Precision may not last long in the air, auditors now warn

Koborer

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IN SUMMARY

An audit report paints a gloomy picture of the loss-making firm, saying its liabilities had exceeded its assets by Tsh83.14 billion ($53 million).

Auditors have raised fresh doubts over the future of Tanzania’s largest commercial airline, Precision Air, given its surging losses and liabilities while the government dithers on approving a bailout plan. An audit report paints a gloomy picture of the loss-making firm, saying its liabilities had exceeded its assets by Tsh83.14 billion ($53 million).

It has also for several years not remitted its statutory deductions and indirect taxes to the government amounting to Tsh19 billion ($12 million) as of March 2013, says the report prepared by the airline’s auditors, Ernst & Young, and tabled at the annual general meeting on November 20.

The airline has been facing serious cash flow challenges occasioned by an overambitious expansion plan that saw it add new aircraft. This has hurt its competitiveness, especially as it struggled to stave off competition from budget airline Fastjet, whose relatively affordable fares have had a big impact on the local market.

The bad shape of Precision’s finances saw it apply for a capital injection of $32 million from the government a few months ago, a bid that has not borne fruit. In the year ended March, the airline posted a Tsh30.4 billion ($18.7 million) loss.

Precision, which began scheduled flights 14 years ago, is further faced with lack of working capital to support its operations and loan repayments, said the auditors.

“These conditions indicate the existence of a material uncertainty that may cast significant doubt on the company’s ability to continue as a going concern,” said the auditors.

The entrance of Fastjet has seen the Dar es Salaam Securities Exchange-listed Precision halt flights to other local destinations and suspend all foreign routes since the new managing director took over last year.

The airlines’s chairman, Michael Shirima, who is the majority owner with a 42.91 per cent stake, said in mid October that the government had asked for the shares to be revalued before taking a decision on the capital request. He also revealed that Precision was in contact with other carriers interested in taking up a stake in the airline.

The auditors said while the directors and management believed their actions would mitigate the situation, the assumption used in preparing its consolidated and separate financial statements for this year, there could be no absolute assurance that they will be successful.

They added that the airline may be unable to realise its assets and discharge its liabilities in the normal course of business. Since 2006, Precision’s passengers increased from 340,000 to 896,000, or close to five million. However, Mr Shirima lamented, that did not translate into growth in profits and the latest loss brings down the average net profit margin for the eight years to just one per cent.

Saying currency mismatches in the airlines’ cash flow were partly to blame for the losses, he added that a large part of its income was in Tanzania shillings while most of the expenditure — such as aircraft purchase, spare parts, fuel and large repairs — was in foreign currency, causing forex losses.

Other reasons for the poor performance included leasing costly Boeing aircraft, rising fuel costs that could not be passed on to passengers and weak credit controls leading to significant allowances for credit losses.

The directors have decided to return the leased aircraft, cancel related maintenance contracts and retain an all-ATR fleet. The cancellation of the contract cost Precision Air $2 million.

Source: Precision may not last long in the air, auditors now warn - Business - www.theeastafrican.co.ke
 
Tunadharau watanzania wenzetu kwa kila kona. precission walijitakia msiba wao wenyewe. hivi kweli nchi kama kenya ambayo inashirika lake KQ ambao in general wahaitakii mema tz unaenda kuchukua mtu huko kujakuwa CEO wa PAA?

mbali na hapo kulikuwa na umuhimu gani wa kuungana na KQ? Pia mtu anawezaje kukodi ndege halafu mnaambiwa zimenunuliwa mnakubali na mnashindwa kujua kwa muda wote huo. halafu inaonekana hata wakurugenzi nyeti wote walikuwa ni wakenya na walikuwa kundi moja kwani haingii akilini madudu yote hayo yafanyike bila kujulikana kwa muda mrefu hivyo
 
Si aliomba serikali bail out hawajampa?ajitahidi kuwaomba ili mradi 10% ya bail out wale wakubwa,
 
