26 November 2012

Tanzania: Increased Cross Border Trade Boosts Tanzania Aviation

The increase in Cross Border Trade has been termed as an enormous opportunity for the aviation industry to flourish within the region.

According to World Bank's 'Doing Business 2013' report estimated Tanzania to be ranked 122 by 2013 in the world compared to 119 in easiness of Doing Business across borders.

An expert in the aviation industry said that Tanzania, along with the rest of the African continent, are witnessing a significant expansion of the middle class and rising levels of disposable income.

"People are increasingly willing to spend their income on travel in pursuit of leisure or family visits, while trade across borders is also increasing, requiring an ability to travel greater distances to do business," the Fastjet's Chief Commercial Officer Mr. Richard Bodin said.

"These developments offer enormous opportunities for the aviation industry, particularly as the vast majority of African markets are currently under-served, he added while exclusively speaking to East African Business Week in Dar es Salaam last week.

He added, "That's why, we intend to position our airline (Fastjet) as a leading regional airline serving both the domestic and regional movement of passengers within Africa," Bodin said.

The arrival of more international airlines to the Tanzania market will also provide regional distribution for the increasing number of passengers arriving in Africa from intercontinental flights.

This will also be good news in the tourism industry which depends mainly on the arrival of the international tourists.

In the recent years, Tanzania witnessed the increase of flight services being offered by international carriers in the northern part of the country which are the main tourist's circuit.

Among the international carriers that recently inaugurated flight services in the country include Egypt air, Qatar Airways, Emirates and KLM who recently launched directly flight services to/from Kilimanjaro.

This has been translated by an expert in the airline industry as among the measures which forced most of the airlines to come-up with the techniques of so called low-cost airline model to enable them win the market share.

The low-cost airline model seeks to attract large numbers of additional passengers by offering significantly lower fares. The fares need to be low enough to persuade people who did not previously travel by air to do so, and others to travel more often.

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