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Tanzania: Budget Community Air Launches in TZ
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East African Business Week (Kampala)
28 January 2008
Posted to the web 28 January 2008
Dar es Salaam
A new air cargo and passenger service operator in the Tanzanian skies, Community Airlines, has been established "purposely for stimulating a new market in the country which has not yet been fully tapped."
Speaking to East African Business Week last week in Dar es Salaam, Mr. Paul Chizi, the airline's Chief Executive Officer, said the company is owned entirely by local shareholders.
"The name Community Airlines was adopted as a reflection of the Tanzanian community - which means it is a true people's choice, because of its specialized services and operations," Chizi said.
"It also symbolizes its fares structure and services, which are both competitive and affordable for members of the Tanzanian community whatever their economic capability."
The airline's single fare from Dar es Salaam to Kilimanjaro Airport is Tsh49,000, and Dar es Salaam-Mwanza: Tsh69,000 - including taxes.
By comparison, while Community Air charges Tsh178, 000 return ticket Dar-Mwanza, other airlines charge between Tsh200, 000 and 350,000-return for the same route.
Nonetheless, Chizi says, "despite charging low fares compared to our counterparts, the company has been able to make profit out of the business.
"Also, we decided to establish the company to satisfy a new market which remains largely untapped... to serve regular Tanzanians who were using buses to travel upcountry. That's the reason why we are charging low fares - and we feel that, by doing so, this will help to increase the national income," Chizi explained.
In an effort "to make Community Air the region's low-fare airline, the company is aiming at purchasing a new turbo-propelled plane that would serve the domestic market," the CEO said.
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With its modern 118-seat Boeing 737-200s plane - and after securing the requisite long distance service certificate - Community Air would next June or July start serving the international market with destinations that include Johannesburg, Dubai, Muscat, Brazzaville, Harare, and Lusaka. "We have already received a letter from the TCAA acknowledging receipt of our request for spreading our wings abroad," he said.
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| Copyright © 2008 East African Business Week. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections -- or for permission to republish or make other authorized use of this material, click here. | |||||||||||||||||||||||||||||
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