SAA were not in unison. GoT’s objective was to create an international airline like Kenya Airways and turn Dar Es Salaam Airport into a competing hub with Nairobi while SAA saw ATCL as a feeding vehicle into its main hub at Johannesburg.

    Secondly, SAA’s investment in ATCL very much hinged on SAA’s “Networking Africa Strategy” envisioned by its former American CEO, Coleman Andrews. When the Nigerian connection fell through the above strategy collapsed thus rendering ATCL to be of no value-addition to SAA’s business model.

    Thirdly and sadly SAA did not have internal competent skills to run a nascent airline like ATCL neither was SAA prepared to fork out some cash to hire the required expertise. The first management line up and subsequent leadership we saw at ATCL came from some internally displaced personnel within SAA masquerading as airline managers who within a short span inflicted a five million dollars hole on ATCL’s balance sheet!

    Like day follows the night what ensued was acrimony and recriminations between the shareholders and the best course of action was to let go. The GoT took full control of ATCL, appointed a new Chief Executive and Board of Directors while promising heaven on earth in terms of capital and human regeneration. Management and the Board were tasked to moot a “phoenix” plan for the liberated ATCL which entailed three phases. Firstly, ATCL to disengage from the parasitic SAA service outsourcing agreement ranging from fuel purchase, aircraft maintenance, financial and revenue accounting and frequent flyer program. The Second phase was to stabilize ATCL operations in terms of rationalizing the existing network and bring about financial sustainability. The final phase was to prepare a medium to long term plan that will evolve ATCL from a small scale domestic-cum regional airline into a regional and international aviation powerhouse in East Africa with tourism development at the forefront of the airline’s mission.

    While the first phase has been undertaken with great success, the second phase has been quite challenging to say the least. When the new Management took over from SAA seconded management there was a mess to clean up in terms of debts left by SAA team to the tune of Tshs.13.3 billion. The GoT undertook to underwrite these debts as part of the “alimony” for separation with SAA. Meanwhile the airline was bleeding to the tune of Tshs. 500 million per month which the GoT was shelling out as subvention. However this funding ceased soon after the new Management took over. Within three months Management was able to bring down the loss to Tshs. 200 million per month. Nevertheless, it did not take long for GoT to start baulking at settling the “alimony” when the debtors came calling and some like SAA are already in court. Meanwhile, as part of a medium to long term plan a Tshs. 67 billion budget was presented to the GoT to be considered for the 2007/08 budget period but was nipped in the bud for the reasons that we shall see below.

    Enter China Sonangol Holdings Ltd (CSHL) of Hong Kong, the new found prospective investor. At the invitation of GoT , CSHL came into ATCL with engines firing on all cylinders. To cut the long story short this cash endowed ATCL’s suitor, with no prior aviation experience to speak about, consigned the stabilization plan on a backburner and immediately set into motion ATCL expansion program. To their credit CSHL put down a payment ( for slots) of some $ 2.9 million with Bombardier and Airbus Company for two Q400 turbo prop, two Airbus 319 and two Airbus 330 all brand new aircraft from Bombardier and Airbus respectively. Meanwhile ATCL was told to go shopping for two used Dash 8 and lease in an Airbus 320 aircraft from Wallis Trading Company on CSHL’s account. Things were getting rosy at ATC House, but not for long.

    For some strange reasons CSHL started getting cold feet. The first call on the installments by the aircraft manufactures i.e Bombardier and Airbus Company did not materialize throwing the Sales Agreement between the manufactures and ATCL into tatters! The promised funds to introduce the Dash 8 and Airbus 320 aircraft into ATCL fleet system was not forthcoming either from GoT or CSHL thus ATCL was forced to dig into its miserable pockets. This act alone threw the stabilization process off course and the worst was yet to come. In December 2008 the giraffe tailed airline was forced to suspend flights because of not being able to fulfill the Air Operators Certificate (AOC) and the rest as they say is history.

