#PW| Precision Air - Official Thread [Archive]

èđđeůx

October 10th, 2011, 10:28 PM

http://www.precisionairtz.com/images/hometop_banner.jpg

Now that Precision Air is going public, I think it's time we have an official thread for news, photos and discussion about the airline!

Precision Air Ready for Share Sale
allAfrica (http://allafrica.com/stories/201110051062.html)
The company will offer 58,841,750 shares (about 30 per cent of the stakes) for sale at 475/- per share which is discounted by 11 per cent since the calculated value was 533/-," he said.

He said that the move aims to give majority citizens a chance to own a stake in the airline. The minimum number of shares per application will be 200 shares. Mr Shirima said 93.5 per cent of the 27.9bn/- expected to be raised will be used for capital expenditure and the 6.5 per cent balance for working capital enhancement.

With the money, the airline company expects to purchase five aircraft in a bid to extend its outreach to other African destinations including Democratic Republic of Congo (DRC) and Angola.

"We are very cautious in every step of investment to ensure the right target is reached. We will have both fleet and route expansion initially domestically and in the East and Central Africa before expanding beyond the continent," he added.

According to Mr Shirima, share application forms will be available at all the registered stock brokers in the country and in all Stanbic bank and CRDB bank branches across the country.

Kenya Airways acquired a minority 49 per cent shareholding in 2003 and from there, the transformation of the company's image into professionally run modern regional airline carrier began.

The shareholding structure after the offer for subscription will be 68,857,650 shares (about 35.52 per cent) to be owned by Mr Michael Shirima, the majority shareholder, 66,157,350 shares (34.13 per cent) for Kenya Airways Limited and 58,841,750 shares (30.35 per cent) for others.

Precision Air valued above KQDaily Nation (http://www.businessdailyafrica.com/Precision+Air+valued+above+KQ/-/539552/1240452/-/jxjwy/-/)
Precision Air’s IPO price of 475 Tanzania shillings per share (Sh28) gives the stock a higher valuation than all other counters listed at the Nairobi Stock Exchange, except that of Kenya Orchads.

The initial public offering (IPO) cost puts the airline’s price to earnings (P/E) ratio at 50, above that of all NSE stocks except Kenya Orchads’, whose P/E stands at 75. A high P/E ratio denotes a stock that has a high future growth potential, or one that is over-priced.

According to an analysis by Tanzania Securities Ltd, the price was based on the earnings potential and the historical performance of the firm.[/B] The Tanzanian airline, in which Kenya Airways own 49 per cent, opens its IPO on 7and closes on 28 October.

Foreign investors, including Kenyans, will get an allocation of 49 per cent of shares on sale. Precision Air will be selling 58,841,750 shares targeting TSh27.9 billion. If all the shares are taken up in the IPO, the airline’s total issued shares rise to about TSh194 million.

[B]The report noted that Tanzania’s tourism industry is booming while its mining industry is flourishing.

“Industry forecasts show Tanzania’s mineral industry particularly gold mining is likely to grow in the near future,” said the brokerage report.

The announcement of the offer results will be on November 11, while the crediting of the shares into the individual CDS accounts will be on November 25. Trading will start on December 8 this year.

The money will be used to modernise the airline’s ageing fleet as well as buying additional planes. It targets to have 17 planes within the next two years and 20 planes by 2015.

èđđeůx

October 10th, 2011, 10:33 PM

Some news from earlier this year...

Precision Air, Tanzania’s leading airline Unveils New Uniforms
Precision Press (http://www.precisionairtz.com/index.php?mact=News,cntnt01,detail,0&cntnt01articleid=3&cntnt01returnid=67)
http://www.precisionairtz.com/uploads/images/uniform1.jpg

Dar es Salaam February 24, 2011. Precision Air, Tanzania’s leading airline last night unveiled its new and vibrant uniform at a lavish cocktail event held at the prestigious Movenpick Hotel in Dar es Salaam.

Speaking during the event, Precision Air Managing Director and CEO- Mr. Alfonse Kioko said; “

“The new uniform is part of our continuing efforts to improve and modernize the airline. Just like we have new aircraft, it’s only fitting that we should also have a new uniform and attitude to go along.”

The new uniform has been designed and supplied by Boutique New City of Bangkok at a cost of USD 170,000.

There are three categories of the new uniform. The first category is for frontline staff, the second is for operations staff, engineers and pilots and the third is work wear. They will be worn by cabin crew, pilots, engineers, technicians, security and customer service staff among others.

èđđeůx

October 10th, 2011, 10:34 PM

The uniforms are too bright! But I do like the women's with skirt, the rest are bleh.

èđđeůx

October 11th, 2011, 08:02 AM

Precision Air introduces online payment option
Precision Press (http://www.precisionairtz.com/index.php?mact=News,cntnt01,detail,0&cntnt01articleid=2&cntnt01returnid=67)

Precision Air Tanzania’s leading airline has introduced a new and convenient method of booking and paying online for its customers who do not wish to leave the comfort of their home or office.

Speaking during a press conference at the Precision Air Headquarters in Dar es Salaam on Thursday March 5th, 2011, the airline’s Director of Commercial Mr. Phil Mwakitawa said; “This is a new product that allows Precision Air customers to be able to do their ticket payments online.”

“This product is mainly focused on email bookings. Today a customer who wishes to book and ticket via email does not need to pay a visit to Precision Air sales outlets or travel agents.” He added.

This means a customer can book via the Precision Air website and get a response of the booking itinerary with the cost of the itinerary via email. Once the customer confirms ready to pay, a payment link will be sent to the customer allowing him/her to process the payment online using VISA Credit or debit card. This way the customer receives his ticket while seated at his offices or home via email.

kiligoland

October 14th, 2011, 05:39 PM

Precision Air vows to extend wings wider

By CHRISTOPHER MAJALIWA, 13th October 2011 @ 13:00, Total Comments: 0, Hits: 100

PRECISION Air will be flying to 15 international and regional destinations, up from five at present, within the next two years, the airline's Financial Director, Mr Charles Ogola, said in Dar es Salaam on Thursday.

The airline currently flies to the Comoros, Entebbe, Johannesburg, Mombasa and Nairobi. It also serves ten local destinations. Local destinations are Arusha, Bukoba, Dar es Salaam, Kigoma, Kilimanjaro International Airport, Mtwara, Mwanza, Shinyanga, Tabora and Zanzibar,

Addressing a stakeholders' meeting on the progress of the airline's progress to go public, he presented several achievements recorded since it started operations in 1993.

''We are a major flight Business Company in Tanzania, among other things we had obtained a self-handling license from the Tanzania Civil Aviation Authority (TCCA) in October, 2009.

"In offering our shares to the public, our goal is to make the company grow faster and diversify its ownership," he said.

