Tanzanian govt to lease two new aircraft to Air Tanzania Company

Tanzanian govt to lease two new aircraft to Air Tanzania Company

Sept 20, 2016: Air Tanzania Company (ATCL) will be leased the two planes recently purchased by the Government Flight Agency (TGFA)for a reported $47 million (Sh103.4 billion), according to reports. The airline will enter into an agreement with TGFA to receive and operate the aircraft in a mutually beneficial business model. ATCL will provide crew, pay for insurance and maintain the planes. The first of the 76-seater planes is scheduled to arrive at Julius Nyerere International Airport from Canada this week. The second aircraft is expected in the last week of this month, suggest reports. The arrival of the planes will lay the ground for improved ATCL operations within the country as the company looks to enter into a competitive era with other local and regional carriers. The national carrier is reeling under debts said to total over Sh100 billion, and the two new planes will take the number of aircraft in its fleet to three. The firm currently has one leased plane in operation. The decision to deny ATCL ownership of the planes may suggest that the government is looking at a model that will not put the aircraft at risk should debtors, some of whom have gone to court, come knocking. It is also part of the reason the planes were paid for in full. The involvement of the TGFA is seen as deliberate measure to keep an eye on the planes bought by the government on condition that ATCL come up with a working business model that will quickly turn around its fortunes. The two new aircraft will take to six the number of planes under TGFA's ownership. The other four aircraft are mostly used to fly government VIPs.

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