Friday, January 11, 2013

■ TANZANIA: Omani consortium to invest $100m in Air Tanzania.

Air TanzaniaTanzanian national carrier Air Tanzania (TC) is set to receive a much needed shot in the arm with reports that a consortium led by the Oman-based Al Hayat Development and Investment Company is to invest USD100million (TSH160million) into the struggling airline, with the final Memorandum of Understanding (MoU) to be signed "by the end of next week" (January 18).

In a press statement, Al Hayat Chairman, Sheikh Salim Al Harthy, said:
"As part of this commitment, we (the Omani Consortium) intend to sign an agreement with Air Tanzania to invest 100 million dollars and lead a consortium of other investors that we have close relations with," he said.
Source [DailyNews]

Amongst the facilities and plans outlined by Sheikh Harthy are to:
  • build an airline training centre, 
  • better offices for Air Tanzania,
  • buy aircraft,
  • engage in "other development activities which they plan to start within six to ten months this year."
Source [VenturesAfrica]

Air Tanzania's China Sonangol
Air Tanzania's China Sonangol A320
Air Tanzania's Acting Chief Executive Officer, Captain Milton Lazaro, welcomed the development as good news that is likely to see the airline "stand on its feet once again". Captain Lazaro said his company had already held initial talks with the imminent investors, who have expressed their readiness to put money in the organization.

Air Tanzania in recent years has been privy to many potential investors. Its biggest suitor came in 2009 with China-Sonangol, who were lined up for a 49% stake in ailing national airline Air Tanzania (TC) when plans collapsed under uncertain circumstances.