Local investors have shown an impressive response to Precision Air Service’s initial public offering (IPO) of shares on the Dar es Salaam Stock Exchange. This was described in the Daily News as an indication of the growing interest in Tanzania in investing in shares.
The airline is selling its shares at TShs 475 to increase its capital and expose ownership of the firm to Tanzanians. The money raised is earmarked for the purchase of ground handling equipment and aircraft spare parts. The airline will remain with a 35.5% shareholding, Kenya Airways with 34.1%, and the public sector 30.4%. The airline plans to fly to 15 international and regional destinations in the next two years. It currently has a fleet of eleven aircraft serving 13 domestic and regional destinations, with five international routes (the Comoros, Entebbe, Johannesburg, Mombasa and Nairobi).
The national carrier, Air Tanzania Company Limited (ATCL), whose planes had been grounded for several months, resumed operations at the end of October, flying to two destinations –Tabora and Kigoma.
The new ATCL acting Director General, Mr Paul Chizi, said that the Tanzania Civil Aviation Authority (TCAA), had already granted ATCL an Air Operators Certificate after inspections proved that the company had fulfilled all the conditions. ATCL has positioned itself to compete in the aviation sector for the next five years.
The plan was unveiled by Deputy Minister for Transportation, Dr Athumani Mfutakamba, who said that the plan put ATCL at a good position to regain its lost glory in the aviation sector not only in Tanzania, but in the East African region as a whole. In the last budget the government set aside TShs 16.7 billion to enable ATCL to resume operations. The government has also promised to pay ATCL workers’ back salaries -The Citizen.