Tatizo letu ni kutojifunza kutokana na makosa yaliyo wahi kukumba Taifa letu kutokana na kuamini majirani zetu kipita kiasi! Mimi nilishangazwa na ujasiri wa PAA kutaka kuomba msaada kutoka Serikali yetu mambo yalipo mwendea kombo, kama mwanzo aliona aingie ubia na KQ ambayo majority wa share holders ni Serikali ya Kenya, kwa nini hakuenda huko Kenya kuomba msaada? Anataka kutwambia hakujua long term plan za mbia wake i.e KQ ilikuwa ime-aim kufanya nini kuhusu usafiri wa anga ndani ya Taifa letu specifically domestic routes - give them an inch they will take a mile! KQ walikwama kutekeleza azma yao fully kwa kuwa na wao mambo hayawaendei vizuri siku hizi.

Sina shaka Mheshimiwa Shirima atakuwa amajifunza mengi kwamba usiache mbachao kwa......, hivi ilikuaje aka amini wageni kupita kiasi mpaka anafikia hatua ya kushidwa kutofautisha between wet leasing na ununuzi wa moja kwa moja - wakati tuliambiwa yeye ana uzoefu wa siku nyingi katika biashara hii - what went wrong?
 
na hata ile loss walio- report KQ ilikuwa ni strategy ya kukwepa any financial implication ambayo ingekuwa connected na PAA ndo maana wakaamua kuripoti loss lakini kusema nchi za nje zilikataza raia wake kuja Kenya sidhani kama zina ukweli. wafanyakazi wa Kenya kibao walikuwa wamejaa kwenye ndege za precission
 
ndo hasara ya kuwaamini wakenya kwa kila kitu
hawa wenzetu hawako tayari kutuona tunasonga mbele kiuchumi
wana ile roho ya kwanini kwa ambao hamuwajui vema.
wapo watanzania waliosoma na wenye uwezo zaidi ya Kioko yule mkurugenzi alieachia ngazi.
nadhani tupiganie ATC zile ndege walizoagiza zije hata tukiwa na ndege 3 zinatosha kwa kuanza
wale wawekezaji waarabu waje lakini nao tuwapime mikataba yao na utendaji wao katika soko la anga
hao precision shauri yao, hawakutaka kujifunza market strategy mapema
 
Lilivyokufa shirika la ATCL,Hawa precision air walichekelea sana,sahv mungu amewalaani nao wanaugulia,fundisho hapa ni kwamba mwenzako akiteleza akaanguka usimcheke,mpe pole msaidie kujipangusa vumbi muendelee na safari
 
Sisi hatuna shida sana na usafiri wa anga, tuna shida na usafiri wa reli. Reli inahudumia abiria wengi kwa wakati mmoja na ina uwezo mkubwa sana wa kubeba mizigo
 
Bujibuji said:
Sisi hatuna shida sana na usafiri wa anga, tuna shida na usafiri wa reli. Reli inahudumia abiria wengi kwa wakati mmoja na ina uwezo mkubwa sana wa kubeba mizigo
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mkuu hapa unaua. HA HA HA HA HA
 
Bujibuji said:
Sisi hatuna shida sana na usafiri wa anga, tuna shida na usafiri wa reli. Reli inahudumia abiria wengi kwa wakati mmoja na ina uwezo mkubwa sana wa kubeba mizigo
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Well said mkuu, kila binadamu mwenye akili timamu anajua fika kwamba reli ina umuhimu wa pekee nchini - Mkuu hivi wewe unaona kuna dalili za kweli nchini za kuvalia njuga suala hili la RELI - labda mimi niko overly PARANOID kuhusu ucheleweshaji wa ujenzi wa reli ya kati 2 Standard Gaunge, wanazungumzia mambo mengine kabisa - binadamu ninaye muona yuko commmited by 100% ni JK na Dk.Mwakyembe swali ni je, wenyewe peke yao wanaweza ku-move mountain kweli - Kenyatta amekwisha onyesha mfano kwamba "YES THEY CAN" sisi tunasuha suha nini? Juzi hapa nilisoma chapisho fulani silikumbuki vizuri eti suddenly wasafirishaji wenye ma-Juggernaut yao wanasema watakuwa responsible kuhakikisha barabara zetu zinatunzwa - who can take these business guys seriously!! Kama Serikali ya Kenya inalalamikia wafanya biashara wa malori makubwa nchini mwao kwamba wameanzisha kampeini ya kuipaka matope Serikali yao kwa kuhoji eti kwa nini Serikali yao inakubali ujenzi wa reli unaogharimu $6million kwa Kilometer moja, wanayasema hayo huku wakijua Wachina na Kenyatta wamesema gharama ni $2million kwa Kilometer moja - basi tu wafanya biashara hao hawataki Reli hiyo ijengwa au ikiwezekana ichukue miaka nenda rudi kukamilika - huko ni Kenya, je hapa kwetu si ndio balaa!!! - jamaa hawa wako well organised.
 
