Tanzania: Govt to Extend 450bn/ - to Support Atcl

THE government has asked the parliament to back its plan to release 450bn/- to the national flag-carrier as intervention to save the airline that has been greeted by losses and high operation costs.

Controller and Auditor General (CAG) placed the national carrier under the list of loss making government entities early this year after it recorded a loss of over 60bn/- in the FY2019/20.

Minister for Works and Transport Dr Leonard Chamuriho tabling the ministry's proposed budget estimates and expenditures for the 2021/22 fiscal year, said the government has allocated 450bn/- as strategic government support to the airline.

In addition, the Minister said, ATCL has allocated 56.61bn/- from its own sources to help provide air transport services within and outside the country.

Globally, airline industry has been left crippled largely due to the outbreak of the novel coronavirus pandemic. The Ministry of Works and Transport tabled its 3.747bn/- budget estimates detailing that the priority among other things will be to revive the national flag carrier.

The funding, according to the minister will help "continue making payment for two new Aircraft, Boeing 787-8 Dreamliner a passanger aircraft and a cargo aircraft -Boeing 767-300," the Minister said. Adding the fund will also help procure additional Dash 8 Q 400 and complete purchase of two Airbus A200-3000 aircrafts.

ATCL plans to build a cargo facility and an office in Dodoma. It is also eying to build ground handling service units in Mwanza, Kilimanjaro and Mbeya.

"ATCL will also expands its route to Lubumbashi, Kinshasa, and Nairobi as well as resume its direct flights to Johannesburg," Dr Chamuriho told the National Assembly.

Tanzania's national flag carrier is boosting with at least 12 fleet. The government said Monday that its Dash 8 Q300 is currently in Malta for major maintenance classified as 6C check projected to be completed next month.

The Minister said, however, the construction of two aircrafts that were purchased by the state could not be completed due to effects of COVID-19. It has been reported that the aircrafts, Dash 8 Q400 will now arrive in the country next month while two other Airbus (A220-300) are scheduled to land in August and October this year.

ATCL reported between July 2020 and April 2021 it transported a total of 389,419 passengers including 36,413 international passengers. The figure is down by 32 per cent from 563,516 passengers used the airline in 2019/20.

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