He said despite stiff competition in the aviation industry, the airline has increased the number of customers from 248,000 annually in 2004, to 667,000 so far this year. This represents an increase of 15 per cent annually.

The company's Managing Director and Chief Executive Mr Alfonce Kioko said that Precision was focused on increasing efficiency resulting in cost reduction.

''Despite being the third airline in Africa to embrace e-ticketing technology in 2006 we are staying awake to make our customers enjoy the services," Mr Kioko said.

The Board Chairman and Founder of Precision Air Mr Michael Shirima underscored the need of Tanzanians to buy shares and invest in the company.

The company has offered 58,841,750 shares for sale to the public at 475/- per share.

The minimum number of shares per application will be 200 shares. The exercise started on October 7, and was scheduled to close on October 28 with 59 per cent set to be sold to Tanzania nationals.

bantugbro

October 14th, 2011, 05:52 PM

kiligoland

October 14th, 2011, 06:41 PM

Mzee umenunua share ngapi? this look like a very promising investment^^

kabisa mkuu, ntaongea na mkuu tanzan tufanye investment ya kufa mtu, :lol:

tanzan

October 15th, 2011, 08:25 AM

kabisa mkuu, ntaongea na mkuu tanzan tufanye investment ya kufa mtu, :lol:

:lol:unabidi uwe na buda limekaa tuu...

tanzan

October 15th, 2011, 08:27 AM

kiligoland

October 21st, 2011, 08:05 AM

http://i1213.photobucket.com/albums/cc475/xiaohan1/17b7cefa70269509c5887edb738dbaefbe4b76e453c3361f2d0cd09d5aab4a944c2bf72ca67c48b949ed6c961834afda5815293.jpg

Kisumu Ndogo

October 24th, 2011, 06:15 AM

bantugbro

October 24th, 2011, 02:46 PM

Sielewi ni kwa madhumuni ipi(hapo mbeleni) taifa la Tanzania kuwepo mstari wa mbele kuwazuia wakenya kununua hisa katika makampuni kama haya ya Bongo japo 'sie' tumekuwa tukiwakubalia(mf. katika mauzo ya Safaricom, KCB..). Kwa dhana hii ninaonelea kuwa kwa kuitikia mwito wa kuuza hisa zake kutoka Precision Air, Kenya Airways lazima iwe imekuwa arm-twisted na serikali ya kitaifa ama wenye hisa 'wazito' TZA - Haya ni maoni yangu jinsi ninavyoitathmini swala hili.

Yako ni dhana potofu, Tanzania haikatazi/zuii wageni kununua hisa kwenye makampuni yaloorodheshwa katika soko la hisa la Dar. Kumbuka kuwa, mfumo wa uchumi wa Tanzania bado uko katika hatua za awali za kingia kwenye mfumo wa soko huria, tofauti na nchi kama Kenya ambayo imekuwa ikitumia uchumi wa wa soko huria toka zamani. Hivyo basi, hata sheria zinazoruhusu wageni kununua hisa katika soko la Dar bado zinaendelea kuratibiwa na muda si mrefu hayo yatakuwa ni historia.:cheers:

Kisumu Ndogo

October 25th, 2011, 10:28 PM

Yako ni dhana potofu, Tanzania haikatazi/zuii wageni kununua hisa kwenye makampuni yaloorodheshwa katika soko la hisa la Dar. Kumbuka kuwa, mfumo wa uchumi wa Tanzania bado uko katika hatua za awali za kingia kwenye mfumo wa soko huria, tofauti na nchi kama Kenya ambayo imekuwa ikitumia uchumi wa wa soko huria toka zamani. Hivyo basi, hata sheria zinazoruhusu wageni kununua hisa katika soko la Dar bado zinaendelea kuratibiwa na muda si mrefu hayo yatakuwa ni historia.:cheers:

Nachukua fursa hii kwanza kukukosoa hapo juu; hamna hata chembe mmoja ya dhana potuvu katika uelezi wangu na ndo maana nikalitilia mkazo kuwa haya(vizuizi vya kibiashara) yamefanyika hapo mbeleni kidogo. Ili kusisitiza shuhuda yangu hapa chini nitakupa nyuzi za utanda wazi ambazo zina-nakili ya habari hizi mengi ambayo pia yaliweza kuchapishwa kwa wino ulionooga kurasa ya mwanzo katika magazeti ya kibiashara haswa nchini Kenya na kwingineko.

Microfinance Investment Intelligence : August 2008
http://www.syminvest.com/market/news/microfinance/tanzania-bars-foreigners-from-its-hottest-public-share-sale/2008/8/13/1203

The Citizen : March 2011
http://thecitizen.co.tz/business/14-international-business/9023-kenyans-locked-out-of-ipo.html

World Bank : July 2011
http://web.worldbank.org/WBSITE/EXTERNAL/COUNTRIES/AFRICAEXT/EXTAFRREGTOPTRADE/0,,contentMDK:22962171~pagePK:34004173~piPK:34003707~theSitePK:502469~isCURL:Y,00.html

Hata hivyo nitakupa upatu kwa kueleza kinaga uiano kati ya maendeleo ya chumi zinazotengenea ubepari na ufunguzi wa soko huria Tanzania kwa muktadha wa nyakati.

kiligoland

October 27th, 2011, 06:57 AM

THE sale of Precision Air shares at the primary market has attracted a good number of buyers and most stockbrokers are optimistic the exercise would be oversubscribed based on the current positive trend.

Zan Securities Chief Executive Officer, Mr Raphael Masumbuko said the IPO has attracted a number of new investors as far as from Ghana.

He said that there are also indications that the pension funds will enter the race at the eleventh hour after studying the market trend.

The IPO ends on Friday. “The progress is good and we are optimistic it will be oversubscribed,” Mr Masumbuko told the ‘Daily News’ on Wednesday.

He said investors from Zanzibar have also bought shares, signifying that the IPO was well perceived.

However, brokers, who generally constitute the biggest sales of IPO, said they could not give figures of oversubscription until the closing of the exercise, as shares are still being sold by commercial banks.

Tanzania Securities Business Analyst, Mr Joel Joseph said the sale trend is progressing well so far. “Corporate buyers normally show up at the eleventh hour after studying the market trend,” Mr Joseph said.

The airline, co-owned by Kenya Airways, announced its intention to raise 28bn/- about three weeks ago through public to finance fleet modernisation as well as its network expansion.

The IPO which sells at 475/-, is offering 58,841,750 shares, which is about 30 per cent of the stake. After the IPO the airline will remain with 35.52 per cent shareholding, Kenya Airways with 34.13 per cent and the public 30.35 per cent.

The airliner plans to fly to 15 international and regional destinations in the next two years, up from five at present. The airline currently flies to the Comoros, Entebbe (Uganda) , Johannesburg (South Africa), Mombasa and Nairobi (Kenya).