Reli inajengwa, ukienda Tabora ukishatoka kwenye rami pale manyoni humo porini wachina wako busy kweli
 
CEO wa kwanza aliyetimulia alikuwa kutoka Kenya sasa tena aliyekuja ni kutoka hukohuko Kenya!!! Kuna kupona shirika kweli hapo?! Majangaa!
 
ilisha juniour said:
Lilivyokufa shirika la ATCL,Hawa precision air walichekelea sana,sahv mungu amewalaani nao wanaugulia,fundisho hapa ni kwamba mwenzako akiteleza akaanguka usimcheke,mpe pole msaidie kujipangusa vumbi muendelee na safari
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ATCLilikuwa inahujumiwa na makundi mawili, serikali kuingilia management na kutokudhibiti mapatao na lack of business focused mechanism (bora liende)

Kwa Precission wao walikuja na strategies za kishamba utadhani ni mabasi yanagombania abilia. Precission walikuwa wanaihujumu ATCL kupitia wafanyakazi wa humo humo ATCL, mara vioo vipasuke angani, na vituko vingine vingi na infact walikuwa wanapika ajari ili wakidhani strategy za namna hiyo ndo za kushindana. pili control ya mapato haikuwepo uswahili mwingi unakuta wale wanaohusika na mizigo hata kwa macho tu inaonekana hawajasomea hiyo kazi, mambo ya ujanja ujanja tu
Ndege inakuwa over booked ukizubaa tu unaaambiwa ndge imeshajaa na uko kwenye folen halafu vile vidada vinajiondokea vinawaacha hamjui cha kufanya mtu mwingine unakuta labda anakuja kwenye interview! au anaunganisha flight Mnakuwa mumemkwamisha halafu bad enough it was ok with them as long as you dont have anywhere to take them utarudi tu humohumo precission kushitaki and no ones care zaidi ya kupangiwa flight ya keshokutwa. Hii habit waliendayo kwa muda mrefu bila kuwa na long term plan, Ikaja community airline nadhani wakaiua kwa kuichongea kule kwa insuerer pia wakaichomea serikalini kwamba haina vigezo (technically) vya kutua baadhi ya viwanja. ikabidi shirika la watu lijiondokee.

So strategy zao ilikuwa ni kuburuza competitors na customers alike na bei zilikuwa zinabadilika overnight. halafu walivyo poor thinkers au kutafuta visingizio wanasema kubadilika badilika kwa bei ya dola ni sababu moja wapo ya wao kuanguka. Jamani hivi yale mambo tuliyokuwa tunasoma kwenye international finance kama future forwarding na vitu kama hedging kwa vyovyote vile ni common kwa baadhi ya industry kama airline na mining ili kufanya forecast ya operation costs Kuwa stable, wao financial analyst wao alikuwa hawaambii au walipiga chini kupunguza gharama

Waliondoka kwenye business principles wakaanza ujanjaujanja ili ku-maximize kumbe majanga yalipokuja kama fast jet na mengineyo wakakosa ujanja.

suala la kupewa hela serikalini liko hivi.

Huwezi kuomba hela hizo kwa shirika linalokaribia kufa kama hilo bila kuwa na implication kwenye shares.

