The National Audit Office of Tanzania has recommended that national carrier Air Tanzania, in cooperation with the Tanzanian government, undertake a study to determine what the most suitable aircraft operation model for the airline would be. The respected UK-based website “FlightGlobal” reported that this followed years of financial losses incurred by the carrier.

Indeed, Air Tanzania’s losses for the 2023/24 financial year were, at 91.8-billion Tanzanian shillings (TSh) – or $34-million – 60% worse than the loss recorded in the 2022/23 financial year. These were just the latest two of six consecutive years of losses by the carrier. Over these six years, the airline had run up total losses of more than TSh530-billion. These losses occurred even though the government had granted Air Tanzania subsidies of TSh70-billion, to cover salaries, and TSh57-billion, to fund development projects.

“The worsening financial position was primarily driven by high lease and maintenance costs for newly acquired aircraft, further straining resources,” stated the auditors. (The carrier received its first two A220s in late 2018 and the second two in late 2021.)

Despite being so new, all of the A220 fleet had suffered from extended groundings, ranging (as of June 30 last year) from 279 days to 721 days. This was the reason the auditors were recommending that an aircraft operational model study be undertaken. The groundings had inflicted fixed costs of almost TSh9.2-billion on the airline. A lease incentive of some TSh5.5-billion offered by the government obviously did not cover all these costs.

The reason for these groundings was durability problems with the A220 powerplants – Pratt & Whitney PW1500G engines – and a lack of spare parts for them. “[I]nadequate feasibility studies before acquiring the aircraft,” in the words of the auditors, was one cause for this situation. The other was that the Air Tanzania management had had an inadequate understanding of the terms of the purchase contract. “The company has incurred unnecessary financial burdens that could have been covered.”

In addition, one of the carrier’s three De Havilland Dash 8-300 twin-turboprop airlines had been grounded for seven years, despite four years of attempts to return it to service. These failed maintenance efforts had cost the airline TSh20.6-billion. The reasons identified by the auditors for this situation were problems in getting spare parts and a failure by management to assess the economic feasibility of the refurbishment project. As of June 30, last year, the aircraft was still grounded.

“FlightGlobal” also noted that the auditors had reported that permit and slot delays had hampered Air Tanzania’s freighter operations.