It also serves ten local destinations, namely Arusha, Bukoba, Dar es Salaam, Kigoma, Kilimanjaro, Mtwara, Mwanza, Shinyanga, Tabora and Zanzibar.

The airline also plans to introduce flights to Zambia, Mozambique and the Democratic Republic of Congo (DRC). Currently, it has a fleet of eleven aircraft serving 13 domestic and regional destinations.

http://www.dailynews.co.tz/business/?n=24891&cat=business

kiligoland

October 27th, 2011, 07:02 AM

edit

bantugbro

November 3rd, 2011, 02:57 PM

Nachukua fursa hii kwanza kukukosoa hapo juu; hamna hata chembe mmoja ya dhana potuvu katika uelezi wangu na ndo maana nikalitilia mkazo kuwa haya(vizuizi vya kibiashara) yamefanyika hapo mbeleni kidogo. Ili kusisitiza shuhuda yangu hapa chini nitakupa nyuzi za utanda wazi ambazo zina-nakili ya habari hizi mengi ambayo pia yaliweza kuchapishwa kwa wino ulionooga kurasa ya mwanzo katika magazeti ya kibiashara haswa nchini Kenya na kwingineko.

Microfinance Investment Intelligence : August 2008
http://www.syminvest.com/market/news/microfinance/tanzania-bars-foreigners-from-its-hottest-public-share-sale/2008/8/13/1203

The Citizen : March 2011
http://thecitizen.co.tz/business/14-international-business/9023-kenyans-locked-out-of-ipo.html

World Bank : July 2011
http://web.worldbank.org/WBSITE/EXTERNAL/COUNTRIES/AFRICAEXT/EXTAFRREGTOPTRADE/0,,contentMDK:22962171~pagePK:34004173~piPK:34003707~theSitePK:502469~isCURL:Y,00.html

Hata hivyo nitakupa upatu kwa kueleza kinaga uiano kati ya maendeleo ya chumi zinazotengenea ubepari na ufunguzi wa soko huria Tanzania kwa muktadha wa nyakati.

Jibu lako linapatikana kwenye kiunganishi kifuatacho...
http://www.theeastafrican.co.ke/news/Tanzania+opens+up+capital+account+to+ease+trade+/-/2558/1264400/-/vf5jddz/-/index.html

kiligoland

November 3rd, 2011, 03:07 PM

wakuu Twiga mzembe kaota mbawa, mnaonaje? :banana::banana::banana:

bantugbro

November 3rd, 2011, 04:55 PM

wakuu Twiga mzembe kaota mbawa, mnaonaje? :banana::banana::banana:

Hakawii kuchoka, Twiga mmoja hatoshi ilitakiwa waanze na atleast wa5 hivi..:ohno:

kiligoland

November 8th, 2011, 04:56 PM

PW BIRD

http://farm6.static.flickr.com/5010/5310050104_cabdfc3b35_b.jpg (http://www.flickr.com/photos/stevesaviationphotos/5310050104/)
5H-PAZ (http://www.flickr.com/photos/stevesaviationphotos/5310050104/) by stevesaviation (http://www.flickr.com/people/stevesaviationphotos/), on Flickr

kiligoland

November 8th, 2011, 04:59 PM

http://farm6.static.flickr.com/5173/5429259902_b49aaf5683_b.jpg (http://www.flickr.com/photos/stevesaviationphotos/5429259902/)
5H-PWF (http://www.flickr.com/photos/stevesaviationphotos/5429259902/) by stevesaviation (http://www.flickr.com/people/stevesaviationphotos/), on Flickr

kiligoland

November 8th, 2011, 05:00 PM

http://farm6.static.flickr.com/5093/5427342755_bc226ec563_b.jpg (http://www.flickr.com/photos/stevesaviationphotos/5427342755/)
5H-PWD (http://www.flickr.com/photos/stevesaviationphotos/5427342755/) by stevesaviation (http://www.flickr.com/people/stevesaviationphotos/), on Flickr

èđđeůx

November 11th, 2011, 05:26 AM

It is mentioned that Precision expect to purchase 5 aircrafts...what type of aircraft they planning to purchase for their expansion?
Didn't say, but I think Embraer's E-190 Jets would be a nice buy. They're lighter on fuel cost and would be great for regional routes that extremely busy.

kiligoland

November 29th, 2011, 10:51 AM

Precision Air makes second attempt to raise capital

http://www.dailynews.co.tz/business/?n=25895&cat=business

Precision Air (PW) airline has submitted another financial plan to the Capital Market and Securities Authority (CMSA) after the first one raised 11.84bn/- out of the projected
28bn/-.

This follows an effort to raise capital for expansion through public offer hit turbulence after getting less than half of what they planned for; but the airline said it will go ahead with its listing at the Dar es Salaam Stock Exchange (DSE) as planned in mid next month.

A statement issued by Precision Air’s Managing Director, Mr Alfonse Kioko last Wednesday, said a total of 6,667 investors participated in the IPO, mostly individuals, which the airline greeted with pleasure.

“We have also presented to the regulator our financial plan outlining how the proceeds will be invested and how the funding gap will be filled so as to facilitate the realisation of the airline’s business strategy,” he said.

Despite the under subscription, the airline said, it was pleased as extending the ownership of the leading carrier to the public, was the other aim of the offer,apart from raising capital. “The number of Tanzania participants is true of the trust and confidence that the public has in the company…our fleet expansion programme and network growth strategy remain on course,” the CEO said.

Mr Kioko added: “We have also embarked on a vigorous customer care programme to improve our service.” Capital market analysts said passenger mishandling and on time performing (OTP), meaning taking off and landing on time, were areas where Precision Air performs badly to discourage investors from buying the airline’s shares.

“Under normal circumstances, no one would like to buy shares in the same company that a fortnight ago mishandled him,” a stockbroker, who preferred anonymity, said. “That has affected the relationship between the company and its customers,” he claimed.

Apart from the TBL min-IPO which came immediately after Precision Air, stockbrokers from day one were skeptical whether the airline would attract enough investors as its debt portfolio is too high pointing to low dividends in the next two to five years. “Stock investors, in the country, are driven by gain on dividends.

This is the fact that locked out most of the institutional investors to participate in the Precision Air IPO...fearing low return on investment in short and medium term,” another stockbroker said.

The airline’s prospectus shows that at the end of April 2011, the debt stock stood at 68.63bn/-. The debt has pushed up the cost of finance thus eating the profit margin to lower the dividend gain.

Despite generating gross profit of 43.48bn/-, the airline net profit was reduced to 1.28bn/- due to finance and administration costs that ate 7.63bn/- and 30.77bn/- respectively.

On the other hand, brokers also were skeptical on the fact that the airline industry is unpredictable and given the state of the economy—high inflation and the shilling’s freefall whereby in such scenario, the first to be affected is the airline industry.

