ATC Flies Back From Slump
Jun 08, 2003
THE survival of new and other struggling airlines in the region, will depend on how they consolidate with major players on the continent.
By Steven Odeu
in Arusha
THE survival of new and other struggling airlines in the region, will depend on how they consolidate with major players on the continent.
Air Tanzania officials (now part of South African Airways), warn that the industry is still facing serious challenges and only those that are focused would survive in the near future.
Air Tanzania Corporation (ATC), until recently almost on the verge of collapse, was given a $20m injection by SAA in a deal finalised last year.
SAA became a strategic investor with a 49% stake, and the Tanzanian government the remaining 51%.
“With a massive $10m investment into new routes, training and acquisition of new aircrafts, our flight schedule now cover a wide range of domestic, regional as well as international multiple flights to continental Europe, Middle east, Asia, West and Southern Africa,†Gregory Havemahl told The New Vision last week in Arusha. He is the managing director of Air Tanzania.
He said the airline would try to concentrate on the regional market before venturing to Europe and the Middle East and other destinations outside Africa. They are presently working on setting up a strategic hub to feed Africa and most of Europe.
“In the next three years, we are planning to dominate the region and most of Europe. We have done it with SAA and it is possible with ATC,†Havemahl said.
“However for many of the new and old airlines to survive in business over the next five years, they will have to consider strategic interventions such as joint ventures or sell of shares,†he said.
“The special reward of joining ATC will be an invitation to join the SAA voyager Frequent Flyer Programme. Our highly beneficial incentive package,†Katiti, the ATC Commercial Director said during the Karibu Tanzania Travel and Trade Fair (KTT) in Arusha.
As a strategic equity partner of SAA, Air Tanzania is now able to offer more efficient schedules with a wider route network. Air Tanzania has introduced new flights into Kilimanjaro – right in the heart of the Northern circuit tourist destinations such as Mount Kilkimanjaro, Serengeti, Ngorongoro, Manyara, Dar-Eas-Saalam, Zanzibar and Mwanza on lake Victoria.
Other destination in the region includes Nairobi, Entebbe and Johannesburg. ATC now have Central, eastern and Southern Africa covered. However, ATC presently faces a big challenge from the buses and small aircrafts that also operate within the region. They are cheaper and also quicker.
Havemahl explained that ATC would soon acquire smaller aircrafts to counter the competition from buses, “We will also provide better services to customers than they do,†he said.
Katiti, said the airline is presently in joint partnership with several hotels and tourism centres in the region. The airline also offers shuttle services from the airports to some of the hotels.
KTT is a private sector event that is designed to promote the tourism industry The annual exhibition lasted three days.
is now east Africa’s biggest tourism event of the year.
“Attendance at Karibu is vital if one is part of the tourism industry. There is a great chance to promote Uganda s a tourism destination in such events. We have everything good and can be a strong player globally if we promote our country realistically,†Kelly Munguar, director Pearl of Africa told The Business Vision.
She was the only representative from Uganda in an event that attracts over 200 exhibitors.
Ends
in Arusha
THE survival of new and other struggling airlines in the region, will depend on how they consolidate with major players on the continent.
Air Tanzania officials (now part of South African Airways), warn that the industry is still facing serious challenges and only those that are focused would survive in the near future.
Air Tanzania Corporation (ATC), until recently almost on the verge of collapse, was given a $20m injection by SAA in a deal finalised last year.
SAA became a strategic investor with a 49% stake, and the Tanzanian government the remaining 51%.
“With a massive $10m investment into new routes, training and acquisition of new aircrafts, our flight schedule now cover a wide range of domestic, regional as well as international multiple flights to continental Europe, Middle east, Asia, West and Southern Africa,†Gregory Havemahl told The New Vision last week in Arusha. He is the managing director of Air Tanzania.
He said the airline would try to concentrate on the regional market before venturing to Europe and the Middle East and other destinations outside Africa. They are presently working on setting up a strategic hub to feed Africa and most of Europe.
“In the next three years, we are planning to dominate the region and most of Europe. We have done it with SAA and it is possible with ATC,†Havemahl said.
“However for many of the new and old airlines to survive in business over the next five years, they will have to consider strategic interventions such as joint ventures or sell of shares,†he said.
“The special reward of joining ATC will be an invitation to join the SAA voyager Frequent Flyer Programme. Our highly beneficial incentive package,†Katiti, the ATC Commercial Director said during the Karibu Tanzania Travel and Trade Fair (KTT) in Arusha.
As a strategic equity partner of SAA, Air Tanzania is now able to offer more efficient schedules with a wider route network. Air Tanzania has introduced new flights into Kilimanjaro – right in the heart of the Northern circuit tourist destinations such as Mount Kilkimanjaro, Serengeti, Ngorongoro, Manyara, Dar-Eas-Saalam, Zanzibar and Mwanza on lake Victoria.
Other destination in the region includes Nairobi, Entebbe and Johannesburg. ATC now have Central, eastern and Southern Africa covered. However, ATC presently faces a big challenge from the buses and small aircrafts that also operate within the region. They are cheaper and also quicker.
Havemahl explained that ATC would soon acquire smaller aircrafts to counter the competition from buses, “We will also provide better services to customers than they do,†he said.
Katiti, said the airline is presently in joint partnership with several hotels and tourism centres in the region. The airline also offers shuttle services from the airports to some of the hotels.
KTT is a private sector event that is designed to promote the tourism industry The annual exhibition lasted three days.
is now east Africa’s biggest tourism event of the year.
“Attendance at Karibu is vital if one is part of the tourism industry. There is a great chance to promote Uganda s a tourism destination in such events. We have everything good and can be a strong player globally if we promote our country realistically,†Kelly Munguar, director Pearl of Africa told The Business Vision.
She was the only representative from Uganda in an event that attracts over 200 exhibitors.
Ends