The battle to control Tanzania’s skies has taken a new twist after Fastjet, a low-cost airline which entered the market with a bang, strongly opposed Precision Air’s(PW) decision to seek a bailout amounting to $32 million (51.2bn/-) from the government.
Fastjet has termed the move as unfair, saying if the bailout is granted, it would adversely affect competition in the aviation industry in Tanzania.
But it is not clear why Fastjet sees the move as unfair while when the low-cost airline announced its lowest fare of $20 per one-way ticket, neither Precision Air nor Air Tanzania complained about the move.
In what points to a looming business war between the two airlines, Fastjet chief commercial officer Richard Bodin says that bailing out PW using taxpayers’ money would create an unfair playing field among operators who are competing in the market.
Fastjet has termed the move as unfair, saying if the bailout is granted, it would adversely affect competition in the aviation industry in Tanzania.
But it is not clear why Fastjet sees the move as unfair while when the low-cost airline announced its lowest fare of $20 per one-way ticket, neither Precision Air nor Air Tanzania complained about the move.
In what points to a looming business war between the two airlines, Fastjet chief commercial officer Richard Bodin says that bailing out PW using taxpayers’ money would create an unfair playing field among operators who are competing in the market.
He says if Precision Air is bailed out, similar assistance should be extended to both Air Tanzania and Fastjet if the government wants to a create competitive and fair aviation industry.
Source: The Citizen, reported by Samwel Kamndaya from Dar es Salaam, Tanzania
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