During the global financial crisis, according to PW prospectus, in 2009, the number of passengers, international and domestic routes grew by negative seven to 2.2 million. The following year the number of passengers climbed by 11 per cent to 2.4 million or 200,000 more.

The shilling depreciation plus high global oil prices pushed up the cost of doing business massively. This cost, in normal circumstances has to be below 30 per cent of the total airline cost.

Above that, it reduced airline profitability level; thus affecting share return yield. “Increase in fuel price will increase the company’s expenses and hence reduce the company’s profitability,” the airline says in the prospectus.

Second, the investors saw the competition growing. In 2010 the airline controlled almost 60 per cent market share and the immediate rival, Air Tanzania Company Limited controlled merely six per cent with only a single aircraft in operation.

The prospectus neither ignores to show the current market competition status after the arrival of Fly 540 nor the coming of the new airlines. This puts off would-be-investors as they want to know their investment fate if the market share decreases in relation to dividends.

Come next January, the Tanzania sky will have about seven big capacity airlines operating in major towns and cities of Dar es Salaam, Arusha, Mwanza, Kigoma, Mtwara, Kilimanjaro, Kagera, Shinyanga and Tabora.

“The sky would be the limit,” Tanzania Civil Aviation Authority (TCAA) Director General, Mr Fadhili Manongi, said in response to whether they did not think the skies were getting rather crowded to warrant limiting the operators.

“We are not considering limiting the number of licences at this stage as many operators are not stable (while) others are still small to bring the required competition.” Currently there are 27 operators of various capacities for scheduled and non-scheduled flights.

Seeking to operate scheduled passenger services are newcomers - Dar es Salaam’s based Air Africa International and Zanzibar’s Zan Aviation while Air Zara and Auric Air seek to renew their licences.

Nevertheless, Precision Air is a good company to buy for long term investors as it would take time for its immediate rival to catch up and overtake its success. To show its commitment to its investors, Mr Kioko said, Precision Air would be listed on the Dar es Salaam Stock Exchange as initially planned on December 15.

But PW wrote history for firms which failed to raise the intended capital in the three weeks of IPO’s duration. It becomes the third failed IPO on the first three-week after TOL and NICOL primary listings in 1998 and 2008 were extended to three and two weeks respectively.

If the airline is listed as planned, it would become the first company in the DSE’s 13 year history to go on the secondary market subscribed by less than 50 per cent.

Kigali_Paris

December 8th, 2011, 06:56 PM

Hi

Here is the link to the latest trip report covering Precision Air (Economy and Business class):

http://www.airliners.net/aviation-forums/trip_reports/read.main/204340/ (http://www.airliners.net/aviation-forums/trip_reports/read.main/204340/)

PS: triple kudos to TANZAN, who helped me a lot :yes:

èđđeůx

December 12th, 2011, 05:37 AM

Hey you guys I'm wayyy late but Air Tanzania is back in business.:banana:

Only 1 airplane currently in its fleet:(..but hey more to come! Let's hope it survives this time around....Support ya national carrier!:yes:

Air Tanzania plans Bombardier purchases
eTurbo News (http://www.eturbonews.com/26585/air-tanzania-plans-bombardier-purchases)

Within hours of the announcement that Precision Air’s IPO had attracted less than 43 percent of a share take up, Air Tanzania (ATCL) made waves with an announcement that they would hold more talks with Canadian manufacturer Bombardier for the purchase of up to 8 aircraft.

Presently, ATCL operates a single Bombardier Q300 turboprop aircraft but has stated the intention of purchasing a range of jets with the CRJ200 and the larger CRJ700 series at the forefront of the plans. Several airlines in the wider region are already flying these "city jets" successfully, and the size of 50 seats for the CRJ200 is considered to be just right for an airline in a market already strongly competed over by private-sector rivals and regional carriers.

ATCL would require guarantees though from the Tanzanian government, if a major deal is to be struck, though the Canadian export agency has already indicated they would be keen to support a package, as long as a government guarantee from Dar es Salaam would be given for the purchase of both pre-owned, as well as brand-new planes.

tanzan

December 12th, 2011, 08:18 AM

TZBoy

December 22nd, 2011, 09:37 AM

PRECISION Air Services (PAS) has reaffirmed its commitment to enhance the performance and growth of the company to ensure realization of hefty returns on the investors’ money.

The remarks were made in Dar es Salaam on Wednesday by the PAS Board Chairman and Founder, Mr Michael Shirima, during the official listing of the airline at the Dar es Salaam Stock Exchange (DSE).

“We are back to work and the task ahead is to enhance the performance of the airline in order to impress the present investors and attract new investments”, said Mr Shirima. He said the number of Tanzanians who took part in the Initial Public Offering (IPO) is a true testimony of the trust and confidence the public has in the company.

“And most important of all are the investors who, with effect from today (yesterday) event have become shareholders of the airline”, he said. Mr Shirima said, the PAS shares started to trade on Wednesday at a price of 500/-, marking a good beginning at the equity market.

He said a total of 7,056 investors took part in the IPO and the airline managed to raise 12bn/- subscribed by 43.18 per cent, most of which were taken by the indigenous both local and corporate entities as intended by the firm.

The Minister for Transport, Mr Omary Nundu, who was the guest of honour at the occasion, said it was worthwhile for the aviation industry and stakeholders to be reminded that air transport was not only good business for investors but it does contribute positively to the national economy.

As Tanzania offers favourable geographical position and its endowment with unique natural attractions, Mr Nundu welcomed more investors to venture into the sector to boost its growth and contribution to the economy.

He reiterated the government’s commitments to continue providing favourable environment for the aviation industry including improvement of infrastructure to ensure efficient operations.

He cited projects on card to rehabilitate and modernize airport infrastructure as Kagera, Kigoma, Arusha, Mwanza, the Julius Nyerere International Airport (JNIA) and Kilimanjaro International Airport (KIA).

“This is short term solution but the government is fully committed to ensure the aviation industry operates smoothly”, he said. He said the government is planning for long-term investments focusing on 50 years to come to accommodate the ever increasing demand for aviation services in the country.

Speaking earlier, the DSE Governing Council Chairman, Mr Pius Maneno, said PAS becomes the first airliner to be listed and second from purely private owned firm at the bourse. This, he said, implies the firm’s commitment not only serving the country but also to provide a chance for citizens to be shareholders.

By SEBASTIAN MRINDOKO, 21st December 2011
http://www.dailynews.co.tz/business/?n=26594&cat=business

TZBoy

December 22nd, 2011, 09:39 AM

Information was confirmed overnight that Tanzanias leading airline, Precision Air, has put aside their disappointing IPO performance and are set to stay the course of expansion as announced earlier in the year with an order for a further 5 ATR aircraft.

