ATCL to break even by 2023, says chief executive

Dar es Salaam. The revived Air Tanzania Company Limited (ATCL) says it expects to break even and be profitable from 2023.

The carrier’s chief executive, Mr Ladislaus Matindi, confirmed yesterday that the company had incorporated a strategic plan aimed at curbing losses resulting from huge inherited debts by 2020.

“We are now operating efficiently. Our revenues have increased markedly, and as the business environment continues to improve, we hope that we will break even come 2023 and start to be profitable consistently,” he said.

Mr Matindi also noted that the company had expanded its market share in the domestic air transport market to 24 per cent from 2.5 per cent in 2016.

“For two consecutive years, ATCL had only 2.5 per cent of the market share, but we now command 24 per cent, which can largely be attributed to the recent delivery of new aircraft,” he said.

Mr Matindi made the remarks when the ATCL management met with travel agents in the city.

It was revealed that the company’s gross revenues had increased to Sh4.5 billion per month by the end of last year from Sh700 million recorded the previous year.

“As the result of concerted efforts made by the management and financial support from the government, we have managed to reduce annual losses to Sh4.3 billion in 2017 from Sh14.2 billion the previous year,” he said.

Mr Matindi said the three Bombardier Q400 turboprop airliners and Boeing 787-8 Dreamliner were all in operation and plans were afoot to introduce flights to Mumbai in India and Guangzhou, China, in September and December, respectively.

“We are making these potential routes a priority due to low competition, but we are aware of the potential of European destinations. We hope to introduce flights to London by 2022,” he added.

The ATCL boss said flights between Dar es Salaam and London would be made possible by the arrival of a second Boeing 787-8 Dreamliner in early 2020.

“We are taking a cautious approach in establishing new routes because air transport is a tricky business. You cannot enter the market just because you have new planes,” he added.

ATCL currently operates on only one regional route between Dar es Salaam and the Comoros.