Hii inakuwa sensitive issues wakati Kampuni inaanza na haina capital au Kampuni iko kwenye crisis na inataka kuokolewa. Ikifika hapo lazima mkubaliane na lender masharti yake ikiwa ni pamoja na yeye kuchukua hisa nyingi sometime anataka awe na majority stake ili awe na sauti ya mwisho katika kuamua investment. Sasa je Shirima atakuwa tayari kusarenda hizo 43% na pia hao KQ nao wasarende hizo 41% ili bailout iwe possible. Hakuna mjinga atakaye jiwekea hapo hela kiholela na hapa wala sio siasa
 
Jamani watanzania inabidi wawe macho sana na wakenya ,ubia na wakenya umechangia sana kuifikisha iyo kampuni hapo ilipo. Illikuwa inaendeshwa kama biashara ya familia. Huyo CEO aliepita alikuwa anawaburuza wakurugenzi wote wa chini yake,ambao 60% aliwatoa Kenya kuja kutimiza matakwa yake.

Mbaya zaidi huyo Shirima anaelia sasa hivi alikuwa hataki kushauriwa kabisa,watu wa ndani walishagundua uchafu wote mapema ila mzee akifikishiwa taarifa anasema watanzania wavivu waache wakenya wafanye kazi. Nadhani atakuwa amepata fundisho kubwa sana katika maisha yake kwa jinsi walivyomtenda.
Na huyo fedhuli wa Kenya Bwana Kioko bado yuko Tanzania anakula raha na vikampuni vyake vilivyotokana na ubadhirifu alioufanya Precisionair.
Shirima asitafute huruma ya Jamii ,yeye akiwa kama mwenyekiti wa bodi wa Precisionair kwa kipindi cha miaka 14 amechangia kulea uozo wote uliotokea pale. Mipango yote ya muda mfupi, wa kati ,na muda mrefu ilikuwa na baraka za bodi inayoongozwa naye.
 

ha,ha,ha,ha sawa sawa ni kama mtu ana gari halaf kimeo ndo anataka kuliuza kijanja,sasa kwakuwa serikalini napo janjajanja wapo wamestukia hlo,bila hvyo wangeingia mkenge mbaya na lingekuwa bonge la skendo,wawaache wafe kifo cha kawaida
 
ilisha juniour said:
ha,ha,ha,ha sawa sawa ni kama mtu ana gari halaf kimeo ndo anataka kuliuza kijanja,sasa kwakuwa serikalini napo janjajanja wapo wamestukia hlo,bila hvyo wangeingia mkenge mbaya na lingekuwa bonge la skendo,wawaache wafe kifo cha kawaida
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Unataka kusema hayo yaling'amuliwa kwa sababu ya kuwepo Dr. Mwakyembe pale wizarani!?

 
Balacuda said:
Reli inajengwa, ukienda Tabora ukishatoka kwenye rami pale manyoni humo porini wachina wako busy kweli
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tupe updates maana roho inatuuma kwa kutoelewa nini kinaendelea uko!
 

Wamiliki wa malori wanaihujumu sana reli Tanzania. Na wana nguvu za ajabu!

 
daviey69 said:
tupe updates maana roho inatuuma kwa kutoelewa nini kinaendelea uko!
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4
Kazi inaendelea ila ujenzi wa barabara ndo unasuasua ingawa unaendelea ila speed ndogo sana ingawa kwa baadhi ya maeneo mambo yanaenda vizuri unajua wamegawana campuni fulani kuanzia sehemu fulani had fulani na nyingine hivyohivyo.

kwa upande wa barabara kule urambo speed iko vizuri sana wako busy mashine nyingi barabarani

kwa reli wameanzia katikati humo porini baada ya manyoni kuna kituo fulani kule ndani nimekisahau jina ila ndo kitovu cha asali kwenye hiyo barabara hapo ndo watu wa reli wako busy kweli
 
Haswa reli ndio muhimu kwetu ndege waqt bado
 
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