A usually reliable source has confirmed to this correspondent last night that the airline has ordered ATRs latest models, four ATR 42-600 and one ATR 72-600. Delivery of the ATR 42s is due to start in late 2012 while the 68 seater ATR 72 is expected to be delivered by early 2014.

The airline is flying already a mix of 9 ATR aircraft, mostly on their domestic schedules but also into nearer regional destinations like Entebbe, and when the new order is delivered Precision will have become Africas leading customer for the French manufacturer.

The move is also seen as a direct response by the airline to the Tanzanian governments declared intention to revive Air Tanzania, which currently flies a single Bombardier Q300 and with the main battleground being the domestic routes across this sprawling East African country, Precision will be well prepared to offer more flights to more destinations, in Tanzania and the region, than any of their competitors. More happy landings it is then for Precision come 2012.

Posted by Wolfgang's East Africa and Indian Ocean Tourism reports
http://wolfganghthome.wordpress.com/

kiligoland

December 22nd, 2011, 10:58 AM

Tanzania’s Precision Air Services signs contract for 5 ATR -600s

http://i1213.photobucket.com/albums/cc475/xiaohan1/ATR-42-600-PrecisionAirServices.jpg

Wednesday 21 December 2011

The airline will introduce four ATR 42-600s and one ATR 72-600 and will become the largest operator of ATRs in Africa
Tanzanian carrier Precision Air Services and ATR today announced the signature of a contract for the purchase of four ATR 42-600s and one ATR 72-600 aircraft. The deal is valued at US$ 98 million. Delivery of the 50-seat ATR 42-600s will start in late 2012. The ATR 72-600 will be delivered in 2014.
With this acquisition, Precision Air Services will bring its fleet of ATRs up to 14 aircraft, thus becoming the largest operator of ATR aircraft in Africa. The current fleet of ATRs of Precision Air Services includes 5 ATR 72-500s, 2 ATR 42-500s and 2 ATR 42-300s.
With the introduction of these 5 brand new ATR ‘-600 series’ aircraft, the carrier will further develop its regional network, adding new routes and frequencies to its domestic market. This fleet expansion will allow the airline to offer its passengers the advantages and comfort of the new ATR -600 series ‘Armonia’ cabin.
Commenting on the deal, Michael Shirima, the Board of Directors Chairman of Precision Air Services declared: “We have been operating ATR aircraft for years, and we are totally convinced of their suitability for our regional routes. The ATRs are perfectly adapted to the hot climate in Africa, and feature optimal performance in smaller airfields and unpaved runways. Also, they provide us the lowest operating costs, thus strongly contributing to the development of regional aviation in our country”.

Alfonse Kioko, Group Managing Director and CEO of Precision Air, commented: "The very low fuel burn and the high dispatch reliability of the ATR aircraft, are helping us to maintain the level of ticket price necessary for the very strong competition in our market".

ATR and Precision Air Services set up in 2006 a joint-partnership for certified aeronautical maintenance training for some selected Tanzanian students. Each student spends three years being trained at the Aeronautical Technical School in Toulouse, France, and then joins Precision Air Services’ maintenance crew in Dar es Salaam, Tanzania. So far, 12 students have already completed their training and joined the airline. Other additional 24 students are currently being trained or programmed in the coming years.Filippo Bagnato, Chief Executive Officer of ATR, declared: “We are pleased to introduce the new ATR -600s in Eastern Africa, as well as to receive again the confidence of Precision Air Services. We have developed a strong partnership with the airline across time, which includes also the development of training programmes for maintenance and piloting activities. We are convinced that such fruitful relationship will be further strengthening in the coming years”.

ATR has today 110 aircraft in operation and on order with African and Middle East carriers and is established in 25 countries of the region.

About ATR 42-600:

Passenger capacity: 46-50 seats
Engines: Pratt & Whitney 127M
Maximum power at take-off: 2,160 horse power per engine
Maximum weight at take-off: 18,600 Kg
Maximum load: 5,500 Kg
Maximum range with full passenger load: 801 nautical miles (1,483 Km)

About the ATR 72-600:

Passenger capacity: 68-74 seats
Engines: Pratt & Whitney 127M
Maximum power at take-off: 2,750 horse power per engine
Maximum weight at take-off: 23,000 Kg
Maximum load: 7,500 Kg
Maximum range with full passenger load: 899 nautical miles (1,665 Km)

About Precision Air Services

Precision Air Services was established in 1993. The airline has since increased its frequencies and capacity with its current fleet of nine ATR aircraft, including two 48-seater ATR 42-320, five 68-seater ATR 72-500 and two 48-seater ATR 42-500.The airline offers the widest connections to all major towns in Tanzania and, regionally, to Kenya, Uganda and Comoros.
About ATR

Formed in 1981, ATR has grown to become the world’s leading manufacturer of advanced 50 to 74 seat regional turboprop aircraft, has sold more than 1,200 aircraft and has 175 operators in 94 countries. ATR operators have cumulated more than 21 million flights. ATR is a joint venture and equal partnership between major European aerospace companies Alenia Aeronautica (a Finmeccanica company) and EADS. Its headquarters are in Toulouse, France. ATR is certified ISO 14001, the worldwide standard for environmental management and sustainability.

ATR Press Contact
David Vargas
Tel: +33 5 62 21 66 14
E-mail: david.vargas@atr.fr

http://www.atraircraft.com/newsroom/press-releases-details-1169-en.html

kiligoland

December 30th, 2011, 06:10 AM

Precision Air shares appreciate at the bourse after lax IPO

PRECISION Air Services Plc (PAS) had a good start at the equity market recording a price increase of 42.11 per cent to 495/- from 475/- offered at the Initial Public Offer (IPO).

According to a weekly market commentary by Tanzania Securities Limited (TSL), the PAS counter last week traded 6,000 shares recording a turnover of 2.9m/-.
“It is a good start for the PAS to trade at the equity market but we hope the situation to pick up in January after the year end festive season,” said Juventus Simon, market analyst with Orbit Securities Company Limited during an interview on Wednesday in Dar es Salaam.

Mr Simon said most investors are currently on short leave for the year end festivals but have promised to show up early January that would make the trading of PAS shares vibrant.
It is just a week since when DSE listed the PAS which added a market capitalization value of 92.08bn/-.

