#PW| Precision Air - Official Thread

[kiligoland]

image hosted on flickr

5H-PWD by stevesaviation, on Flickr

[èđđeůx]

Originally Posted by tanzan

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]

Precision Air makes second attempt to raise capital


http://www.dailynews.co.tz/business/...5&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]

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/

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

[èđđeůx]

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

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

Air Tanzania plans Bombardier purchases
eTurbo News

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]

Originally Posted by Kigali_Paris

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/

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

your welcome...

[TZBoy]

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/...4&cat=business

[TZBoy]

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]

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




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/...s-1169-en.html

[kiligoland]

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/...1&cat=business

[bantugbro]

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

[tanzan]

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]

PRECISION AIR SCOOPES 2011/2012 AWARD




image hosted on flickr

Flickr 上 stevesaviation 的 5H-PAZ

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/inde...atid=16:africa

[tanzan]

Originally Posted by kiligoland

PRECISION AIR SCOOPES 2011/2012 AWARD




image hosted on flickr

Flickr 上 stevesaviation 的 5H-PAZ



http://www.african-aviation.com/inde...atid=16:africa

[tanzan]

Brand new ATR

[kiligoland]

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

[lady gaga]

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]

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...

[lady gaga]

Originally Posted by Geza Ulole

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]

Originally Posted by Geza Ulole

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.