Aviation Industry: Precision air vs Air Tanzania vs Fastjet

Geza Ulole

JF-Expert Member
Joined
Oct 31, 2009
Posts
65,136
Reaction score
91,917
RECISION AIR ANNOUNCES DAILY FLIGHTS TO MBEYA

When on the 16th of January Precision Air, Tanzania’s premier airline, launched their flights to Mbeya’s revamped Songwe Airport, they cautiously announced that the new destination would be served four times a week, linking the commercial capital Dar es Salaam with this western Tanzanian municipality.
The airline’s strategy to connect the country by air, like it was never done before, however paid off beyond their wildest expectations and Linda Chiza, Precision Air’s Head of Marketing and Branding, yesterday announced to this correspondent that effective 12th of February the Mbeya route will be served daily with ATR turboprop aircraft.
At the same time she also confirmed that Mtwara, the oil and gas ‘capital’ of Tanzania, will see additional frequencies added as on that route too the demand was simply outstripping the available number of seats. As the airline operates both the ATR 42 and the ATR 72, there is added flexibility to move from the smaller 48 seat turboprop to the larger 70 seat version.
An aviation source in Dar es Salaam, contacted for a comment, had this to say: ‘Precision has a vision for the country. They have the right type of aircraft to fly to all those other towns where the big jets cannot land. They have more ATR’s on order and when they have them delivered they will fly more often to more places than any other airline in Tanzania’s history has ever done. Now that is what I call a service to the nation. Others come with big noise and then only fly between Dar and Kili or Mwanza. With Precision you fly to almost every corner of our country. And you get a full service on the plane and have no hidden cost when you buy your ticket at the advertised fare. Others make wild claims on fares and when you book you find a lot of extra charges or be told THAT FARE YOU NEED TO PREBOOK MANY WEEKS IN ADVANCE and then at the airport you pay extra still for other services like you baggage’.
Clearly Precision are doing something right somewhere as the airline continues to grow and the partnership with the region’s largest airline Kenya Airways has helped in many ways to become Tanzania’s own ‘Pride in the Sky’, pun fully intended of course. Watch this space for breaking and regular aviation news from the Eastern African region.
Wolfganghthome's Blog


