ATCL new planes revive battle for skies

Dar es Salaam. The unveiling of two passenger planes by President John Magufuli on Wednesday has certainly rekindled the battle for the Tanzanian skies.

Analysts say the purchase of the two planes, which brings to three the number of airliners in the Air Tanzania Company Limited (ATCL) fleet, is not enough.

However, what could heighten the competition in the air transport in the country, which has limited demand, is President Magufuli’s determination to sprout up the ailing company and restore its dented glory.

When commissioning the two Canadian-made Bomberier Q400 NextGen airliners at the Julius Nyerere International Airport on Wednesday, the Head of State revealed that plans were afoot to purchase two more long haul aircrafts.

But while efforts to revive the national career are underway, competitors are not taking it lying down.

Precision Air, a major local airline, announced earlier this week that it was resuming flights to the Comoros.

This has traditionally been the only international route for ATCL.

Despite having only two planes, the company has been efficiently serving the route by using a leased Canadair CRJ 100s. Precision air plans will, therefore, increase competition in the route. The airline partially owned by Kenya Airways goes to more domestic destinations (about 11) than any other major airlines in the country.

Fastjet, another player in the local market, is also bracing up for the ensuing competition by moving from large jets to regional aircrafts to save better the domestic market. The company mainly serves the major destinations of Kilimanjaro, Mwanza and Mbeya.

Regional market

ATCL will soon launch flights to various regional destinations as directed by President Magufuli three days ago. This would also take the air market competition to the regional level as the airline seeks to take advantage of diminishing Kenya airways influence.

Yesterday, Rwandair received its first 244-seat Airbus A330-200. Another plane, Boeing B737-800, is expected in the neighbouring country next month. The Kigali government will reportedly purchase another airliner, a 274-seat Airbus A330-300, in November.

In May 2017, the airline will receive its fourth Boeing B737-800 plane, which will be plying the Johannesburg, Entebbe, Dar es Salaam, Lagos and Accra routes.

The new aicrafts will ply the Johannesburg, Entebbe, Dar es Salaam, Lagos and Accra routes. The aeroplanes will also operate on the long haul routes to Europe and Asia. The airlines’ most lucrative routes are Kigali to Entebbe, Juba, and Nairobi.

On July Ethiopian Airlines became the first African airline to take delivery of the Airbus A350, in a $2 billion deal that included smaller aircraft. The aeroplane flies on the Addis Ababa to Lagos route, and has also served the Kigali and Entebbe routes; the route is also served by Kenya Airways and RwandAir.

However, analysts are skeptical about whether demand for air travel in the region is high enough to sustain the fleet expansion programmes.

“Even large international airlines have had tumultuous times running a profitable business in the region. It is difficult to foresee a scenario where passenger demand will rise,” said Razia Khan, chief Africa economist at Standard Chartered Bank told NMG last month. If and when Atcl launches regional flights it will not only have to compete with more establish regional airlines such as Rwandair, Kenya Airways and Ethiopian Airlines, it will also have to beat the local airlines with a considereable regional presence, namely Precisionair and Fastjet.