Bunge directs govt to resolve ATCL challenges
DODOMA: MEMBERS of Parliament have directed the government to transfer ownership of the aircraft operated by the Air Tanzania Corporation Limited (ATCL) from the Tanzania Government Flight Agency (TGFA) to the national carrier.
TGFA, a state-run agency, currently owns the planes, which are leased to ATCL.
However, MPs argue that this arrangement creates operational difficulties for the airline. The directive was issued during deliberations on the 2024 Report, which was tabled in the National Assembly by the Chairperson of the Parliamentary Standing Committee on Infrastructure Development, Moshi Kakoso.
According to the legislators, the current ownership and leasing structure has resulted in ATCL inheriting a significant debt of 429bn/-, which accumulated from aircraft leasing contracts between TGFA and ATCL. MPs noted that this debt has severely impacted the airline’s financial stability and its operations.
“Due to the current arrangement and the inherited debt, ATCL is struggling to purchase spare parts, hire pilots and engineers and even obtain permits to ferry cargo abroad in a timely manner,” Mr Kakoso said while presenting the report.
The legislators said that the current setup hampers the government’s efforts to expand the airline and improve its services.
They stressed that in order to boost ATCL’s performance, the government must expedite the transfer of all aircraft from TGFA to the national carrier. Furthermore, MPs called on the government to amend the law that established ATCL, to allow the airline to operate as a company rather than a public parastatal organisation (corporation).
In addition, the legislators urged the government to ensure its institutions settle the 64bn/- in outstanding debts, including an 18bn/- debt owed by suppliers to the corporation.
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They also called for the government to fast-track the construction of an aviation college and improve the welfare of pilots, suggesting that these measures could attract Tanzanian pilots working abroad to return home.
As part of the resolution, MPs also asked the government to replace the faulty engines on ATCL’s Airbus A220-300 aircraft fleet.
The legislators noted that the airline’s Airbus A220-300 aircraft had been experiencing engine issues, leading to frequent maintenance and occasional flight disruptions.
ATCL currently operates four Airbus A220-300 aircraft, and the MPs said that the engines’ premature wear and reliability issues have caused significant operational challenges.
Despite these difficulties, the MPs acknowledged that ATCL had made notable progress, increasing the number of destinations from four in 2016 to 28 by November last year.
Currently, the airline serves 25 destinations, with 13 domestic, nine regional and three international routes. The report also showed that ATCL had passed the aviation safety inspection four consecutive times, earning the IOSA 26 Certificate.