3rd February 13
Boeing 737-200 burden to ATCL

Florian Kaijage
Ailing Air Tanzania Company Ltd (ATCL) has suspended operations of the leased Boeing 737-200 on the Dar es Salaam - Mwanza route and operates with a single plane, the Bombadier Dash 8-300 in a bid to cut operational costs, The Guardian on Sunday has reliably learnt.
Information reaching this paper this week had it that the national airline has reduced the frequency of the Boeing plane on the main route as its costs proved unbearable.
Well placed sources with the national carrier in Dar es Salaam affirmed that the plane, leased last October from a South African company, StarAirCargo (Pty) Ltd at a rate of $1,350 (Sh (2,160,000) for every block hour with a guarantee of 150 block hours a month, made its last trip to Mwanza early this week.
“We are operating with Dash 8 only for the past three days. It flies to Kigoma in the morning and in the evening it goes to Mwanza. I am told this is due to high costs of running the Boeing,” a well placed official indicated.
The source added: “This may be logical on costing grounds but on the other hand it poses a risk of losing out on the passengers due to different flying durations between Dar es Salaam and Mwanza for the two aircraft.”
Under normal circumstances the jet-engine Boeing 737-200 flies for 75 minutes whereas a propeller-engine Dash 8 spends about 140 minutes between the two cities.
The Guardian on Sunday has also established that ATCL is in the process or reviving its route to the Comoro islands using the Boeing aircraft. The last trip to the Indian Ocean islands was mid 2012 using Boeing 737-500 formerly leased from Aerovista of Lebanon. It was returned to the owners following a contractual dispute.
The ATCL Acting Commercial Director, Mwanamvua Ngocho confirmed yesterday on the phone that the route to the Comoros would be revived.
“The plan is still there and the revival date will be announced soon,” she stated.
But when asked about the reduced frequency of the Boeing for Mwanza route she replied: “Listen, why asking us on the type of aircraft we are operating with? Do you ask the same question to other airlines? We operate according to our commercial plans and we are not supposed to explain to anybody including you. These are our internal matters,” the acting director snapped.
“ATCL can operate with any aircraft which meets airworthiness requirements. What I know is that the Boeing flew to Mwanza last week and it also flew this week,” she further clarified.
When asked as to why the leased aircraft operates once a week while some of the charges such as fees, local transport and hotel bills for the crews accumulate on daily basis and the money to settle them are public funds, Ngocho responded:
“It doesn’t matter how many times the plane operates a week. It can be once, twice or otherwise. It depends on our plans. If the crew members are still in the country then there is work for them to do.”
She also accused this paper and the reporter of publishing information aimed at ‘sabotaging’ ATCL.
“A score of ATCL staff and I share the sentiment the airline is not at your heart as you are one of the people wishing this company to collapse,” she declared.
This paper has written extensively on the national carrier revealing to the public a number of issues on airline operations.
In October 2012 an exclusive report by this paper showed that the leased Boeing 737-200 would cost Sh1billion in three months, the duration for the lease agreement.
Another report on October 28, 2012 queried as to whether the leased plane could survive amid surging fuel prices as it read below;
As Air Tanzania eyes its golden old days with a leased Boeing 737-200 to operate domestic and regional routes, the biggest question is: Can this type of aircraft operate profitably amid surging fuel prices?
According to our survey, some aviation experts reveal stark reality to the contrary; the Boeing 737-200 consumes at least three tons of fuel for a single trip to Mwanza, a moderately short hop of approximately 75 minutes.
To put things in perspective, for a return trip between the two cities (Dar-Mwanza), the leased Boeing 737-200 would be consuming six tons of fuel, not to count other operating costs.
The 737-200 was succeeded in 1984 by the 737-300, a much quieter, larger and more economical aircraft boasting a host of new features and improvements – and whose fuel bill was a comforting 20 percent less than its predecessor.
The airline’s biggest competitor, PrecisionAir, operates a fleet of those relatively economical 737-300 planes for its domestic and regional routes.
At the current fuel price Sh1.6 million per tone (Sh1600 for a single litre of Jet fuel-A1), what these figures mean to ATCL is that the cash-strapped national airline would roughly spend Sh860.76 million within 90 days just by operating one domestic route of Dar-Mwanza.
In monetary values, ATCL would spend Sh4.8 million in fuel just to operate a single flight to Mwanza. If we factor in the leasing fee plus fuel cost without adding all other operational costs, the figures show that within three months, the national airline would dole out nearly Sh2 billion.
Fuel is the most crucial component in the airline business, and aviation experts estimate that it could consume up to 40 percent of its entire revenues – which is why most airlines have been going for fuel-efficient aircraft to curb the surging fuel costs.
In East and Southern Africa, for instance, most airlines have abandoned or replaced their 737-200 with 300, 400, 500 and 800 series to reduce fuel costs – and make sense in business.
The 737-200 can carry at least 106 passengers and crew. Introduced in February 1965, the 737 was originally envisioned as a 60- to 85-seater, before it was improved to accommodate 100 passengers and six crew.
Whereas the leasing fee of $1350 per block hour – with a tied guarantee of 150 block hours a month -- would cost a whopping $202,500 (Sh324 million) a month and $607,500 (Sh972, million) in three months, per diems for nine crew members would cost another 64,800 (103.68 million).

GUARDIAN ON SUNDAY
Boeing 737-200 burden to ATCL

[TABLE="class: contentpaneopen"]
[TR]
[TD="class: contentheading"]Sh2.4bn lawsuit for Fastjet?[/TD]
[TD="class: buttonheading, align: right"] Send to a friend[/TD]
[/TR]
[/TABLE]
[TABLE="class: contentpaneopen"]
[TR]
[TD="class: createdate"]Sunday, 03 February 2013 09:40[/TD]
[/TR]
[TR]
[TD]

Local representatives of Fastjet say the burden is not theirs to pay off. They say the matter is a legacy issue inherited when the carrier took over Fly540
By The Citizen Reporter and Agencies
Dar es Salaam. Freckle-faced budget airline Fastjet could be sued for over Sh2.4 billion ($1.5 million) by local tax authorities for failing to pay taxes for almost a year, UK daily The Telegraph reported Thursday.
The Tanzanian arm of the firm, which is listed at the London Stock Exchange, failed to pay payroll and property taxes, according to The Telegraph brief.
Sources told the UK paper that the company was found to owe the Tanzanian government billions in unpaid dues during a tax audit last month.
Local representatives of Fastjet say the burden is not theirs to pay off. They say the matter is a legacy issue inherited when the budget carrier took over local hauler Fly540 in June last year.
“[Fly540 chief executive] Don Smith has accumulated significant debt from Fly540, Fastjet has no liability for these,” says a Fastjest press note sent to The Citizen on Sunday.
Firm spokesperson Meg Muigai insists all money issues were settled during the buyout. Fastjet owes the Fly540 executive no other favours, she says in the statement.

