Zanzibar airport monopoly puts 600 jobs at risk

Zanzibar airport monopoly puts 600 jobs at risk

Dar es Salaam. Some 600 people at the Abeid Amani Karume International Airport are at risk of losing their jobs should the Zanzibar Airports Authority (ZAA) stick to its recent decision, according to Tanzania Air Operators Association (Taoa).

On September 14, 2022, the director general of ZAA issued a directive that gave Dnata Zanzibar Aviation Services Limited an exclusive access to the newly constructed Terminal III, barring other operators.

According to the notice, Dnata shall be the exclusive provider for ground handling and management of the Marhaba Lounge Services with effect from December 1, 2022.

Far-reaching consequences

This, according to Taoa, is set to have far-reaching consequences as other operators will not be able to survive due to the low volume of business.

“This might lead to the collapse of other operators and 600 employees losing their jobs in the process,” Taoa said in a statement availed to the media on Tuesday.

The decision by ZAA, Taoa said, could draw a negative inference and could impact investor confidence in the long run.

“We are concerned about the safety of our member investment following ZAA’s non-adherence to the laws,” charged Taoa.

It added: “While the association welcomes investors, competition and Dnata as an investor, on the same token, due process must be followed without favouritism.”

The statement further said: “ZAA should not disregard local and foreign investors who have invested heavily and worked closely with the authority even when the infrastructure was poor for the past 20 years.”

The ZAA’s move is against the decision of the board of directors of the Tanzania Civil Aviation Authority (TCAA) No. 01 of 2022 which prohibits, among other things, monopoly, price caps and segregation of terminals.

“No tender floated”

Taoa understands the recruitment of Dnata was done without publication of any tender for procurement of such services.

The Association noted that the notice was in violation of applicable procurement regulations and prevailing ground handling services procedures and regulations.

Regulation 20 of the Civil Aviation (Ground Handling Services) of 2012, requires the selection procedures of ground handlers to adhere to principles of transparent, non-discrimination and international competitive tendering.

“Surprisingly, in the process of recruiting Dnata, there has not been public tendering for all stakeholders to fairly participate. The monopolistic environment is not an ideal scenario for airlines, passengers and a healthy aviation industry,” reads a part of the Taoa statement.

The statement further added: “In engaging Dnata without an open tendering process, ZAA does not only set a dangerous precedent in the aviation industry, but also makes a huge dent on the country’s efforts to attract international investors.”

It means, ZAA’s decision to award an exclusive right to Dnata goes against established international best practices in such services.

ZAA notice, according to Taoa, seems to be not only in direct contravention to the mandate it received from TCAA, but also Fair Competition Laws which discourage monopolistic practices.

“Today it is ZAA and AAKIA, tomorrow will be the Tanzania Airports Authority (TAA) with the Julius Nyerere International Airport (JNIA) and Kilimanjaro International Airport (Kia),” Taoa cautioned.

Taoa urged TCAA to intervene and direct ZAA to reconsider its directive, given the immense impact it has on the rule of law, local and international airline operators, airport ground handlers and airport users.

What others say

Renowned aviation expert Juma Fimbo advised ZAA to go back to the drawing board to address the saga.

“In the course of effecting the good intention of making Zanzibar airport the world class in terms of services, has ended up overlooking some underlined legal and procedural principles in granting airport concession,” said Mr Fimbo.

He added: “The government has erred, what is needed is damage control by reconsidering its decision.”

Mr Jimray Nangawe, an aviation expert said monopoly in business should not be entertained.

However, he challenged the current operators to find a way of joining forces to become strong enough to offer services in other airports.

Mr John Chambo, an aviation expert said: “If we are not to damage the reputation of the aviation sector, the set procedures should be adhered to.”

Adding: “If procedures were violated for the good of the flying public, relative authorities should explain about that.”

Efforts to get comments from ZAA and TCAA proved futile.

Original Media Source

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Air Tanzania Banned From EU Airspace Due to Safety Concerns
Tanzania Foreign Investment News
Chief Editor

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).

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

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