Apr 3, 2017

The Guardian: Bombardier Zilinunuliwa Bila Kuwa na Business Plan

ATCL now seeks business plan after $500m aircraft purchase

The move comes several months after the government purchases new planes for the flag carrier without a long-term business blueprint.
THE government has spent close to $500 million (over 1 trillion shillings) to purchase seven new aeroplanes for Air Tanzania Company Limited (ATCL) without having a comprehensive business plan in place for the revival of the ailing national flag carrier.

The types of aircraft used by an airline is a key component of any typical business plan and can directly affect its profitability, according to aviation experts.

This means that the government's decision to buy planes without following a comprehensive business plan could be a classic case of putting the cart before the horse.

The national flag carrier is now inviting bids from consultants to prepare a "comprehensive fiveyear business plan" several months after the government spent over 1 trillion/ to buy new planes.

"Air Tanzania Company Ltd now invites eligible 'individual consultants' to express their interest in ... provision of individual consultancy services to provide overall leadership to the ATCL team in developing a fiveyear corporate business plan to ensure that the company fulfils its mandate," ATCL said in a tender notice issued last week.

The duration of the assignment for preperation of the business plan is "30 man days," said the national airline.

Ladislaus Matindi, managing director and chief executive officer (CEO) of ATCL, told The Guardian yesterday that the arline was currently operating its business based on an interim business plan.

“We are expanding and the business trend is good ... thus it is important to have a comprehensive business plan to sustain the company,” Matindi said.

He noted that in a fivemonth period (October 2016 to February 2017), ATCL generated 9 billion/ in revenue thanks to the arrival of two brand new planes, which is unprecedented income for the struggling airline in recent memory.

Source: The Guardian

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