in Air Transport

Botswana government begins Air Botswana privatisation drive

Posted 14 February 2017 · Add Comment

The Botswana government has begun the process of privatising loss-making national carrier Air Botswana, reports ch-aviation.

In its call for Expressions Of Interest (EOI) issued last week, the Ministry of Transport & Communications (MTC) said it was looking for suitable entities, companies, consortiums, or service providers capable of offering efficient and reliable air services to the needs of Botswana's business and tourism sectors through Air Botswana. 

The EOI, it said, is to determine the level and type of interest there is currently on the market. As such, the MTC says it is open to receiving proposals for privatization including ownership, joint-ventures, franchising, concessions, partnerships or any other arrangement with commercial air carriers or investors able to competently manage and run the airline. 

"While Air Botswana has not been profitable in recent years, it has developed a Five-Year business plan to address this and has already taken some necessary actions by restructuring, reducing staff numbers, and ceasing operations on its worst performing routes," said a representative. "During the financial year ended March 31, 2016, Air Botswana reduced its losses by nearly 50% and continues to operate efficiently with the year to date unaudited results, showing a 44% improvement on prior year's performance. The airline has a good base of knowledgeable and experienced people." 

Submissions are due by February 28.

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