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George Sunguh Reports

Kenya Airways bids for Air Tanzania



George Sunguh
Kenya
African Shipping Review

per cent of the shares and that the operator would be required to fly the Tanzanian national flag on its tail even when the government becomes the minority shareholder after divestiture.

The fast-tracked process of the privatization of the airline would see the establishment of the two companies to be formed to replace ATC as part of the government to relinquish control of the airline to a new private partner.

The main company, to be known as Air Tanzania Ltd. will handle all the commercial activities of the airline while the second firm, Air Tanzania Holding Company, would deal with the settling of debts of the airline and disposing of non-assets.


Kenya Airways––one of Africa’s leading national carriers is geared for bigger things with the intended purchase of the ailing Air Tanzania.

Spurred by an impressive financial track record––thanks to efficient management stemming from the decision to get KLM as a strategic investor, Kenya Airways is today the only national airline worth speaking of in East Africa.
The airline –– dubbed the Pride of Africa––emerged from the ashes of East African Airways (EAA), which collapsed in 1976 following the demise of the then East African Community. Uganda Airlines, which is the other national carrier, established after EAA’s collapse, wound up operation long ago.

Kenya Airways, one of the eight prospective buyers of Air Tanzania Corporation is eyeing the majority shares in a bid being seen as aimed at tapping the growing lucrative tourism industry in East Africa. 

Other competitors in the bid are South Africa Airways (SAA), Nationwide, and Commair   both   of    South 
 


Africa, Gulf Air Falo––of the United Arab Emirates, Aero Asia International of Pakistan, Air Consult International of Ireland and Precision Air of Tanzania.

The strategic partner identified would also have a task of turning Dar es Salaam into a regional hub, taking the advantage of Tanzania’s economic growth brought about by a jump in tourism and foreign direct investments.

The Tanzanian government on February 2002 agreed to sell between 26-49 per cent of the shares of ATC to international airline operators as part of the divestiture of the national flag carrier before it was changed to 75 per cent shares.

The Parastatal Sector Reform Commission (PSRC) Chairman, Mr. John Rubambe told a local weekly recently that eight companies, which have expressed interest in becoming a strategic partner of ATC, would be allowed to buy up 75 per cent of the shares.

Rubambe said the government would retain 25

 

Rand Drop boosts SAA cargo figures

South African Airways Cargo increased its revenue 18.9% to a figure of R 1394 million, it reported in its annual financial results released in Johannesburg last month.

This was a major leap from the 2001 figure of R 1172 million, inspite of the problems arising within the airfreight industry following the September 11 crisis in the United States–– which saw majority of the global airlines declaring a downward trend in business.

SAA Cargo stated that the growth in revenue was mainly due to an increase in rates, which was offset by a decrease in tonnage flow. The depreciation of the rand also had a positive effect on Cargo’s revenue, said the report.

It indicated that while the change from Boeing to Airbus aircraft during the next decade would have little effect on cargo volumes internationally, where capacity would not change to any extent, the new Airbus aircraft would be able to carry containerized cargo on domestic and regional services in addition to long-haul schedules, which would in turn add substantially to the existing strong income base. Current domestic flights on smaller Boeing aircraft do not carry containers.

Safcor Panalpina clarifies on fuel surcharge

Freight Forwarders seem to be keen to explain their liability regarding the imposition of fuel surcharges on transport costs. A Safcor Panalpina spokesman explains that clients should understand that the surcharges are not generated or imposed by the company itself but are third party changes that form a part of the transport changes. He said that there is no option but to pay and recover it from the clients, just as surcharges charged by airlines have to be recovered. 
 

South African Airways Cargo extends express services


SAA Cargo has extended their international express services, which includes routing through from Johannesburg to Frankfurt and London, to Atlanta, to New York and on the return routes as well. This was done to stay on the cutting edge of service delivery as the South African market becomes more competitive. Towards this end, SAA Cargo also makes use of road feeder services for bulk cargo delivery and domestic stations. The local express service targets specific daytime flights with competitive rates being offered. Another addition is a small parcel and bulk express service offering priority retrieval at the destination. Livestock, human remains, dangerous goods and


valuable cargo are excluded from the new express service due to handling procedures that require longer lodgement times.

“As part of our strategy, SAA Cargo has been proactive by expanding the express service, offering greater speed and efficiency as well as cost effective delivery solutions,” says Tleli Makhetha, executive vice president and general manager of South African Airways Cargo.

SAA Cargo has also introduced ZEBRA––a bar––coding system that is being used to track goods at all SAA domestic airports––where clients are able to find out the exact location of their parcels- 24 hours of the day. 

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