TANZANIA: Talks on ATCL take-over continuing, Kawambwa

The government has said talks with an Asian investor set to take over the management and operations of the cash-strapped national carrier, Air Tanzania Company Limited (ATCL) are still going on.

Speaking in an interview in Dar es Salaam recently, the Minister for
Infrastructure Development, Dr. Shukuru Kawambwa, said the government
has not postponed talks with the investor.

“We are still talking despite all the challenges which ATCL is facing. Once we are through we shall make it public“, he said.

Recently, the government released 2.2bn/- to help ATCL out of its current financial crisis.

The Permanent Secretary in the Ministry of Infrastructure Development
Omary Chambo was quoted as saying that the government would pay all
debts that ATCL owes South African Airways (SAA) before the new
investor takes over the running of the company.

“The government will clear all ATCL debts,“ he said. The new investor
is expected to inject money to revamp the company as well as bring in
new aircrafts.

ATCL has for years now been facing financial and operational problems.

Its planes were recently barred from flying for what were described as safety reasons.However, it has now resumed its services.

The money provided by the government helped the carrier to solve
capital problems and enable it resume operations, which stopped last
year due to lack of money and necessary equipment to keep it going.

The government decision was part of a strategy to reinstate the
operations of the national airline and later strengthen the company`s

With 300 workers, ATCL has 3 aircrafts, a situation which the
stakeholders described as unsatisfactory, saying that the number of
workers may have to be reduced to enable the company operate profitably.

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