This makes the total equity market capitalization at DSE to move up to 11,573.18bn/- comprising of 17 listed companies. A total of 7,056 investors took part in the IPO and the airline managed to raise 12bn/- or an equivalent of 43.18 percent most of which was taken by both local and corporate entities as intended by the firm. The PAS offered 58,841,750 shares during the four-weeks of IPO, which represented just 30 per cent of 193,856,750 shares at the rapidly growing local airliner. And according to the company’s prospectus, 93.5 per cent of the net earnings were to be spent for capital expenditure, while 6.5 per cent would be utilised as working capital enhancement.

http://www.dailynews.co.tz/business/?n=26781&cat=business

bantugbro

January 1st, 2012, 01:16 PM

There are 18 listed companies at the DSE now, this is after the ABG cross-listing!

tanzan

January 14th, 2012, 09:31 AM

This is the time Precision need to expand esp. international routes. If Precision can have new feeder routes like Lusaka,Harare,Lubumbashi/Kinshasa,Lilongwe/Blantyre,Luanda...it is possible they could fly to Far East routes with an Airbus A340.

kiligoland

February 16th, 2012, 04:18 PM

PRECISION AIR SCOOPES 2011/2012 AWARD

:banana::banana::banana:

http://farm6.staticflickr.com/5010/5310050104_cabdfc3b35_b.jpg (http://www.flickr.com/photos/stevesaviationphotos/5310050104/)
Flickr 上 stevesaviation (http://www.flickr.com/people/stevesaviationphotos/) 的 5H-PAZ (http://www.flickr.com/photos/stevesaviationphotos/5310050104/)

Ethiopian Airlines wins the Gold Award in the African Airline of the Year 2011/2012 Award given by African Aviation News portal. Ethiopian Airlines emerged ahead of the pack garnering the highest number of the votes cast in by the readers and followers of African Aviation, who voted in an online poll, set up at the African Aviation's website as well as in various industry meetings and airline congress events attended by officials of African Aviation. More than 20,000 votes registered in total, with Kenya Airways getting the Silver Award and Precision Air Tanzania pegging down the Bronze Award.

http://www.african-aviation.com/index.php?option=com_content&view=article&id=900:african-airline-of-the-year-award-20112012-ethiopian-airlines-bags-the-gold&catid=16:africa

tanzan

February 17th, 2012, 09:02 AM

tanzan

February 17th, 2012, 09:52 AM

Brand new ATR
http://i970.photobucket.com/albums/ae190/tanzan_2010/p1.jpg

kiligoland

February 17th, 2012, 09:57 AM

^^^^ wow, i think thats one of those they were saying in the above article:cheers:

lady gaga

April 26th, 2012, 11:17 AM

Precision Air to Add 4 New Destinations from May 2012

Tanzania’s Precision Air starting May 2012 is introducing 2 new destinations, where it’ll launch 3 weekly service to Lubumbashi and Lusaka, starting 18MAY12. Further, planned service to Lilongwe and Harare, due to start 02JUN12, is postponed until 03JUL12.

Schedule and routing:

Dar es Salaam – Lubumbashi – Lusaka – Dar es Salaam
PW704 DAR1030 – 1140FBM1230 – 1320LUN1410 – 1655DAR 733 357

Dar es Salaam – Lilongwe – Harare – Dar es Salaam
PW705 DAR1030 – 1105LLW1155 – 1305HRE1355 – 1640DAR 733 246

Geza Ulole

April 26th, 2012, 02:07 PM

lady gaga

April 26th, 2012, 02:13 PM

I think they should also think of routes like to khartoum, Juba, Asmara and Djibout

Thats exactly what i was thinking when i read the news instead of opening a long routes think of the close ones hopefully in the future they will near future

kijan

April 27th, 2012, 10:50 AM

I think they should also think of routes like to Khartoum, Juba, Asmara and Djibouti for the airline's steady growth! Mind u ET does not fly to Asmara, KQ does not fly to Mogadishu, plenty of opportunities to strategically capitalize on...

I guess it is not about filling empty routes but about business relationship btn Dar and those cities. Precision is a private company and has to be profitable.

tanzan

April 27th, 2012, 10:50 AM

I think they should also think of routes like to Khartoum, Juba, Asmara and Djibouti for the airline's steady growth! Mind u ET does not fly to Asmara, KQ does not fly to Mogadishu, plenty of opportunities to strategically capitalize on...

I also think it is a good idea to connect Horn of Africa to DSM. Remember, Djibouti has always been lucrative for ATCL for many years.It could work work out lets say Dar-Khartoum-Djibouti-Dar or Dar-Asmara-Juba-Dar

tanzan

May 16th, 2012, 03:21 PM

Word is that Precision will add a third 737-300 soon. Also plans are made for Guangzhou via Dubai...lets wait n see

kiligoland

May 16th, 2012, 03:37 PM

Word is that Precision will add a third 737-300 soon. Also plans are made for Guangzhou via Dubai...lets wait n see

:banana::banana::banana: tunasubiria ride :cheers:

tanzan

May 17th, 2012, 11:17 AM

:banana::banana::banana: tunasubiria ride :cheers:

yaani raha tupu mkuu.:lol:

tena nasikia wako katika harakati kuchukua 767-300

Geza Ulole

June 7th, 2012, 11:59 AM

7th June 12
Precision Air now expands its wings to DRC, Zambia
Lusekelo Philemon

The Tanzania’s private airline Precision Air is set to expand its wings to central African countries by launching direct flight from Dar es Salaam to Lusaka, Zambia, through Lubumbashi in the Democratic Republic of Congo (DRC).

Addressing journalists here yesterday Precision Air’s Group Managing Director and CEO, Alfonse Kioko said the airline will fly its first maiden flight to the two destinations on June 22, this year.

He said that the idea behind introducing the new route is to open-up central African countries with the rest of African countries, especially those of East Africa.

“The new route will help to cut time of travel and cost as the travellers are going to spend just 6.20hours to and from contrary to the previous, when they were spending more than 7 hours one way,” he said.

According to Kioko, the airline will operate three times a week with a new Boeing 737, recently acquired from Singapore.

And the new two destinations will bring the airline with a total of 17 routes in the region.

The flights will operate from Dar es Salaam connecting via Lubumbashi, then to Lusaka with the aim of capturing potential traffic on the way back to Dar es Salaam. The airline has voiced its commitment to eliminating the difficulty passengers’ face traveling between Zambia and Tanzania.

Until now, passengers have had to travel for more than nine hours through South Africa or Nairobi to get to Lusaka or Dar es Salaam due to the lack of convenient and direct flights.

Commenting on his airline’s future plans, Kioko said: “We are planning to buy five brand new planes in three years from now. And this year, we’re going to get two planes, and next year we’ll receive other two flights and in 2014 we’ll get the remaining one.”

He said the new flights will make the airline meet its target of covering the whole East, Central and Southern African destinations.

Kioko further stated that his airline is planning to turn Dar es Salaam as a major hub for major airlines for Africa and the world at large. “I’m saying this because; our plan is to cover east, central and southern part of the continent before going to West Africa and Asia. Thereafter we’ll be targeting European countries.”

