Wins and losses for aviation as 2022 ends

Dar es Salaam. The year 2022 could be described as a period with a mixture of fortunes and bad luck in the aviation sector which encountered a major accident amid recovery.

It was a nice year on the grounds that it was a period of robust rebound from Covid-19, and on the other hand, it was a bad year following the Precision Air’s crash that claimed the lives of 19 people, as well as the introduction of the Value Added Tax (VAT) on leased aircraft.

However, what gives the aviation stakeholders who spoke to The Citizen a reason to smile is the fact that industry was recovering at a higher pace than expected.

Air Tanzania Company Limited (ATCL) Managing Director and CEO Ladislaus Matindi said the year 2022 was in their favour as the speed of resumption from the pandemic was beyond expectation.

The global aviation industry has been enduring one of the most difficult periods in its history over the last two years.

But, in March this year the International Air Transport Association (IATA) predicted air passenger numbers to recover in 2024.

Mr Matindi said the national carrier was now operating better than the pre-Covid era when it came to both domestic and international passenger traffic.

He said in 2022, the airline flew 663,720 passengers domestically, which is higher by 7.3 percent compared to the pre-pandemic (2019) figures.

Foreign passenger traffic on the other hand jumped by 115.9 percent to 177,966 compared to the pre-Covid period (2019).

Mr Matindi attributed the industry’s performance to relaxation of Covid-19 restrictions, a conducive business environment and Royal Tour initiatives.

“More people are travelling now than in 2019. After the lockdown, people now need to have fresh air from various parts of the globe,” said the ATCL boss.

Further, according to him, a friendly business environment and the Royal Tour initiatives seemed to have been attracting more investors and tourists.

This in turn, took high the demand for air transport.

“With the current trend, there is reason to be optimistic as we look to 2023. The future is bright for the aviation sector,” he said.

He also banked his hopes on future expansion plans the airline has in the works.

The airline plans to expand its operations to West Africa, Eastern Part of Africa, Middle East and later on, London.

Currently, ATCL flies to 24 destinations, including 14 domestic routes.

The airline, which currently has 11 aircraft in its fleet, is expected to receive five more, one of which will be for cargo, by next year.

Coastal Travels also enjoyed the year 2022 as the recovery speed in the third quarter post-Covid is promising.

The airline’s CEO, Maynard Mkumbwa, said the airline was operating at 75 percent of the pre-Covid capacity.

This, he explained, is a huge improvement compared to 25 percent and 45 percent in 2020 and 2021 respectively.

“I am optimistic we will return to the pre-Covid levels,” Mr Mkubwa exuded, adding that the ongoing bookings for the next year were encouraging.

To support their ambition, he revealed, the airline will in February 2023, receive a new brand Cessna 208 Caravan, bringing the total number of aircraft in its fleet to 16.

Currently, the airline has 10 Cessna 208s and five Pilatus (PC-12).

During the year 2022 Swissport Tanzania business also continued to gain stability.

The company’s CEO, Mr Mrisho Yassin, said his company recorded a 37 percent increase in the number of flights that they handled until November 2022, compared to the entire preceding year.

On the same note, under the period of review, the company’s cargo business jumped by one percent.

He linked the performance with relaxation of restrictions and increase in exports, with the industry now commanding 50:50 (export vs import).

More airlines were reported to add frequencies or restart routes as Covid-19 restrictions eased.

“The company’s ground handling and cargo business recovered from Covid-19 in 2021. In 2022 we did even better,” asserted Mr Yassin.

He went on adding: “Taking into consideration the ATCL’s expansion plans, the prospects for the 2023 are good.”

In the recent past, Mr Yassin is on record as saying: “The current business trend is good. We need to pray that the Covid-19 pandemic is not coming back.

To make it sustainable, the Swissport boss emphasised on the need for marketing business opportunities that the country is endowed with.

Tanzania Air Operators Association (TAOA) Executive Secretary Lathifa Sykes described 2022 as a better year after Corona.

However, she cautioned that the growth would be impeded by nuisance charges and multiplicity tax like Value Added Tax (VAT) on leased aircraft and inspection fees by the Tanzania Bureau of Standards (TBS).

“We are unsettled. VAT on leased aircraft is a threat to the aviation sector. It will make us more expensive than our peers on the continent who have an exemption,” she worried.

Ms Sykes also lamented the inspection charges of 0.6 percent of the value of the plane, saying it was unacceptable for the TBS to involve itself in the matter.

“TCAA are experts in inspecting aircraft,” she said, asking: “Why does TBS fit in? Where does TBS come from?”

She was of the view that the government should form a special task force that will bring together aviation stakeholders to discuss what to do.

“We need the business environment to be better to help retain existing investors and attract new ones,” said Ms Sykes.

In a swift rejoinder, the Permanent Secretary in the Ministry of Works and Transport (transport docket), Mr Gabriel Migire said he will, after Christmas, convene a meeting with stakeholders to discuss the challenges that the industry is grappling with and chart a way forward.

Noting that Tanzania is not an island, he said the government will ensure that the aviation industry operated as per global best practice.

“We as the government must be facilitative. We are here to facilitate and not frustrate investment,” said Mr Migire.

A renowned aviation expert with decades of experience, Mr Juma Fimbo, said the year 2023 will be a period of more recovery than expected.

“This reminds us to be prepared for further growth,” he said.

“We need to serve our customers better, or risk losing them to our neighbours.”

“The future for the aviation industry is bright. Let’s not disappoint our customers in this industry.”

On the other hand, it will be hard not only for Precision Air, but the entire industry and nation at large, to forget the year 2022 following the Precision Air’s plane crash into Lake Victoria early in November.

Efforts to get a comment from Precision Air proved futile.

Tanzania Civil Aviation Authority Consumer Consultative Council (TCAA CCC) Executive Secretary Innocent Kyara said, “The accident should be seen as a wake-up call for us to be prepared to minimise the effects.”

Despite the accident, aviation experts claim that flying today is safer than at any time in the past.

The International Civil Aviation Organization (ICAO) recently released its 2022 global safety report showing that last year, the aviation industry saw a 9.8 percent decrease in accidents compared to 2020.

The ICAO attributes the improvements in safety to the safety commitments shared across the industry.