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Africa Business News of Monday, 29 March 2021

Source: thecitizen.co.tz

Report shows Air Tanzania made a loss of over $25 million

Tanzania's Control and Auditor General’s (CAG) report for the financial year 2019-2020 has revealed that Air Tanzania Ltd is among the loss making government entities.

According to the report ATCL the national carrier recorded a loss of Sh60 billion (over 25 million USD) in the financial year under review.

“We have discovered that ATCL has made losses of up to Sh60 billion but also in the past five years this company has been making losses annually. There are several challenges that the government ought address immediately,” said Charles Kichere.

This is despite having received additional equipment in terms of aircrafts that were bought by the government to aid the company’s performance.

However, analysts say that the period under review was one of the most difficult one in the aviation industry due to the outbreak of the Covid-19 pandemic which forced most countries to go into lockdowns.

Air Tanzania Company Limited (ATCL) consequently suspended of all its international flights in response with effect from March 25.

In an interview with the Citizen Ladislaus Matindi said the company reached the decision to suspend flights to Mumbai, Entebbe, Bujumbura, following a ban from the said countries while its Comoro route operated for the last time on March 23.

The company only resumed international flights in October 2020 after close to Seven months lay off.

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