PRECISION AIR HOLDS FIRST AGM AFTER IPO OF LAST NOVEMBER
Tanzania’s premier airline, Precision Air, held their first post IPO Annual General Meeting.
The carrier’s management revealed a sharply improved financial performance, aided by stronger demand, the introduction of new domestic and regional routes and their ability to handle their own flights instead of having to pay a third party contractor.
Revenues for the financial year, which ended on 31st March, exceeded 163 billion Tanzania Shillings but a sharp increase in cost, mainly fuel, brought profits down to a mediocre 634 million TShs for the year inspite of a gross profit rise by over 18 percent. Fuel expenses, the airline stated, reached 48 billion TShs for the year, an increase of over 130 percent compared to the 2010/11 financial year.
The funds raised by the IPO were largely used to order additional ATR-42-600 and ATR-72-600 aircraft as well as to lease additional B737-300 jets, allowing for the planned rollout of new destinations.
Precision Air is the first airline in Tanzania to ever be listed on the stock exchange and the IPO added over 7.000 new shareholders, making it truly a national airline, even if the Tanzanian government continues to stick their head in the sand by continuing their unsustainable paymaster status for failed Air Tanzania. Watch this space.
