Kenya Airways in talks to acquire bigger stake in Precision Air

 

 

Precision Air (PW, Dar-es-Salaam) is in talks with 41.23% shareholder, Kenya Airways (KQ, Nairobi Jomo Kenyatta), in a bid to raise USD30million in capital needed to keep the struggling Tanzanian airline afloat. According to The East African, the ongoing talks could see Kenya Airways boosting its stake in Precision Air after similar discussions with the Tanzanian government collapsed. “KQ was waiting for the government’s decision. When the government gave us its final decision on the matter, KQ came up with the idea to increase its stake, over which we are still in discussion. Our aim is it get between $20 million and $30 million through equity,” said Precision's chairman, Michael Shirima.

 

Faced with rising uncertainty about its future, caused largely by a failed 2012 IPO and an overambitious expansion plan, Precision Air has been forced to make drastic cuts to its fleet and route network in recent months as it struggles to stay afloat. Increased competition from Fastjet (FN, Dar-es-Salaam) on domestic routes has also compounded its woes.

 

Source: ch-aviation

Precision Air still planning Harare Route

According to a recent statement, Precision Air has announced it is in the process of reviewing its operational 5-year plan as part of its expansion and business review. The announcement comes three (3) months after Precision Air announced the appointment of the first female MD and CEO in Africa, Ms. Sauda Rajab.

Ms. Sauda revealed the Airline was undergoing the said review setting course for operational and fleet expansion measures and re-assessment of the airline's current position which will have deep impact on Precision Air's business landscape and finances.

“The next 5 years will be exciting ones for the Airline and the plan will involve massive growth in Precision Air’s operations and will therefore require major injection of funds. Various investment options are being reviewed and once the plan has been finalized and approved by the Board it will be shared with various stakeholders and the public at large” said Ms. Sauda. The report also mentions the much awaited route to Harare will soon be launched with expected continual fleet review and increase.

Precision Air Postpones Harare Launch Date

Tanzania’s Precision Air starting May 2012 is introducing 2 new destinations, where it’ll launch 3 weekly service to Lubumbashi and Lusaka, starting 18MAY12. Further, planned service to Lilongwe and Harare, due to start 02JUN12, is postponed until 03JUL12.
Schedule and routing:

Dar es Salaam – Lubumbashi – Lusaka – Dar es Salaam
PW704 DAR1030 – 1140FBM1230 – 1320LUN1410 – 1655DAR 733 357
Dar es Salaam – Lilongwe – Harare – Dar es Salaam
PW705 DAR1030 – 1105LLW1155 – 1305HRE1355 – 1640DAR 733 246

Precision Air Introducing Harare Service

Tanzanian based airline, Precision Air will begin service to Harare International Airport starting June 2nd, 2012. The flights will be operating on a 3 week basis, Tuesday, Thursday and Saturday out of Dar Es Salaam via Lilongwe.
PW 705 departs Dar Es Salaam at 10.30am arriving in Lilongwe at 11.05am before proceeding to Harare where arrival time will be 1.05pm. The return journey departs Harare at 1.55pm arriving in Dar Es Salaam at 4.40pm. No official announcement has been made about this route but flights are available for booking through online agents.