Air Botswana adds three jets to growing fleet
Pauline Dikuelo - Sharon Mathala | Monday June 3, 2024 08:01
Announcing the development on Wednesday, Air Botswana, Chief Executive Officer, Lulu Rasebotsa, highlighted that the expansion is part of a broader strategy to turn the national carrier around. “We have identified three aircraft, all fully paid for and we are on the market for the fourth one,” she said.
“They are all Embraer Jets. For now ATR’s will remain part of the fleet as the intention of re-fleeting is to minimise delays.” Rasebotsa said the addition of the new jests is expected to create more job opportunities, including positions for cabin crew, pilots and other airline staff. She said the development not only boosts the airline’s capacity but also promises enhanced service delivery for customers. Currently, Air Botswana’s fleet consists of an Embraer jet and three ATR’s servicing routes from Gaborone to Johannesburg, Cape Town, Kasane, Maun and Francistown.
Air Botswana also plans to introduce new routes to better serve travellers. Rasebotsa stated that the airline is currently benchmarking to ensure the new routes are implemented effectively, with the aim to meet customer needs and expand Air Botswana’s market reach. “The airline regards the acquisition of the Embraer jets and the expansion of routes as crucial steps towards achieving financial stability and operational efficiency,” Rasebotsa. In a bid to support local youth entrepreneurs, Air Botswana has also started incorporating products from entrepreneurs as snacks on its flights.
The initiative, the CEO said, provides exposure for local businesses and also offers passengers a taste of Botswana’s diverse and innovative food products. For many years, the state-owned national flag carrier has been entrenched in financial dire straits with the airline failing to break even due to low sales and high maintenance costs. Government has attempted to privatise Air Botswana four times in 2003, 2006, 2008 and 2017, each time failing due to investors withdrawing, or Cabinet rejecting terms offered. Early this year, the Minister of Finance shared that World Bank has been roped in to assist in feasibility studies.
This financial year, Air Botswana received a bailout of P121 million for the 2024-2025 financial year, which follows an allocation of P166 million, also a bailout last year. The funding was part of the ongoing government rescue missions for the airline, which has faced decades of unprofitability exacerbated by the global travel bans resulting from the COVID-19 pandemic. Air Botswana’s development funding in the Transitional National Development Plan (TNDP), which elapses in March next year, has been revised to P702.7 million over the two years of the plan.
Last year, Air Botswana revealed that it would be implementing a strategy that will reduce the national airline’s reliance on government subventions. Part of the plan includes more aggressively pushing Air Botswana’s cargo business. The national airline believes this particular area has the potential to significantly grow its revenue. Another part of the strategy involves the long awaited separation of Air Botswana’s ground handling operations into a stand-alone company. The separation would trim Air Botswana’s labour costs and allow the airline to focus on its core operations, while still deriving some income from the ground-handling subsidiary.