02 Mar 2015

Government in 2014 engaged ICF Management Consultants to assist in developing a turnaround strategy for Air Botswana and have since recommended that the Maun/Cape Town direct route, should be operated twice a week via Gaborone, Minister of Infrastructure, Science and Technology, Mr Nonofo Molefhi, has said. 

Responding to a question on behalf of Minister of Transport and Communications he said this will result in combining passengers on this route with the current Gaborone/Cape Town passengers. It is envisaged that this will effectively increase passenger convenience through increased frequencies, as well as increasing load factors whilst reducing operational costs to curb the losses. 

He said the frequency will be increased to four times weekly from April 2015. The minister said the revenue for the route since its inception ranged between P7 448 000 and P12, 79 million per annum while the operating costs ranged between P25, 36 million and P30, 86 million per annum leading to a loss of between P17, 9 million and P18, 07 million. 

Mr Molefhi said the operation of Cape Town/Maun route started in June 2012.  The route was available for sale on Air Botswana system effective April 2012. 

He said a special promotional fare of 45 percent from the normal economy fare was run as from May 2012 to October 2012 which was meant to stimulate the market as the route was at a development phase. 

He said by the end of 2012/13 financial year, Air Botswana evaluated performance of this route and decided to terminate the route due to high operating costs such as sourcing of spare parts, sudden equipment breakdowns and high maintenance cost.

 He said government however recognised the strategic importance of this route to Botswana tourism and requested Air Botswana to continue operating it. The minister said a sum of P30 million subvention was provided by the government for the operation of this route and other routes. 

Mr Molefhi said on average the number of passengers carried between 2012/2013 was 381 per month and in 2013/2014 was 328 passengers per month, while for 2014/2015 was roughly 418. 

Mogoditshane MP, Sedirwa Kgoroba had asked the minister to give a profit and loss analysis of the profitability or non-profitability of Air Botswana’s Maun/Cape Town route. ENDS