ATCL gets lease to fly again

The financially troubled Air Tanzania Corporation Limited (ATCL) might soon get a loan amounting to some seven billion shillings from an international bank - all guaranteed by the government, it has been learn. Impeccable sources close to the national flag carrier claimed yesterday that CITI Bank was looking into the airline’s request for a loan amounting to some 7.1bn/-.

“Air Tanzania had approached several banks for such credit... the CITI Bank has agreed to look into its request and chances are things will work out positively,” the sources said. The sources also indicated that the airline needed the money to pay for staff salaries and administrative costs, among others. However, the sources claimed that the airline’s request for the money had since been rejected, and that the airline can no longer meet its mandatory operational costs such as fuel.

The airline has been experiencing financial problems since 2004 when it incurred a loss of some 7.7bn/-, which improved somewhat when it broke its troubled marriage with the South African Airlines in late 2006. According to Treasury records, it held some 13bn/- by March last year. Some of the workers who did not want their names to be disclosed said the morale of the majority of the workforce has gone down because the company was nosing down.

“The government has not kept its word on giving ATCL full support... it has not done so since we parted company with the South Africans,” they allege. ATCL, formerly known as Air Tanzania Corporation (ATC) was privatized on December 2, 2002 in a deal under which SAA acquired 49 per cent shares in the firm. SAA bought the 49 per cent shares for only $20m which largely went into shareholding - the rest going into capital and training accounts.

Chales Kizigha