Govt throws a lifeline to Air Botswana

Boitshepo Majube | Wednesday December 11, 2013 15:35

 

 “Currently, we are paying management consultancy fee for Air Botswana,” Molefhi said.

He however could not disclose the amount set aside to help the national airliner on approval by Parliament.

Molefhi also stated at the recent Hospitality and Tourism Association of Botswana (HATAB) conference that they are looking at helping Air Botswana to overcome its challenges, and compete in the market.

The Managing Director of Air Botswana Joe Motse recently said that the government has pledged to re-capitalise the state-owned airline.

The national carrier has for a long time been grappling with financial and operational challenges due to ageing or shortage of aircraft.

Motse said at a press conference recently that the re-capitalisation would help to increase and augment the fleet. However, he declined to give details about the re-capitalisation deal.

“We will let you know very soon,” he said about the deal.

Recently, an official in the Ministry of Transport and Communications told Mmegi that Air Botswana needs to replace its current fleet.

“Air Botswana needs to re-fleet and replace the current aircraft they are using with new jets that are suitable for the air transportation business,” he said.

The official said a strong Air Botswana would help the country in its quest to become a transport hub in the region. 

Presenting the 2008 budget, then Finance Minister, the late Baledzi Gaolathe, announced that the government had set aside P103 million to re-capitalise Air Botswana.

The funds were meant to cover the costs of overhauling the French-made ATR aircraft and disposal and replacement of the loss-making British-made BAE 146-100 plane, improvement of staff salaries and hiring a management contractor.

Gaolathe announced then that the airline had recorded a P15 million net profit for eight months up to November 2007, as compared to P39 million in the year to March 2007.

Due to fleet challenges, Air Botswana was recently forced to combine flights to transport passengers to various destinations in the country. Alexander Lebedev, listed in 2008 by Forbes magazine as one of the richest Russians, was once said to be interested in taking over the airline.

European aircraft maker, Airbus recently released new catalogue prices of its commercial jets - with the biggest passenger plane, the A380 nudging up to $389.9m (£251m).