14 May 2017

Government, through the Ministry of Transport and Communications (MTC) decided in December 2016, to explore possible ways of mitigating Air Botswana’s woes, while keeping it running as a national flag-carrier and a key economic enabler in the transport and communications sector.
A press release from MTC states that in this regard, in February 2017, an Expression of Interest (EOI) was issued with a view to determining sustainable market driven and supported possibilities such as joint ventures, new equity partners, franchising, concession arrangements or any other arrangement that may be economically realisable.
It states that EOI process is one of the initial elements undertaken to inform the way forward and at this stage its results are under consideration. The government as a shareholder and through Cabinet is in the process of determining what rehabilitative steps are attainable and should be taken.

The process, says the release, includes looking at alternative or complementary ways of stabilising the airline within a path which gives regard to existing statutory requirements as appropriate. It says this is aimed at maintaining Air Botswana as a viable commercial entity which will not seek or require fiscal support citing that certain Cabinet instructions are in place to enable the process to move ahead.
However, management of the process is still internal to government as well as being subject to an ongoing consultations which are not similar to some speculative comments which have appeared in the media in the recent past, says the release.

The public and all other stakeholders are to take note that government is actively considering how to stabilise and retain Air Botswana as a national flag-carrier without having to perennially supporting the airline financially from public coffers, states the release. It further states that government is aware of recent media speculation regarding the unavoidable and pending transition of Air Botswana to a self-sustaining institution, but is constrained to comment on such speculations while still managing what is a commercially sensitive matter.
In due course, states the release, the ministry or government will publicly share what properly ought to be shared, which include aspects of procurement and any operational or strategic considerations that the interested public or any relevant stakeholder is entitled to know and examine.

Any actions undertaken by Cabinet thus far, says the release, have followed the normal and long established processes of making government decisions.
It also states that in recognition of Air Botswana’s status as a public and national flag carrying entity, the ministry has decided to share this information regarding the airline current commercial/financial status as well as on the steps underway to keep it going. ENDS