Rwandan government launches aviation umbrella company to streamline the sector

RWANDAN GOVERNMENT PROPOSES NEW AVIATION STRUCTURE

(Posted 26th October 2015)

Reports coming out of Kigali suggest that Rwanda’s aviation industry is set for a new structure, following the formation of a new holding company named as ATL Limited. ATL, according to information received, stands for Aviation, Travel and Logistics and the company will act as an umbrella organization for, among others, RwandAir, Akagera Aviation and the Rwanda Airports Management company.

It is understood that the Rwanda Civil Aviation Authority will remain as national aviation regulatory body in line with recommendations from such bodies as ICAO, which for some time has proposed to members to keep management and regulatory functions in aviation separate. Draft legislation, it is understood, is presently being finalized and will be sent to the Rwandan parliament in due course for deliberations.

RwandAir has undergone tremendous growth over the past few years and the present fleet of eight aircraft will grow by another four next year, including two wide body Airbus A330’s and two Boeing B737-800NG’s, allowing the airline to go intercontinental for the first time in its history. The airline was given a further boost when during the last Head of State Summit of the Northern Corridor Integration Project countries the presidents directed that by January next year all pending non tariff barriers and other obstacles be removed to create a single NCIP airspace in which RwandAir can then operate freely. The particular focus of that decision was to give both Uganda and South Sudan added aviation services int the absence of a national airline in these two countries, saving the taxpayers mega bucks while still providing the connectivity to and from Uganda and South Sudan which in the past has been in short supply.

Alongside has the Rwandan government more than doubled the capacity of the present international airport in Kanombe (IATA: KGL / ICAO: HRYR) while a brand new taxiway is under construction and due for completion by the time the first Airbus A330 is due for delivery in September next year. In addition is a completely new international airport planned at Bugesera, about 20 kilometres south of the Rwandan capital.

The new arrangement is according to the source in Kigali aimed to bring all aviation services under one roof and ensure that through synergy effects cost savings can be implemented across the board while maximizing revenues.