“Mr Smith certified in a document signed by him on 24 July 2012 that other than specific liabilities as set in the document, there is no other liability or indebtedness due to him or any entity controlled by him.”
The Telegraph reported that Fastjet was also on the hook for missed airport departure charges accrued by its newly-bought asset between January and November last year.
These claims are the latest in an array of other demands and legal issues the embattled budget carrier is grappling with in East Africa.

The firm is embroiled in bitter disputes in Kenya and Uganda, according to British media.
In an earlier response, the UK paper quoted a Fastjet spokesperson who said the company “works closely with the Tanzanian government to properly address all historic issues relating to tax.”
Tax officials in Dar es Salaam have told The Citizen on Sunday they are unaware of any revenue backlog issues pertaining to the newly-launched no-frills carrier.

Senior Tanzania Revenue Authority (TRA) officer Lupinje Hamis said he was unaware of any tax issues, and could not comment on the Fastjet matter.
The firm shook the Tanzanian airline industry to the core with the introduction of ultra-cheap air travel in November last year.

It is positioning itself as a major contender in Africa, with an aggressive growth strategy that has seen it pursue partnerships and acquisition in West, Central and Southern Africa.

Sh2.4bn lawsuit for Fastjet?[/TD]
[/TR]
[/TABLE]

 
I would have advised the GOT parastatals to acquire shares in PW since i am pretty sure in the next two years the airline will be big with not less than 25 aircraft and flying overseas!
 
Funga tu hiyo ATCL peleka Macaptain Jeshini wakarushe ndege za kivita wafanyakazi wengine wote peleka shamba wakalime
 
Tabu zimeanza, tulikuwa tunaponea fastjet sasa mizengwe ya kodi inaanza. Nadhani????? hao ni wapinzani wao ambao nadhani kwa route ya Mwanza hawana chao- only with 75,000 Tsh you fly to mwanza-dar, compared to over 200,000 Ths the same route
 
I would have advised the GOT parastatals to acquire shares in PW since i am pretty sure in the next two years the airline will be big with not less than 25 aircraft and flying overseas!
Mkuu Geza, we Tanzanians, have some serious problems with our national pride!. When ATCL was looking for a strategic partner, PW and KQ stretched its hands to bail it out!, it was refused!. When PW issued its IPO at DSE, GOT shun away!.
ATC needs something like TZS 150 billions to bail it our, but our GOT did nothing!, and its doing nothing as of now!. We have lots of ambitions projects, some of them are just white elephants!. We have set aside TZS 400 billions as "safety net project", for hard cash to be distributed to poor families that survives with less than a $ a day!.

We have failed to set our priorities such as that purchase of an obsolate military radar and gulf stream while leaving behind the national flag carrier to die a natural death!.

Tanzania has many more surprises than what met the eyes!.
Pasco.
 
We unafikiri ukiweka mawaziri wenye roho mbaya ya ku-frustrate local businessmen kama wakina Malima kwenye madaraka matokeo yake nini? Husuda tu kwa wenzao waliofanikiwa! Sasa PW inakua kushinda maelezo na hata kama Oman business community wata-inject US$ 100 mio. bado hawatawaweza PW maana recapitalization ya PW sasa ni over US$ 200 mio.! Labda kama GOT ita-inject another US$ 100 mio. pia
 
Dawa pekee kwa ATC ni bail out ya GOT ili iweze kurudisha international flights ndizo where real money is!. Local na regional markets will soon be saturated small airlines. ATCL can not catch PW, with Fast Jet in ndio kabisa!. Nimefly kwenda Sumbawanga tuu huwezi amini I had to part with TZS 1,500,000 return ticket, wakati return ya J'burg ni US $300 tuu!. Sasa PW inazihodhi karibu routes zote local!.
Pasco.
 
hata international routes zina challenge zake tena zile hazihitaji ubabaishaji kama haupo kwenye alliance basi ndo kabisaa huwezi ku-compete imagine KQ made loss 2011-2012 with her size
 
Lugha ya kubail out ATC inanishangaza. Watakuwa bailed out mara ngapi kwa kodi zetu? Kama ni pride kuna gharama ambapo hiyo pride haiwi worth it - na ATC imeifikia gharama hiyo. Wacha ifilie mbali.
 
