ATCL market share increases to 20pc

Arusha. Air Tanzania Company Limited (ATCL) has increased its market share in domestic aviation to 20 per cent from 2.5 per cent when it embarked on a recovery programme in October 2016.

However, the national carrier still trails privately owned airlines Fastjet and Precision Air.

The Citizen understands that Fastjet’s market share in the first quarter of the current calendar year was 42 per cent, while Precision Air’s is between 30 and 40 per cent.

By last year, ATCL’s market share had more than quadrupled to 14.4 per cent, thanks to concerted efforts to turn around the carrier, which was for years crippled by huge debts and mismanagement.

Monthly revenues have increased from an average of Sh100 million in October 2016 when the recovery plan was operationalised to Sh4.5 billion currently.

This was revealed on Tuesday during a meeting of the airline’s management with tourism stakeholders in Arusha under the auspices of the Tanzania Association of Tour Operators (Tato).

“We see a bright future despite a host of challenges such as stiff competition on regional routes and the condition of some of our airports,” said Mr Edward Nkwabi, the company’s sales and distribution manager.

He added that ATCL’s liquidity had improved slightly to 90 per cent due to improved flight schedules, while the number of destinations had risen to 11 from only four in 2016.

Improved performance has also been attributed to the expansion of the airline’s fleet following the purchase of four Bombardier Q400 airliners, the last of which was delivered recently.

Mr Nkwabi admitted that weak branding, inefficiency and lack of capital contributed to the woes ATCL grappled with in recent years.

By September 2016, the airline was making an annual loss of Sh40 billion and was reeling under debts amounting to Sh106 billion.

The airline’s CEO, Mr Ladislaus Matindi, admitted that there was stiff competition in the aviation sector in eastern and southern Africa, adding that only profitable routes in the region would be given priority.

“We will penetrate the regional market only where there is maximum revenue,” he said, adding that the airline was considering flying between Kigoma and Bujumbura since there was no strong competitor on the route.

Arusha Regional Commissioner Mrisho Gambo emphasized the need to connect the northern tourism circuit with the rest of the world, saying that was where 80 per cent tourists visiting the country ended up.