Currently, the airline has a total of 12 flights, and with an additional of five will make the Tanzanian privately owned airline with 17 flights, by 2014.
THE GUARDIAN
http://www.ippmedia.com/frontend/functions/print_article.php?l=42357

tanzan

June 7th, 2012, 01:49 PM

Geza Ulole

June 7th, 2012, 05:31 PM

they mean aircrafts:lol:

So by 2014, East, Central & Southern Africa will be covered. I hope the fleet expansion isn't ATRs

nathani alitaka kumaanisha fleet ila kaka ashakumu si matusi neno aircraft halina wingi...good news though

Geza Ulole

June 16th, 2012, 12:06 AM

Precision Air gets Sh510 million IFC boost
Precision Air, which is partly owned by Kenya Airways, plans to add 10 new destinations in the next five years. Photo/File

Precision Air, which is partly owned by Kenya Airways, plans to add 10 new destinations in the next five years. Photo/File

Tanzanian airline Precision Air, which is partly owned by national carrier Kenya Airways (KQ), is set to get between Sh340 million and Sh510 million ($4 million to $6 million) capital injection from the World Bank’s private lending arm, IFC.

In an investment disclosure note, IFC says that Precision Air, which is listed on the Dar-es-Salaam Stock Exchange, will get the money to finance a Sh3.68 billion ($43.2 million) fleet expansion drive that will see it fly to 10 new destinations in the next five years.

“IFC’s role in the proposed transaction is (to) provide scarce long-term mezzanine capital, demonstration effect, environmental and social management and leverage IFC’s expertise in the industry, market and sector expertise and lessons learned from other transactions in the region and beyond,” says the IFC.

Prior to listing at the Dar exchange through an initial public offering (IPO), Precision Air was 51 per cent owned by Michael Shirima, chairman and founder of the airline and 49 per cent by KQ.

Mr Shirima and KQ’s stake declined to 42.91 per cent and 41.23 per cent, while the new share subscribers own the remaining 15.86 per cent.

KQ has set out on a similar growth plan financed through a mixture of equity, debt and internally generated cash. The airline recently floated a rights issue that raised Sh14.5 billion.

It is also planning fleet and route expansion with debt and internally generated revenues to supplement the funds for expansion.

The loan proposal is similar to the KQ rights issue where the IFC approved an additional Sh6.6 billion ($80 million) in debt to fund the national carrier’s expansion plans in addition to taking up $25 million (about Sh2.068 billion) worth of shares.

The disclosure note says that within the next four years as the plan pans out, it will increase the airline’s top line.

“The company expects to double its revenues by 2016, achieving it through a growing fleet and in particular, the new ATRs 600 series that are expected to join the fleet starting this year,” it says.

An IPO fact sheet by NIC Securities shows that the airline had a fleet of 11 aircraft and operated in 14 routes as at September 2011.

The fact sheet states that plans are underway to increase operations to Zambia, Mozambique and the DRC.

KQ said that it could not comment on the deal since Precision Air is an independent company despite its strategic stake in the listed Tanzanian carrier. “We cannot comment on the Precision Air,” KQ communications manager Chris Karanja told the Business Daily.

Precision Air delivered Sh238 million in share of associate income to KQ’s end of year revenues and Sh251 million in gains on deemed disposal after IPO.

KQ posted a Sh95 billion in revenues for the year ended March 31st 2012 and Sh1.66 billion in net profits from Sh3.58 billion in 2011, a 53 per cent drop and to cut costs the airline has said that it has stopped flights to Muscat and Rome.

READ: Kenya Airways profits dip 50 pc on high fuel costs, eyes hotel business

Precision Air has a share capital of 193 million shares and the last trading price was Tanzanian shillings 475 (Sh40.50) which gives it a Sh5 billion market capitalisation.

Should the IFC loan be approved it will create 600 new jobs in Tanzania from the current 771 most of which will be technical.

The IFC says that its involvement is based on the realisation that it is becoming harder for airlines to get funding, be it through equity or debt as the global economy struggles lending to certain sectors such as the airline industry is becoming conservative.

“Following the financial crisis, financial institutions are reluctant to increase their exposures to the airline sector in Africa.’’
Eric Musau, a research analyst at Standard Investment Bank, said while IFC loans are long-term, they are based on business decisions which means that they have seen a business opportunity worth investing in.
http://www.businessdailyafrica.com/Precision+Air+gets+Sh510+million+IFC+boost+/-/539552/1427660/-/view/printVersion/-/veyez/-/index.html

jgachiri@ke.nationmedia.com

bantugbro

June 16th, 2012, 03:07 PM

Tanzanian airline Precision Air, which is partly owned by national carrier Kenya Airways (KQ), is set to get between Sh340 million and Sh510 million ($4 million to $6 million) capital injection from the World Bank’s private lending arm, IFC.

This statement is incorrect.^^

lady gaga

June 18th, 2012, 11:27 AM

Precision Air Johannesburg Operation Changes from July 2012
by JL
Update at 0620GMT 18JUN12

Tanzania’s Precision Air starting 01JUL12 will change its operation on Dar es Salaam – Johannesburg route. Existing afternoon/night-time service will move to day-time from this date, while 1 of 4 weekly flight will operate via Zanzibar on inbound flight.

till 30JUN12
PW700 DAR1630 – 1915JNB 733 x124
PW701 JNB2330 – 0410+1DAR 733 x124

eff 01JUL12
PW700 DAR1000 – 1230JNB 733 x124
PW701 JNB1330 – 1810DAR 733 367
PW701 JNB1330 – 1800ZNZ1840 – 1905DAR 733 5

FoxAdriano

June 20th, 2012, 10:50 AM

Why if I buy a ticket from Dar es Salaam to Arusha, the ticket has a higher price than buying it by a online travel agency?

e.base

June 20th, 2012, 12:31 PM

Why if I buy a ticket from Dar es Salaam to Arusha, the ticket has a higher price than buying it by a online travel agency?

I think so..you can buy the ticket when you get in Dar..no need to buy it online..however you have an easier and more adventurous option..get a bus to Arusha..its only 8-9 hours and the roads are okay..The buses I usually use are Dar Express and Royal Coach, sometimes Saibaba. Get to know Tanzania more by using a bus to Arusha, if not you will be missing on the amazing scenery of Usambara mountains.