And now fastjet?hatakama ilo deni lipo na wamerithi lakini haya yote ni "afterthought tu" nilijua tu lile shirika hodhi la anga halitawaacha lakini ipo siku tu sio mishahara yetu inashia angani tukitaka kwenda kwetu
 
[h=3]PRECISION AIR'S PASSENGER UPLIFT GROWS[/h][h=3] [/h]Super brand Precision Air Services (Precision Plc) has exhibited consistent growth in both operations and financial performance. The Airline, recorded a significant 13 per cent growth in passenger numbers between April 2012 and end January 2013 even as the Tanzania air travel market continues to become more competitive with the coming of new players in the likes of low cost airlines.
Precision Air uplifted 750,762 passengers during the period, which is 13 per cent above the number of passengers recorded the previous year. The airline recorded 663,636 passengers in the year 2011-2012.
Speaking to press yesterday at the Airline's Headquarters in Dar es Salaam, Precision Air's Acting MD & CEO, Allen Sharra, revealed that from November 2012 to January 2013, his company airlifted 222,654 passengers, a growth of 6 per cent compared to the previous year, in which 209,696 passengers travelled by PW.
"The Tanzania air travel market has become more competitive with the introduction of new airlines. However Precision air's performance in terms of passenger uplift has continued to grow impressively.
"We have managed to achieve this due to the unmatched services we offer our customers, convenience destination frequencies of our schedules and our true Tanzanian hospitality we offer to our customers," said Sharra.

He noted that the company's overall, passenger numbers has to-date grown close to a million through a double digit annual percentage growth.
Mr. Sharra pointed that the Airline has since increased its frequencies to various routes to the likes of Mbeya, a route only launched early January.
"This penetration in the Southern region was received with thumbs up and only a month after its inauguration became necessary for Precision to review its operations and implement daily flights with only 90minutes travel time." he added.
He noted that further introduction of an early riser route from Arusha at 0730hrs and return 1630hrs facilitates business and individuals to return home the same day has also helped uplift the company's passenger numbers.
"The recent introduction of the evening flights to Mtwara departing Dar es Salaam 1600hrs has provided traffic relief and convenience opportunities to passenger moving to and from the region moves to 11 frequencies to Mtwara than the previous 7 per week," he said.
Latest regional penetration saw Precision Air reinstating its daily Kigoma flights which resumed at the end of January 2013.
The Airline is the first in the World to take delivery of the ATR 42-600 model November last year and has since received two (2) of its kind.
Currently the Airline has a total of 9 ATRs and 2 Boeing 737-300 aircrafts operating in 18 Precision Air's destinations.
NEWS | www.corporate-digest.com
 
[h=1]fastjet confirms 2 new domestic flight routes![/h]26th Feb '13 by fastjet Tanzania


[h=2]fastjet are once again jetting off to new destinations! We are excited to reveal two new domestic routes within Tanzania.[/h]Our first confirmed route is the highly requested and hugely popular route between Kilimanjaro to Mwanza. As well as this, you will now also be able to fly from Kilimanjaro to Zanzibar! Many of you have requested these routes, and we're excited to be able to now offer you these new daily flights.
Flights start on Monday 18[SUP]th[/SUP] March for both routes. fastjet will fly once daily each way on these new routes.
Tickets go on sale tomorrow morning at www.fastjet.com and are available to book from March 18th up to June 30th. One way flights start from just TSh32,000, excluding tax and charges on both these routes. It is our aim to bring low cost air travel to everyone in East Africa, so to be able to offer these popular routes at fastjet's low prices.
fastjet are very proud to be expanding our routes further across our first home in Tanzania. We've received huge support from all our customers, are committed to employing locally and enabling everyone to fly. We are now the most liked airline in East Africa with over 40,000 likes on Facebook! We look forward to welcoming all our new and existing customers onboard.
We're positively looking to increase our routes all the time, including introducing new international as well as domestic routes, and want to have a positive impact on low cost air travel in East Africa. We can only do this with your continued support, so thank you .
Further news on the international routes will be announced soon, so keep coming back to check our progress!
Happy flying!