    It is an open secret that the national airline is in very dire straits and if something dramatic is not done we could be seeing the last moments of the “Wings of Kilimanjaro”. In my view the GoT needs to do three things;

    Firstly, GoT should stop flip-flopping on ATCL’s way forward, show firm commitment in terms of providing adequate capital in a timely manner. There is a lot of bureaucracy within the government system which is not conducive to airline operations. The notion that ATCL can fizzle out and Precision Air fill the void is nothing but self delusion. Once ATCL goes six feet under, Kenya Airways will simply pull the plugs on Precision Air and demand to set up its own camp in Dar Salaam and that will truly be the darkest moment for the aviation industry in Tanzania.

    Secondly, GoT should go slow on the privatization of ATCL yet again. There is no need to rush into a “pre-wedding party” when both the bride and the groom are not yet ready! Let the shareholder clean ATCL’s balance sheet and stabilize the airline first before looking for courtship. Although CSHL has deep pockets to bankroll ATCL, however, the Chinese investor is still a novice as far as the aviation business goes. Moreover, it is quite obvious that CSHL’s interest in ATCL is dependent upon CSHL’s success in securing other lucrative deals like minerals and oil from the GoT. Short of that CSHL’s commitment on ATCL is not cast in stone.

    Finally there is a need for the aviation authorities in Tanzania to go cautiously on adoption of the open skies policy given the precarious situation currently obtaining in the aviation industry in the country. This sector is so weak such that it cannot withstand full-fledged competition from foreign airlines hence the need to enforce some protectionism to give room to our home based airlines to grow. The Giraffe should not be left to die out.




    Byase Luteke
     
  2. B

    Bulesi JF-Expert Member

    #2
    Dec 21, 2009
    Joined: May 14, 2008
    Messages: 6,282
    Likes Received: 254
    Trophy Points: 180
    It is high time his excellency the President came out and fulfilled the promise he made to the nation of rejuvenating the operations of ATCL. It seems the bureaucracy within the GOT does not support the President's initiative of revamping ATCL hence their reluctance in providing timely financial support to the ailing Airline. The grapevine has it that some of these civil servants in both the treasury and transport ministries are on the payroll of ATCL competitors charged specifically with the task of making decisions that are detrimental to ATCL'S operations. If these detractors in the said ministries are not sorted out quickly , ATCL will soon go six feet under!!
     
  3. PakaJimmy

    PakaJimmy JF-Expert Member

    #3
    Dec 21, 2009
    Joined: Apr 29, 2009
    Messages: 16,234
    Likes Received: 105
    Trophy Points: 160
    This issue makes me sick again!

    Of last few weeks i gave a detailed adventure of the new launch of dAR/aRUSHA ROUTES of ATCL carriers,which were officially commissioned on 02/12/2009, with lots of extravaganza!

    But to the best of annoyment, they have landed down to Arusha Airport for less than 7times since then(almost a month now).

    They end up selling up their customers to Precision, which is technically a grave mistake, leave alone the said grapevine on the payrol-thing as alleged by Bulesi in his post no.2!

    hII KITU HAKIKA HAIVUMILIKI!
     
  4. B

    ByaseL JF-Expert Member

    #4
    Dec 21, 2009
    Joined: Nov 22, 2007
    Messages: 2,218
    Likes Received: 12
    Trophy Points: 135
    Bwana Bulesi what you are saying about people in the Ministries being on the ATCL competitor's payroll is indeed not a mere rumour. It has been acknowledged by one high raking official in one of the encounters. It is sad that some people do not see what KQ is up to.
     
  5. j

    jstopher49 New Member

    #5
    Dec 21, 2009
    Joined: Jun 16, 2009
    Messages: 1
    Likes Received: 0
    Trophy Points: 0
    Haya mashirika ya tanzania sijui ni kwanini hayafanyi vizuri?
     