FoxAdriano

June 21st, 2012, 12:20 AM

Hello friends, when I will stay at Arusha in october, how many days before will I need to buy the flight from Arusha to Dar? Is it sufficient one day before or will I need 2-3 days before? Thanks

kiligoland

June 23rd, 2012, 07:35 AM

DAR ES SALAAM LUSAKA VIA LUBUMBASHI INAUGUTRATED

http://www.issamichuzi.blogspot.com/2012/06/precision-air-wazindua-safari-ya-dar.html

http://1.bp.blogspot.com/-SP1AWaLCFXs/T-SJPAh_dDI/AAAAAAAAUnU/a6Svdv9D5y8/s1600/1a.jpg

http://2.bp.blogspot.com/-xJ16CCeoFfY/T-SJkFLM-fI/AAAAAAAAUns/TxF4LIZ2KM8/s1600/2.jpg

http://2.bp.blogspot.com/-jTUzgfvZBO8/T-SKiFtLQKI/AAAAAAAAUos/iUZhE3ZsRxw/s1600/7.jpg

http://4.bp.blogspot.com/-pV-F5LB1-F8/T-SJ3HMYw1I/AAAAAAAAUn8/3MIbGWkzn5Q/s1600/2aa.jpg

tanzan

June 23rd, 2012, 10:57 AM

FoxAdriano

June 26th, 2012, 03:48 PM

PrecisionAir email?
Hello, in their web site there is this email: pwe-commerce@precisioinairtz.com but it is a wrong email. Why there is such problem to write to PrecisionAir ? Thanks

Geza Ulole

August 30th, 2012, 10:16 PM

Air-ticket buying simplified
Thursday, 30 August 2012 22:47

By Veneranda Sumila
The Citizen Reporter
Dar es Salaam. Air-travel customers will now be able to purchase their tickets via mobile transfer service after Precision Air signed an agreement with Vodacom Tanzania.Vodacom Tanzania has the largest network of mobile money transfer service dubbed M-pesa.The partnership agreement would enable customers to save time as they make the payment via M-pesa and receive an e-ticket for their journey.

“Previously customers could either pay online using credit cards or physically visit Precision Air offices or agents, but with M-pesa things would be much easier,” said Precision Air Commercial director Patrick Ndekana when making the announcement in Dar es Salaam yesterday.

He said, however, that a customer would be supposed to book for a ticket through the airline’s call centre to obtain a booking reference number needed to effect the transfer.

To make payments customers would follow the normal procedures of paying for a service via M-pesa, whereby Precision Air company number 333777, would be followed by the reference number provided earlier. The customer would then be notified of their ticket number.
According to Mr Ndekana, a mobile ticket purchase would see customers enjoy a 20 per cent discount on their fare.

The airline’s current fleet consists of five 70-seater ATR 72-500, four 48-seater ATR 42 and three Boeing 737.Vodacom Tanzania head of M-Commerce Innocent Ephraim, urged Tanzanians to utilise M-pesa services as it is the fast and reliable service that has revolutionised the way money is sent, received and saved.“We hope that we shall be able to serve our customers better, we are proud of this partnership,” said Mr Ephraim. There are over 20,000 M-pesa agents.

v8Nd5k6zDCY&feature=player_embedded
http://www.thecitizen.co.tz/business/-/25347-air-ticket-buying-simplified

mwanamwiwa

August 30th, 2012, 10:37 PM

Precision Air rules.:cheers:

NewComer98

September 1st, 2012, 02:34 AM

^^^^ Your just saying that because it is owned by Kenya Airways :ohno: I like Air Tanzania better.

mwanamwiwa

September 1st, 2012, 12:38 PM

^^^^ Your just saying that because it is owned by Kenya Airways :ohno: I like Air Tanzania better.

You like Air Tanzania more because its owned by South African airlines.

NewComer98

September 1st, 2012, 07:01 PM

^^^^ No I like it because its Tanzania's national carrier.

mwanamwiwa

September 1st, 2012, 11:36 PM

^^ Everyone is entitled to their opinion(s).I like Precision Air because its the best airline in Tanzania.

Geza Ulole

September 8th, 2012, 04:27 PM

Precision Air eyeing Harare and Blantrye

http://www.eturbonews.com/files/imagecache/fullpage/0a13a_19.jpg

BY DR. WOLFGANG H. THOME, ETN UGANDA | SEP 03, 2012
Precision Air, Tanzania’s dominant airline, appears set to fly to Harare via Blantyre later this year, adding two more regional routes to their growing network. Similar to the flights recently launched to Lusaka, via Lubumbashi, the Harare connection will also be operated three times a week, using a B737-300.

The airline is on course to fly a million passengers per year for the first time in their history, and has additional brand new ATR 72-600 aircraft on order to expand both domestic as well as near regional routes.

Airline also hopes that ongoing work and construction at key airfields would be completed at a faster rate in order to open up more parts of the sprawling country.

Precision has also increased frequencies between Dar es Salaam, Arusha and Mwanza following the withdrawal of Air Tanzania from the route a few weeks ago, surely hoping that should another return of the financially stricken ATCL take place in the future, passengers will stay with Precision Air.

http://www.eturbonews.com/30983/precision-air-eyeing-harare-and-blantrye

Geza Ulole

September 13th, 2012, 02:05 PM

Precision Air has posted a pre-tax profit increase of almost 20 per cent but was limited by massive shilling depreciation.

http://in2eastafrica.net/wp-content/uploads/2012/09/precision-air.jpg
The airline, which its financial year starts at April, posted a pre-tax profit of 1.84bn/- up from 1.55bn/- registered in the previous year, being its first financial results after having been listed last year.

The profitability was lifted by increasing capacity offered to the market by 46 per cent that pushed passengers uplifted by 24 per cent compared to previous year after the airline deployed larger aircraft on regional routes.

“This capacity has been taken up very well thus bolstering the company’s performance and reinforcing the (airline’s) position in the industry,” the designated nation carrier said.

The airline said in a statement released yesterday: “We are pleased to report that despite the many challenges faced by the aviation industry, Precision Air recorded impressive performance during 2011/12.” Orbit Securities Head of Dealings and Operations, Juventus Simon said the airline industry last year was challenging one as despite the Precision Air having posted impressive revenue, it ended up getting very little.

“Last year, many airlines passed turbulence weather and posted revenue decline or losses including the world heavy weight, but Precision (Air) emerged on a strong note,” Mr Simon told the ‘Daily News’. He said poor exchange rate and financial cost of 7.65bn/- also have contributed heavily on the airline to register a marginal profit though for long term investors, the airline’s share is a good buy.

“I think share price remain at the current level (of 470/-), but the profit attained is encouraging, if I have to put them in scale is 50/50,” the stockbroker said. PW total revenue during the year under review reached 163.06bn/- but the cost of sales was at 117.06bn/-, which analysts said the industry nature of business is complicated as it left the airline to remain with a relative low income.

In the same year, due to exchange rate fluctuations the airline lost 3.07bn/- up from 2.25bn/- of previous year, which is 38 per cent due to weaken shilling in the corresponded financial year. Nevertheless, the airline said it has embarked on a fleet expansion programme where it order five brand new ATR 600 latest series into the fleet and older series ATR 42-320 which have delivery period of three-year.

“The increase of capacity is required to facilitate the execution and achievement of the airline’s five years strategic plan,” the airline said in the release without mentioning dividends offer. Tanzania Securities Chief Executive Officer, Mr Moremi Marwa said even though Precision Air did not declare dividends, the profit they made was “better than nothing (loses).”
http://www.dailynews.co.tz/index.php/biz/9472-precision-air-posts-2bn-pre-tax-profit