Dar es Salaam. For any airline to break even, experts say, three elements are critical: a clear strategy, appropriate aircraft deployment and a skilled workforce.
Air Tanzania Company Limited (ATCL) remains under scrutiny after findings of a report by the Controller and Auditor General (CAG) showed that it is among the leading loss-making public entities.
ATCL’s managing director and CEO, Peter Ulanga, could not comment on the matter when reached by The Citizen yesterday because he was in a meeting but aviation experts argue that without these pillars, even heavy state investment may fail to deliver sustainable returns.
By June 2025, the airline had accumulated debts of about Sh748 billion. In the 2024/25 financial year, losses rose by 108 percent to Sh191.19 billion, pushing cumulative losses beyond Sh700 billion.
The figures come despite continued government support for salaries and operations, raising questions about the airline’s sustainability.
A former ATCL staff member and retired lecturer at the National Institute of Transport, Juma Fimbo, said performance depends on how well a strategy is designed and implemented. He noted that at times the airline has operated without clear direction.
“The last plan projected breaking even within five years, but consistency in execution has been a challenge,” he said.
He said earlier management structures lacked aviation expertise, affecting implementation. He cited RwandAir as an example of an airline that followed a structured plan and built capacity over time.
Mr Fimbo said ATCL’s losses reflect operational and structural challenges, including supply chain disruptions affecting aircraft parts and frequent schedule interruptions. He said workforce development is central to sustainability.
“You cannot build an airline overnight. Skills development must be part of the plan,” he said.
He added that aircraft acquisition must follow a clear utilisation strategy. “Aircraft are ordered over time. Without planning, investments may not deliver results,” he said.
Mr Fimbo also urged caution in interpreting audit findings, noting that sectors such as aviation require long-term investment.
Echoing this, JN Aviation Company lead consultant, Jimray Nangawe, said profitability depends on a clear business model and operational discipline.
“You must define your objectives. Private airlines focus on routes that generate revenue,” he said.
He said aircraft must be matched to routes based on demand and cost. Profitability depends on utilisation, passenger numbers and route performance.
“There is no single formula, but a well-managed airline can sustain itself within three to five years if it focuses on viable routes,” he said.
He warned against fleet mismatch, noting that large aircraft are unsuitable for short routes, while smaller aircraft are better suited for such markets.
CAG, Charles Kichere, attributed ATCL’s losses to rising operating costs, which increased by Sh134 billion to Sh675 billion, outpacing revenue growth.
The audit showed that 87 routes had an average passenger load factor of 55 percent, indicating gaps in route planning. Cargo operations were also affected, with most flights concentrated on short- and medium-haul routes, while aircraft were sometimes underutilised but still incurred costs.
The report also cited weak internal controls, including about Sh20 billion in ticket sales handled through agents without confirmation of issuance, as well as frequent flight delays and cancellations affecting revenue.
Mr Kichere said ATCL could improve performance through better route planning, stronger management systems and improved accountability.
ATCL was revived in 2016 as part of government efforts to rebuild the national carrier. Analysts say its progress will depend on aligning operations with a clear long-term strategy.
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