COLUMNBy Kasera Nick Oyoo Midastea
The dust has settled and Air Tanzania Company Limited (ATCL) is now the proud owner, nay operator of two brand new aircraft. That is good news, but blind patriotism can be a bad business advisor.
I have time and again heard comments along the lines of: “If a small country like Rwanda has a successful national carrier, we surely can make ATCL a success too.” This is not sound business advice.
It is better we carry out a thorough institutional audit, conducted not by political mavericks in the ruling party or otherwise, but by seasoned independent business advisors.
Terms of reference could include a clause that they are free to advise against the revival of ATCL if their findings strongly point in that direction. The horse may already have bolted by now as ATCL’s resuscitation is in full throttle.
There are strong grounds both for and against the revival of ATCL. Proponents of the airline’s revival have put forward their arguments. These include the fact that Tanzania is a vast country, which requires quick, reliable and affordable air transport to enable people travel faster and safely.
That two new aircraft have been bought shows that proponents of ATCL’s revival have won hands down, but there is an old saying that you can take the cow to the river but cannot force it to drink water.
In other words, we can buy aircraft, settle ATCL’s debts and restart flights between various domestic destinations, but can this alone ensure the airline’s survival, let alone make it a profitable entity?
Operating a commercially viable airline is no child’s play as carriers such as once-mighty European carriers Lufthansa, Alitalia and Sabena, among others, can attest. Closer to home, Kenya Airways could also make a good case study. Known as KQ, the public listed airline has in recent years been lurching from one crisis to another and its rosy days are definitely behind it.
Air transport business is not solely about owning aircraft. Although having own aircraft is good, leasing can make plenty of business sense. ATCL has a small fleet, which may work in its favour. However, reality will soon dawn on us when our two new beauties take to the skies. The airline that earned itself the moniker “Any Time Cancellation” must ask itself why it failed to meet its obligations to its faithful customers in the past.
The intention of this column is not to belittle what President John Magufuli has delivered for long-suffering ATCL customers. This is a wake-up call that should make pilots, cabin crew, ground staff and other ATCL employees rethink their role as the carrier is about to rise from the dead.
In a market where similar businesses are facing imminent collapse, wisdom demands that you shouldn’t test the depth of the river with both feet. It is risky. Let the staff rededicate themselves to delivering nothing but the very best customer service. The business-as-usual attitude of wives, daughters and sons of leaders who have turned ATCL into a kijiwe must come to an end.
Airlines from the Gulf, notably Qatar Airways and Emirates, seem to be doing well. They get government subsidy on jet fuel and are generally cushioned from currency fluctuations, but it is a different story for ATCL and other African carriers.
ATCL it will remain relevant only if it focuses on delivering unmatched service. It needs passengers to vote with their feet and walk away from the competition, but this can be achieved only if their experience exceeds expectations. In this day and age of social media frenzy, every action will be closely watched and commented on.
Winning the battle of the skies depends not on the two newly acquired beauties, but on excellent customer service. In other words, the sky should be the limit for ATCL as far as customer service is concerned.