Why air travellers rise a no move

Dar es Salaam. A number of passengers flew through airports managed by the Tanzania Airports Authority (TAA) grew by 2.8 percent, a trend aviation experts say was not promising for the industry’s development.

The new TAA Airports Traffic Statistics- 2018’ Report shows passenger traffic rose to 3.473 million  during the year under review compared to 3.378 million recorded in the preceding year.

Some experts are blaming the situation on lack of sound competition in the sector.

In 2018, aircraft movements increased by 0.2 percent  to 146,593 compared to the previous year.

Some of the reasons for the increase are the revival of Air Tanzania Company Limited (ATCL), introduction of new routes and the increase of frequencies for earlier destination.

Globally, the number of passengers grew from 8.2 billion in 2017 to 8.8 billion in 2018 which is a 6.6 percent growth, the report says.

Asia Pacific grew by 8.2 percent, Europe 6.2 percent, North America 5.3 percent, Latin America and Caribbean 6.3 percent, Middle East 1.1 percent and Africa 9.6 per cent. The growth of 9.6 per cent in Africa has been attributed to continuous improvement in investment and tourism activities.

International aircraft movements increased by 2.7 percent, while domestic movements fell by 0.2 percent.

International aircraft movements contributed 14.4 percent of the total aircraft movement while the rest 85.6 percent was contributed by domestic movements in year 2018

In Tanzania, promotion of investments in the manufacturing sector and tourism; coupled with tourist attractions and the revival of ATCL are some of the factors which, according to the report, have contributed to the growth of passenger traffic.

Under the period of reference, domestic passengers grew by 4.4 percent, while the international passengers dropped by 1.4 percent, show the report.

The report provides information on the traffic performance of locations where aircraft flight operations take place, managed by TAA for the year 2018.

The report also provides a summary of traffic performance in few selected airport in East Africa, Africa and the world at large.

Aviation experts say the reported growth tells more need to be done if the industry is to be taken to the next level.

Former Precision Air’s network planning and strategy manager Mr Jimray Nangawe says the government should stimulate the economy for the people to continue travelling using air transport.

“A 2.8 growth is a good step, but not that much substantial,” said Mr Nangawe. He said the aviation sector need much more improvements to spur the industry’s growth.

He decried the existence of multiple regulators in the industry, who he says, impose a burden of fees to airlines which was not healthy for the sector.

In addition to TCAA, he says, airlines are also constantly regulated by the Occupational Safety and Health Administration (Osha), National Environment Management Council (NEMC), Tanzania Bureau of Standards (TBS) and Government Chemist Laboratory Authority (GCLA), each imposing own fees.

“Let TCAA remain a sole regulator of the industry because it understands the industry better,” he said.

He proposes more initiatives to attract investors in the sector. “We are surrounded by seven countries. We have the opportunities to trade with them.

“If we are to attract more investment in the industry, we should put in place regulations that do not hurt operators,” he said.

An aviation expert, Mr John Njawa said a 2.8 per cent was a small increase as per his expectations.

“To me if you look at it in terms of actual performance it is almost flat. A 2. 8 percent growth is just a statistical number, which signifies a very slow improvement,” he says. His expectation was that with the revival of ATCL, growth could be stimulated even further as new aircraft were purchased.

He says the current performance trend suggests that airlines are not competing for new travellers but scrambling for the same passenger base.

Currently there are 53 scheduled airlines operating at Julius Nyerere International Airport (JNIA), Abeid Amani Karume International Airport (AAKIA) and the Kilimanjaro International Airport (KIA).

Going the TCAA figures, ATCL accounted for the lion’s share of the domestic airlines at 22 percent in 2018, followed by Fastjet Airlines with 19.3 per cent. Other airlines with their percentage shares in brackets are Auric Air Services (19), Precision Air Services (16.3), Coastal Travels Ltd (8) and others (15.4).

President John Magufuli’s government has in a space of four years since assumed power purchased eight aircraft and leased them to ATCL.

The aircraft include, two Boeing 787-8 Dreamliner, two Airbus A220-300 and four Bombardiers.

“Let us wait for the 2019 report and see…may be the initiatives yielded more fruits during the period.

“Otherwise, we need to find out why passenger traffic is not growing significantly despite the government’s efforts to strengthen the aviation industry,” he says.

Aviation expert and a Dar es Salaam-based trainer, Mr Juma Fimbo, says a 2.8 percent growth was not something to celebrate.

“We need to take it as a challenge to attract more operators who would spur competition and down the fare so that even those using busses could shift to air transport. “We need to seriously consider the need of having Low Cost Carriers (LCCs). Let us give them incentives so that they could be attracted,” he proposes.

TCAA director general Hamza Johari says doors were open for talks with investors wishing to establish Low Cost Airlines. “We are doing all in our power to create favourable environments for all kind of airlines to operate in the country,” said Mr Johari.

TAA director general Julius Ndyamukama says infrastructure for low-cost airlines were there and that it was for airlines to grab the opportunity.

The once known low-cost airline Fastjet ceased operations last year after it was put under liquidation.

This came after it failed to pay some Sh2.02 billion it owed Swissport Tanzania for groundling handling services.

The validity of the Fastjet’s license expired on January 3 last year after it failed to meet the air transport regulator’s criteria including payment of license fees and debts amounting to Sh7 billion it owed TCAA and other service providers.

“Instead of putting blame on each other, let us all aviation stakeholders cling together, if we are to take the sector to the next level,” opined Mr Fimbo.

The Tanzania Air Operators Association (Taoa), executive secretary, Mr Lawrence Paul, said it was too early to count success of the revival of ATCL in 2018. “Regulations are very bold to expect so much from ATCL within such a short period of time,” noted Mr Paul.

“I am optimistic there will be a big positive difference in 2019 given that already ATCL was at its peak.” He banked his hopes on ATCL’s expansion of its both local and international networks.

On international routes, the International Air Transport Association (Iata) Operational Safety Audit (Iosa) certified airline flies to Mumbai, Comoro, Bujumbura, Entebbe, Lusaka and Harare.

Domestically, ATCL operates in Dar es Salaam, Mbeya, Bukoba, Dodoma, Kigoma, Kilimanjaro, Mtwara, Mwanza, Songea, Tabora, Iringa and Zanzibar.

But Mr Paul proposes that charges that make Tanzania expensive tourist destination should be avoided to attract more tourists and spur the growth of air transport sector.