  6. Pdidy

    Pdidy JF-Expert Member

    #6
    Dec 21, 2009
    Joined: Nov 22, 2007
    Messages: 25,616
    Likes Received: 1,644
    Trophy Points: 280

    Guys sometimes ni wenyewe wanajiua tuache kuwasingizia hawa ma competetitors,...mfano hili swaala la kutoruka arusha ni swala lao binafsi ile ndege ya pili imearibika inaitaji kifaa cha sh million 350...huu ni upuuzi kwa kampuni kama atcl kusubiri million 350 kutoka serikallini...wakati ukiingiza hela unaatakiwa uweke hela ya emergency sasa kama wanajaz full kila siku mwanza/kigoma so mnatarajia Mungu Atashuka kirahisi...tatizo kubwa si viongozi waa wizara ni kampuni,..na kinachofanya haya ni kwamba hawa viongozi wanajuana na wamezoana wanajua wakimwaga kiasi kazaa pale zianaisha kwa upepo na kurdi na matatizo...mnakumbuka nilikuwa nikisoma magazetini wanaitaji billion 7.1 kwa raha zake yule mwenyekiit mbele ya waandhishi wa habari akasema zikiletwa matatizo kwishna hata kama yapo hayatakuwa mengi...wakapewa zote wako wapi...sasa mnasema hao swala la ndege kuharibika wanaharibu wenyewe ama.........??
    gve m break
     
  7. K

    Kicheruka JF-Expert Member

    #7
    Dec 21, 2009
    Joined: Feb 2, 2009
    Messages: 792
    Likes Received: 1
    Trophy Points: 35
    Kwa sababu ya ufisadi
     
  8. Pdidy

    Pdidy JF-Expert Member

    #8
    Dec 21, 2009
    Joined: Nov 22, 2007
    Messages: 25,616
    Likes Received: 1,644
    Trophy Points: 280
    swala la kutotua arusha liko wazi mambo ya sunset...inabidi itue kia ,ili uhai wa watu uwepo....tusiwalaumu sana precission,...mbona wao wamelaza ndege tatu chiini kwa matengenezo mmsikia wakiropoka chochote....na wanapiga mbawa angani...swala bovu kwa watanzania wakijua wameharibu wanakimbilia kujitetea ...sasa inabidi kwa manufaa ya umma utetezi upimwe kwa makini
     
  9. Pdidy

    Pdidy JF-Expert Member

    #9
    Dec 21, 2009
    Joined: Nov 22, 2007
    Messages: 25,616
    Likes Received: 1,644
    Trophy Points: 280
    haaaaaaaaaaaaaaaaahaaaaaaaaaaaaaaaaaaaaaaaaaaa

    mmmmmmh tutawalaaaaaaaani hawa kompiteta mpaka lini jamani;
    nafikiri JK ameichoka hii kampuni..na nahisi anataka ikafie mbali na ndio maana
    naambiwa kila department wizi mtupu...sasa anyway sijui menejiment itafanyaje kama kila mtu aanachukua chake mapema...hawa watu tatizo moja lingine naliona awana watu
    creative wenye kujua marketing za sehemu wanazokimbilia...wao wakipata ndege wanairusha ili mrdi imeruka...nakumbuka ilifika sehemu napanda kwenda kia na abiria 3 zaidi ya mara 15 sasa nani wa kulaumiwa ukiuliza wanadai wakubwa hawataki kubadilisha rte...so mnaweza kulalamika na wa nje lakini ndani ya ATCL kuna watu wanakula mishara ya precission hili liko wazi....sasa kama unahonga menejiment hii hwafanyakazi watafanya nini??
    Kingine lazima uongozi uwe makini.;;mpaka sasa nasikia watu awajalipwa mshahra wao wa nov wakisingizia wametumia hela kutengenezea ndege ya pili...sasa mpaka sa hizi hakuna ndege ilioruka..sasa unatarajia kama wanapishana Dili za sabotage unafikiri nini nexty??so viongozi wakaechini waangalie wapi tatizo wapio pa kurekebisha.......kila mtu analalamikia wao....ndege zinajaa kila siku mishahaara inaenda wapi??
    pesa za mauzo za kigoma .nma kwingineko nasikia wanapitishia kwenye mikono ya marubani kuogopa bank kukata pesa zao..hizi zikifika zinaelekea wapi...??nani anajua wanazifanyia nini!!!!!ipo kazi
     
Loading...