MORE INTERNATIONAL FIRMS INVITED TO BID ON AIR TANZANIA.
Business News By Leo Odera Omolo.
Tanzanian government is reported to be eying for more bidders for its financially strapped national carrier, Air Tanzania.
The government wants it revived so that it could take advantage of the fast growing air travels market in East, Central and Southern African regions, as well as take advantage of the exploding Chinese population in East and Central Africa.
The government has now decided to invite more international firms to vie for a stake in the ailing airline, despite having already entered the final stage of two-years negotiations with a Chinese firm, China Sonangol International Holdings, to buy a controlling stake in the ailing Air Tanzania Corporation Limited.
According to sources in Dar, the state owned national carrier last month cut its workforce by 155, amid talks of a partnership with China Sonangol. Only 182 employees remain on the job. It cited overstaffing and accumulated staff wages as the reasons for the layoffs.
The envisaged plan has been confirmed by the Permanent Secretary in the Ministry of Infrastructure Development, Omar Chambo, in an interview published this week by the influential regional weekly, the EASFRICAN, in which he is quoted as having disclosed that talks between the government and the officials from China Sonangol International Holdings are at an “advanced stage”, without offering any further elaboration.
The PS further disclosed that the negotiations with the Chinese firm do not bar the government from looking for other investors, and that already, several other companies have shown interest in the carrier. However, he declined to name the other firms and their number, only saying this could jeopardize the discussions.
According to Chambo, the government of Tanzania wants to see Air Tanzania revived and brought back to take advantage of the fast growing markets like the Democratic Republic of Congo, Zambia, China and Malawi.
But observers and critics alike say the government has not kept its word on giving Air Tanzania full support, since the firm broke ranks and parted ways with the South African Airline {SAA} in 2006.
Air Tanzania Corporation Ltd, formerly known as Air Tanzania Corporation, was privatized on December 2, 2002, in a deal in which SAA acquired 49 per cent shares in the firm for USD 20 million, which largely went into shareholding, with the rest going into capital and training accounts.
And last week , a US firm, Celtic Capital Corporation of Texas, said it was ready to take over the operations of Air Tanzania.
Five firms based in the US, the UK and the United Emirates have also shown interest in running the cash-strapped airline.
According to other reports, in August 2008, the Tanzania government held secret discussions with the Chinese Development Bank to sell the 49 per cent shares acquired back from SAA to a Hong Kong based private firm, with a view to reviving the ailing airline.
In the deal, China Sonangol International Holdings was expected to fund the operations of the airline that is now struggling to regain its reputation and position in the regional and international market.
The EASTAFRICAN also quoted the chairman of Sonangol International, Sam Pal as saying that China Development Bank would be funding the takeover of Air Tanzania, but bureaucracy has delayed the takeover.
Mr Pal disclosed in the report that the Sonangol has already started the construction of Terminal Three of Julius Kambarage Nyerere international Airport in Dar Es Salaam, and is working on expansion of the airport.
Sonangol said it has already bought an Embarer fleet for Air Tanzania.
China Sonangol International Holdings Holdings Ltd, which was established in 2004, mainly engages in oil, gas and mineral investment and exploration, crude oil trading and large scale national reconstruction projects.
Headquartered in Hong Kong, the company also deals in chartered airlines in Angola, the US and the UK.
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leooderaomolo@yahoo.com,