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Thursday, 22 August 2024

AIR TANZANIA FLEET EXPANSION YIELDS SIGNIFICANT ECONOMIC BENEFITS



Tanzania is rapidly establishing itself as a regional aviation hub, thanks to the expansion of Air Tanzania Company Limited’s (ATCL) fleet.

The on-going government investment in ATCL, which includes the addition of new aircraft, is already generating substantial economic benefits. Over the past three years, the airline has earned revenue of 182 million US dollars (about 492bn/-).



The latest addition to the fleet, a Boeing B787-8 Dreamliner, was officially received by Zanzibar President Dr. Hussein Mwinyi at Abeid Amani Karume International Airport (AAKIA) on Tuesday.

This new aircraft brings ATCL’s fleet number to 16 aircraft which include three B787-8 widebodies; one B767-300F widebody freighter; two B737-9 narrow bodies; four A220-300s; and six regional turboprops (one DHC-8-Q300 and five DHC-8-Q400s).



The Minister for Transport, Makame Mbarawa said the new B787-8 would allow ATCL to expand its network and frequencies.

The 262-seater would open new routes to Kinshasa N’Djili and Goma (DR Congo), Lagos (Nigeria), and Muscat (Oman).

The national flag carrier currently serves 13 domestic destinations. Its international services cover Entebbe (Uganda); Nairobi (Kenya); Bujumbura (Burundi); Moroni (Comoros); Lubumbashi (DR Congo); Ndola and Lusaka (Zambia); Harare (Zimbabwe); Mumbai (India); Guangzhou (China); and Dubai (UAE).

Economic Impact

Professor Godius Kahyarara, Permanent Secretary in the Ministry of Transport, said the increase of aircraft has enhanced the airline’s ability to serve both domestic and international destinations and increased revenue for the airline as well as the government through taxes.

This expansion has generated over 492bn/- in revenue over the past three years.

Prof. Kahyarara noted that this revenue is equivalent to the total value of the Bombardier aircraft initially purchased by the government.

He said that the investment in ATCL supports efforts to strengthening domestic and international routes, brings in foreign currency, and diversifies markets for local businesses.

Revenue and Tax Contributions

Under President Samia Suluhu Hassan’s leadership, ATCL has seen a remarkable increase in foreign currency generation, rising from an average of 17 million US dollars (about 45bn/-) when she assumed office in March 2021 to 70 million US dollars (about 189bn/-) last year. Additionally, ATCL has been contributing an average of 80bn/- annually in taxes.

Prof. Kahyarara attributed these achievements to the Third Five Years Development Programme, the Development Vision 2025 and the ruling party’s CCM Election Manifesto 2020-2025.

Regional Influence

ATCL’s expanded fleet positions it as the leading airline in the Central Corridor, serving countries that rely on the Dar es Salaam Port, including Rwanda, Uganda, Zambia, Malawi and the Democratic Republic of Congo (DRC). The airline’s operations are expected to bolster the Dar es Salaam Port and the Standard Gauge Railway (SGR), which will further connect Tanzania with neighbouring economies in the Eastern Africa Region.

Operational Capabilities

According to Prof. Kahyarara, the new Boeing B787-8 Dreamliner, capable of carrying 262 passengers and 20 tonnes of cargo, can cruise non-stop for 14 to 20 hours. Currently, ATCL operates long-haul routes to China, Dubai and India, in addition to several destinations within Africa.

The addition of more long-haul planes like the Dreamliner will reduce the need for trip cancellations, allow for more route expansions and enhance the airline’s overall operational efficiency.

Future Plans

ATCL’s Managing Director, Engineer Ladislaus Matindi, announced plans to extend long-haul routes to London, UK following on-going logistics. This expansion aims to serve more customers both domestically and internationally.

Economic and Tourism Benefits

Economist and investment banker Dr. Hildebrand Shayo remarked that the new aircraft strengthens ATCL’s ability to compete in the market, particularly on international routes. He noted that the aircraft’s efficiency and long-range capabilities could significantly boost Tanzania’s tourism sector by improving connectivity to major attractions like Serengeti National Park and Mount Kilimanjaro.

A businessman, Abdallah Omary added that the new aircraft would enhance trade opportunities by improving air connectivity. The B787-8 efficiency and capacity are expected to facilitate better trade links, benefiting sectors such as agriculture and manufacturing by providing better access to global markets.

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