19 Sep 2016

The acting general manager of Air Botswana, Ms Agnes Khunwane has confirmed that the airline has been operating at a loss for some years due to a number of challenges.

Appearing before the Parliamentary Committee on Statutory Bodies and State Enterprises on September 15, Ms Khunwane said the airline had experienced a P165 millions loss as of March 2015.

She said their main challenge had been equipment failure and attributed P90 million of the total loss to maintenance costs.

She said a number of aircrafts in the airline’s fleet were old and had been going through heavy airframe maintenance checks, and that most were grounded for good.

The general manager said some of the challenges were due to an old IT system, adding that they had to invest on the “in technology.”

She nevertheless said there had been an improvement in regard to departure times which stands at 80 per cent.

Ms Khunwane said the board had come up with a five-year turnaround strategy which came into effect in March this year.

She said the organisation was working on a strategy that was expected to look at the airline’s operations, including the rationalisation of route network and schedule, review of internal processes and procedures, use of technology to enhance delivery, fleet upgrade and equipment renewal.

She said they had had all their jet fleet grounded since February 2015 and that one was sold in May 2016.

She also stated that they need about P2.3 billion for a fleet of seven aircrafts, saying currently the airline was leasing a jet aircraft which operates the Gaborone-Cape Town route at a cost of P3 million a month.Ms Khunwane also highlighted that they had not requested for funding, but that the minister was aware of their needs.

She said a formal request would be submitted after a consultant that has been hired submits a report on October 4.

She, however, said she believed that the turnaround plan would be the one to bring back the airline into profitability.

She also revealed that most of the routes were not profitable, saying they made losses of P13 million for the Cape Town route. ENDS