ATCL new wide-body jet enhances capacity, market reach

THE addition of a new wide-body jet to Air Tanzania Company Limited’s (ATCL), which boosts a youngest fleet in Africa, marks a significant strategic development for the national carrier.

TANZANIA, Dodoma: THE addition of a new wide-body jet to Air Tanzania Company Limited’s (ATCL), which boosts a youngest fleet in Africa, marks a significant strategic development for the national carrier.

With this expansion, ATCL’s fleet now includes 16 aircraft, further solidifying its position as a leading player in the regional aviation market.

The introduction of the wide-body jet—Boeing B787-8 Dreamliner—will enhance ATCL’s operational capabilities in several ways.

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Firstly, Economist cum Investment Banker, Dr Hildebrand Shayo told ‘Business Standard’ it increases the airline’s capacity to serve more passengers, particularly on long-haul and high-demand routes.

“This expanded capacity allows ATCL to tap into new markets and offer more frequent flights, which can attract a broader customer base and improve overall market share,” Dr Shayo said.

The increased passenger capacity translates directly into higher ticket sales, while the efficiency of modern, large-capacity aircraft often results in lower per-passenger operating costs.

Additionally, the economist said, the new jet’s advanced technology and fuel efficiency can lead to reduced maintenance and operational expenses, further enhancing profitability.

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Air Tanzania’s status as the airline with the youngest fleet in Africa provides it with a competitive edge in terms of reliability, safety and passenger experience.

Recently in Zanzibar, ATCL receives the new equipment worth over 300bn/- at a ceremony that was led by Isles’ President Dr Hussein Ali Mwinyi. The new aircraft brought the total fleets of the national carrier to 16 airplanes.

The Boeing 787-8 Dreamliner with a configuration of 162 seats and a cargo capacity of 20 tonnes is optimised for specific operational needs, likely focusing on comfort and efficiency over maximum passenger volume.

“ATCL’s new Dreamliner configuration will enhance its competitive edge on both short and long-haul international routes.

“By optimising the aircraft for significant city-to-city routes, ATCL aims to offer better service on high-demand destinations, potentially capturing a larger market share,” Dr Shayo said.

However, the economist warns ATCL that it must closely monitor how other state-owned airlines in Africa and the Middle East maintain their competitive advantages and consistently deliver high-quality services.

ALSO READ: Launch of Dubai flights is strategic, says ATCL

“In specific markets, the one-size-fits-all approach is inapplicable and replicating it would be detrimental to Tanzania’s long-term investment goals,” Dr Shayo said:

“To genuinely establish Dar es Salaam as the primary hub of East Africa’s aviation sector, low-cost airlines operating in the country must rapidly expand domestically and regionally while supporting the airline’s long-haul operations.”

Speaking at the Dreamliner reception ceremony last Tuesday in Zanzibar, Permanent Secretary for the Ministry of Transport, Professor Godius Kahyarara, said that the airline generated over 492bn/- in the last three years.

“We see huge economic benefits from investing in ATCL, which in return brings foreign currency and diversify markets for local business,” Prof Kahyarara said.
The national carrier forex generated increased four times from 17 million US dollar in 2021 to 70 million US dollar last year. In term of tax, ATCL is paying an average of 80bn/- yearly.

Prof Kahyarara said that the national airline will enhance the central corridor business and support cargo movements to and from Dar es Salaam Port by rail and road, benefiting Rwanda, Uganda, Zambia, Malawi and the Democratic Republic of Congo (DRC).

So far, ATCL has three major long routes to China, Dubai and India apart from those within the continent in countries such as Nigeria and the Democratic Republic of Congo (DRC).

ATCL’s Managing Director, Eng Ladislaus Matindi told the “Business Standard” that the airline is planning to start flying to London, United Kingdom.

ATCL is a government-owned airline with a fleet of 16 aircrafts; one Dash 8-Q300, five Dash 8-Q400, four Airbus A220-300, two Boeing 737 Max 9, three Boeing 787-8 Dreamliner and one Boeing 767-300F—cargo freighter.

In summary, the new wide-body jet enhances ATCL’s capacity, operational efficiency and financial performance, all while reinforcing its reputation as a modern and competitive airline in the African aviation market.

This strategic acquisition is a clear indication of ATCL’s commitment to expanding its market presence and delivering superior service to its passengers.