Investors to revive Alliance Air

UGANDA and Tanzania private firms have stepped in to revive the suspended SA Alliance Air by December 1, a statement said yesterday. John Odyek reports that Elvis Musiba, the president of the Tanzania Chamber of Commerce, Industry and Agriculture, said a delegation of entrepreneurs from the two countries had come together to buy the shares from the Uganda and Tanzania governments who own 30% shares each. Musiba heads the venture. Frederick Ochieng-Obbo, Deputy Managing Director SA Alliance Air, said yesterday Dairo Air Services of Uganda and the Tanzania Chamber of Commerce next week begin negotiations with the governments over the shares. He said the negotiations would also involve Transnet, a South African government company that owns 40% of the airline, which funded most of its operations. A statement faxed to The New Vision yesterday from Dar es Salaam said SA Alliance Air operations resume December 1. It said, "A delegation of Uganda and Tanzania entrepreneurs signed yesterday an agreement to resume SA Alliance Air Services, which were recently suspended." Musiba said, "Following a two-day intense meeting, the two delegations have agreed to form a joint venture arrangement to negotiate with the governments of Uganda and Tanzania and Transnet of South Africa to ensure a smooth transition towards the new operation targeted for 1 December 2000." Ochieng-Obbo said the airline's new business plan was underway. SA Alliance Air early this month suspended its four-year operations over cash shortages, pending a shareholders decision on how the airline should be funded. Over 100 of its employees were sent home. Uganda is shopping for a private investor to buy its shares. Ochieng-Obbo said the employees' services were not terminated and could not be paid terminal benefits. He said once the future of the airline became certain, the legal issues would be resolved. South Africa Airways offered to fund SA Alliance Air if Uganda and Tanzania capitalised their shares of the airline that accumulated a loss of US$50m. Ends.