AB snubbed free turnaround consultancy

Air Botswana plane PIC: MORERI SEJAKGOMO
Air Botswana plane PIC: MORERI SEJAKGOMO

National flag carrier Air Botswana (AB) is reported to have snubbed assistance from a reputable Canadian consultant company to overturn its fortunes. Mmegi has established that the consultant company, NEXTFLIGHTAIR, which has offices in Canada and Germany is said to have been turned down after offering to assist in transforming the troubled AB into a profitable corporation in 2015, for two years free of charge.

The consultant had promised to turn the fortunes of the national airline by operating a safe airline while increasing the frequency of the flights and use of cost-effective equipment.  NEXTFLIGHTAIR is an international aviation consultant company that specialises in working with struggling national flag carriers to help them stay afloat by providing expertise in equipment purchasing and spares, analysis and running a successful commercial airline. The consultant company uses its expertise and airline’s equipment sitting idle to help airlines achieve their operational goals.  AB has been cash-strapped for many years, costing government millions in the process. The problems at the airline have been blamed on poor management and failure to operate an efficient airline.  The airline currently operates without chief executive after the Minister of Transport and Communications Tshenolo Mabeo fired its former General Manager Ben Dahwa and board in November 2015 citing non-performance.  Mmegi has learnt that in January 2015 NEXTFLIGHTAIR approached Mabeo with a proposal with a view to help AB turn over its fortunes. The proposal, penned by the consultant company president Tan Ahmed, included an analysis of the current aviation market in Africa and what AB needed to optimise results. The consultant had also proposed the use of efficient aircraft such as ATRs while suggesting that BAE 146 needs to be sold, as it is expensive to maintain because of its old age and technology. Currently AB operates seven flights, which include ATR 42, ATR 72 and BAE 146. Ahmed, who also owns an airline, confided in Mmegi that Mabeo had entertained the proposal from them (NEXTFLIGHTAIR), but later reneged on it. He said in March 2015, he held meetings with Mabeo, permanent secretary in the ministry, former general manager Dahwa and other officials from the ministry and AB but heard nothing since. He said no explanation was rendered as to why his proposal was snubbed although he offered to assist the airline for free. He accused the leadership of failing AB and in turn claiming that it is not profitable. “We presented this proposal without asking any money which no one will do it,” said Ahmed who also own Nextjet Canada airline. It ‘s sad when they tell the public that the airline is bankrupt.  It is not the airline it is the people who made it bankrupt.” He said that they had promised to turn AB into a profit-making airline within two years by increasing more destinations, number of passengers and cargo by operating it effectively with maximum utilisation of equipment and employees. He said that wages and fuel are two major expenses of any airline, but indicated that AB has failed to take advantage of the recent decline of fuel prices. Ahmed indicated that the current market suggests that in Botswana and African region, an airline can operate with 35 to 70-seater aircraft to make a huge difference on margin and cost per mile. He pointed out that operating low cost carriers would be good for AB and suggested that the airline should consider operating twin-engine aircraft only, as the four-engine aircraft are costly to maintain.  He explained that they intended to replace the older BAE 146 with cost-effective jets that will save 30 percent in operational cost and add 20- seater turboprops aircraft to do domestic flights. this, he said, would bring 10-15 percent of total revenues. The proposal also included adding a vacation product line to AB and selling it via Internet. He added that a skilled marketing team would increase average passenger load to 70-80 percent range, followed by eight to 10 percent of cargo volumes at the end of the project while providing reliable and convenient airline to customers.

*Meanwhile Zimbabwe’s Herald reported online that the country’s government rejected a similar proposal from the Canadian aviation firm, an arrangement that would have helped AirZim acquire five more aircraft and grow its revenue by $500,000 a month.

Editor's Comment
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