Dar es Salaam. Swissport Tanzania recorded a 21.4 percent increase in net profit last year, thanks to a significant business recovery from the impact of Covid-19 and increased Air Tanzania Company Limited (ATCL) operations.
The ground handler’s financial results for the year ended December 31, 2022, indicate that the company’s net profit jumped to ShSh2.61 billion from Sh2.15 billion realised in the preceding year.
During the period under review, the flight frequencies increased by 53 percent, and the volume of cargo handled increased by 20 percent. As a result, total revenue increased by 25 percent to Sh38.29 billion, according to the report signed by the board’s chair, Mr Dirk Goovaerts, and the company’s CEO, Mr Mrisho Yassin.
With last year’s handsome performance, the board announced a final dividend of Sh1.51 billion, or Sh42 per issued and fully paid share. However, no interim dividend was declared and paid during the year.
Promising future
According to the report, both the ground handling and cargo handling business segments have fully recovered from the impact of the pandemic.
Airlines are operating at their normal capacity and have plans to increase frequencies. The planned growth of ATCL, the national flag carrier, is also expected to stir further growth in the aviation market.
ATCL has a fleet of 12 aircraft: one Dash 8-Q300, five Dash 8-Q400, four Airbus A220-300, and two Boeing 787-8 Dreamliners. Before the end of this year, the airline expects to add to its fleet one Dash 8 Q400, two Boeing 737 Max 9, one Boeing 787-8 Dreamliner, and one Boeing 767 Freighter, bringing the total number of its aircraft to 17.
Going by Swissport’s report, the lounge business is envisaged to continue growing and contribute positively to the business.
“These developments, coupled with the improved business environment over the past years, are expected to increase flight frequencies and the volume of cargo in 2023,” reads a part of the report. This will in turn have a positive impact on the financial performance of the company. “To sustain and grow the business in 2023, improving the quality of services offered to airlines, maintaining operational and cost efficiencies, and investing in human resources will remain key priorities for Swissport,” reads a part of the report.
The list of priorities also includes investment in technology, training, ground support equipment and cargo infrastructures, product innovation, retention of customers, and winning new profitable business.
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Air Tanzania Banned From EU Airspace Due to Safety Concerns
Several airports have since locked Air Tanzania, dealing a severe blow to the Tanzanian national carrier that must now work overtime to regain its certification or go the wet lease way
The European Commission has announced the inclusion of Air Tanzania on the EU Air Safety List, effectively banning the airline from operating in European airspace.
The decision, made public on December 16, 2024, is based on safety concerns identified by the European Union Aviation Safety Agency (EASA), which also led to the denial of Air Tanzania’s application for a Third Country Operator (TCO) authorisation.
The Commission did not go into the specifics of the safety infringement but industry experts suggest it is possible that the airline could have flown its Airbus A220 well past its scheduled major checks, thus violating the airworthiness directives.
“The decision to include Air Tanzania in the EU Air Safety List underscores our unwavering commitment to ensuring the highest safety standards for passengers in Europe and worldwide,” said Apostolos Tzitzikostas, EU Commissioner for Sustainable Transport and Tourism.
“We strongly urge Air Tanzania to take swift and decisive action to address these safety issues. I have offered the Commission’s assistance to the Tanzanian authorities in enhancing Air Tanzania’s safety performance and achieving full compliance with international aviation standards.”
Air Tanzania has a mixed fleet of modern aircraft types including Boeing 787s, 737 Max jets, and Airbus A220s.
It has been flying the B787 Dreamliner to European destinations like Frankfurt in Germany and Athens in Greece and was looking to add London to its growing list with the A220.
But the ban not only scuppers the London dream but also has seen immediate ripple effect, with several airports – including regional like Kigali and continental – locking out Air Tanzania.
Tanzania operates KLM alongside the national carrier.
The European Commission said Air Tanzania may be permitted to exercise traffic rights by using wet-leased aircraft of an air carrier which is not subject to an operating ban, provided that the relevant safety standards are complied with.
A wet lease is where an airline pays to use an aircraft with a crew, fuel, and insurance all provided by the leasing company at a fee.
Two more to the list
The EU Air Safety List, maintained to ensure passenger safety, is updated periodically based on recommendations from the EU Air Safety Committee.
The latest revision, which followed a meeting of aviation safety experts in Brussels from November 19 to 21, 2024, now includes 129 airlines.
Of these, 100 are certified in 15 states where aviation oversight is deemed insufficient, and 29 are individual airlines with significant safety deficiencies.
Alongside Air Tanzania, other banned carriers include Air Zimbabwe (Zimbabwe), Avior Airlines (Venezuela), and Iran Aseman Airlines (Iran).
Commenting on the broader implications of the list, Tzitzikostas stated, “Our priority remains the safety of every traveler who relies on air transport. We urge all affected airlines to take these bans seriously and work collaboratively with international bodies to resolve the identified issues.”
In a positive development, Pakistan International Airlines (PIA) has been cleared to resume operations in the EU following a four-year suspension. The ban, which began in 2020, was lifted after substantial improvements in safety performance and oversight by PIA and the Pakistan Civil Aviation Authority (PCAA).
“Since the TCO Authorisation was suspended, PIA and PCAA have made remarkable progress in enhancing safety standards,” noted Tzitzikostas. “This demonstrates that safety issues can be resolved through determination and cooperation.”
Another Pakistani airline, Airblue Limited, has also received EASA’s TCO authorisation.
Decisions to include or exclude airlines from the EU Air Safety List are based on rigorous evaluations of international safety standards, particularly those established by the International Civil Aviation Organization (ICAO).
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The process involves thorough review and consultation among EU Member State aviation safety experts, with oversight from the European Commission and support from EASA.
“Where an airline currently on the list believes it complies with the required safety standards, it can request a reassessment,” explained Tzitzikostas. “Our goal is not to penalize but to ensure safety compliance globally.”
Airlines listed on the EU Air Safety List face significant challenges to their international operations, as the bans highlight shortcomings in safety oversight by their home regulatory authorities.
For Air Tanzania, this inclusion signals an urgent need for reform within Tanzania’s aviation sector to address these deficiencies and align with global standards.
The path forward will require immediate and sustained efforts to rectify safety concerns and regain access to one of the world’s most critical aviation markets.
Source: allafrica.com