fastjet confirms 2 new domestic flight routes! - Blog - Fastjet
 
[h=1]Facebook fans get 40% off flights[/h]27th Feb '13 by fastjet Tanzania


fastjet have been overwhelmed with the amount of support we've received from our fans on Facebook. Since launching in November, we now have over 40,000 likes, and as a result, are the most liked airline in East Africa!
We want to thank our amazing fans and celebrate all the support, along with the addition of our two new routes.
[h=2]So we're giving all our Facebook fans 40% off flights for the next 24 hours![/h]To get the code, visit our Facebook page from 10am on Wednesday 27th February. Don't forget to like us if you haven't already! www.facebook.com/fastjet
Simply enter the code from our Facebook page in the evouchers box when booking online, or quote the code when booking with one of our sales agents*
Valid for use from 10am Wednesday 27th February - 10am Thursday 28th February 2013, on all flights and all routes departing between March 4th and May 31st 2013.
Be sure to share this with all your friends and family so everyone can enjoy low cost flights with fastjet!
*Please note: When booking online, your 40% discount will be applied within your shopping basket when you check out. Normal booking windows apply to secure the discounted fare.

Facebook fans get 40% off flights - Blog - Fastjet
 

Big PW,, the bigger you grow, the more competitive you becomes and the most important you kill the National Airline.

It's time for Tanzanians to realize that business and politics are two different things. When Hon Mwakyembe sacked Paul Chizi for political reasons and put his uncle Lusajo, most of Tanzanians complimented him for good move to save the company. A lot of jibes were thrown to Mr Chizi's extinguished career is airline industry, by then ATCL had more than 28 Dar-Mwanza flights per week and was planning for expansion to Nairobi na Comoros with Boeing 737-500 aircraft carried 137 passengers. Now Hon Mwakyembe is eating his own words and his mission to kill ATCL is very successful

With FASTJET low costs and very competitive PW prices reaching as low as 149,000 Dar-Mwanza return ticket price, the ultimate fate for ATCL is death. Mwakyembe will put the final nail to ATCL coffin before his last day in office in 2015...
 
I can say much for ATCL as the situation is very obvious for her welfare. As for the remaining airlines in Tanzania, there is enough room to expand the air services. TCAA should clear other pending licenses on its desk to bring in more players in the market. This market is still promising in the country as there are number of untapped zones.
God bless you for bringing these blessings to the country.
 
stop being biased how about the uniforms he bought from China that were way above the price?
 
stop being biased how about the uniforms he bought from China that were way above the price?

That was politically motivated agenda. Uniforms account for very minor cost in airline operational costs. The guy brought the most fuel efficient airline in ATCL history while Mwakyembe's uncle brought the worst fuel efficient aircraft in history. And what about paying 64,800 in 3 months per diems for nine crew members while there are thousands of qualified Tanzanians in the job market?
 
Mwakyembe ni jembe acha kumchafua kisa jamaa yako Chiza katimuliwa! Financial discipline is the foundation of any business! unataka kuniambia hata kama Chiza angebaki ATCL wangehimili vishindo vya fastjet? ile airline inahitaji serious capital injection and prudent management (of which Chiza) did not have! na si blahblah
 
ATCL na ile ndege yao Boeing 737-500 walikuwa wameishakamata soko. Ndege ilikuwa inajaa daily, ndege ya kisasa ukipanda unatamani safari ya kurudi ifike haraka. Hili MSHIPA aliloleta mjomba wake Mwakyembe lina kelele kiasi kwamba wakati linaondoka au kutua airport huwa hapakaliki kwa noise pollution. Kwa kifupi ATCL Mwakyembe ameichinjia baharini kwa sababu ya ubinafsi wake na tabia ya kukurupuka. Nchi hii haihitaji viongozi wanaokurupuka kama Mwakyembe na Magufuli, inahitaji wachapakazi na wanaotumia weledi kufikia maamuzi.

Ngoja tumuone juhudi zake kuokoa Tazara na TRC zitafikia wapi maana hizo hazina hata mpinzani lakini ndo zinajifia.
 
Cookies are required to use this site. You must accept them to continue using the site. Learn more…