Air Tanzania (TC, Dar es Salaam) backer, the Tanzanian government, has continued to drag its heels over the expungement of the carrier's legacy TZS133billion (USD78.8 million) debt despite foreign interest in the airline.
The country's Guardian newspaper says Dodoma's refusal to offer immediate help to solve the national carrier's perennial debt problems has scared off investors who are keen to develop the airline into a viable regional and international operation.
Minister for Transport Dr Harrison Mwakyembe, whose portfolio oversees the airline, warned Tanzania's parliament last week that discussions with investors can only begin once government has assumed Air Tanzania's debt.
“The ministry has submitted business plan on how to revive ATCL and we are just waiting the process to be completed,” he said.
Dodoma also rejected a proposal from the country's largest private operator, Precision Air (PW, Dar es Salaam), to acquire equity in the struggling airline in return for a government-funded bailout.
The airline has been courted by various investors including the mysterious Al Hayat Development and Investment LLC, an Oman-based firm that has proposed a USD100million investment in the carrier.
JoyAir (JR, Xi'an Xianyang), Emirates (EK, Dubai International), and Turkish Airlines (TK, Istanbul Airport) have all reportedly expressed an interest in the airline though it is believed a due diligence of Air Tanzania's current business standing has scared them off.
