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Precision Air

Precision Air
IATA ICAO Callsign
PW PRF PRECISION AIR
Founded 1993
Arusha, Tanzania
AOC # 032
Hubs Julius Nyerere International Airport
Focus cities Mwanza Airport
Frequent-flyer program PAA Royalties
Alliance Kenya Airways
Subsidiaries Precision Handling Limited
Fleet size 10
Destinations 9
Company slogan You Are Why We Fly
Headquarters Dar es Salaam, Tanzania[1]
Key people
Revenue Decrease TSh 141.3 billion (FY 2014)
Profit Increase TSh (11.4) billion (FY 2014)
Website .comprecisionairtz

Precision Air Services Plc (operating as Precision Air; DSE:PAL) is a Tanzanian airline based at Julius Nyerere International Airport in Dar es Salaam,[2] with a minihub at Mwanza Airport.[3]

In 2013, it had the largest market share of 48.33 per cent.[4] The airline operates scheduled passenger services to Nairobi and airports in Tanzania.[5]

Contents

  • History 1
  • Corporate affairs 2
    • Shareholders 2.1
    • Business trends 2.2
  • Destinations 3
    • Codeshare agreements 3.1
    • Interline agreements 3.2
  • Fleet 4
    • Current fleet 4.1
    • Retired fleet 4.2
  • Accidents and incidents 5
  • References 6
  • External links 7

History

Precision Air was incorporated in Tanzania in January 1991 as a private airline and started operations in 1993.[1] At first, it operated as a private charter air transport company but in November 1993 changed to offering scheduled services to serve the growing tourist market.[6][1]

In 2006, Precision Air became the first Tanzanian airline to pass the IATA Operational Safety Audit.[7] Its registration will expire 22 September 2016.[8]

In April 2011, the airline became a public company.[1]

Corporate affairs

Shareholders

Precision Air was privately owned until 2003, when Kenya Airways acquired a 49 percent stake, paying US $2 million, weeks after its rival South African Airways acquired a 49 percent stake in Air Tanzania for US $ 20 million. The remaining 51 percent was retained by Michael Shirima, the founder of the airline.[2][9]

In October 2011, Precision Air floated shares in the airline stock in an initial public offering on the Dar es Salaam Stock Exchange, after which Shirima's and Kenya Airways's stakes declined and the new share subscribers owned 15.86 percent.[10] As of March 2013, the major shareholders were:[11]

A Precision Air Boeing 737-300 at Mwanza Airport in 2010
A Precision Air ATR 72-212A at Jomo Kenyatta International Airport, Nairobi, in 2012
Name No. of Shares Interest
Michael Shirima 68,857,650 42.91%
Kenya Airways 66,157,350 041.23%
Precision Air Employee Share Option Scheme 1,765,300 1.10%
Other shareholders 23,689,500 14.76%
Total 160,469,800 100.00%

Business trends

The trends for the Precision Air group over recent years are shown below. Because it was a private company until 2011, published figures were not generally available before the initial public offering prospectus[1] of 12 September 2011. The figures for the group (Precision Air Services Plc and its subsidiaries Precision Handling Limited and Precise Systems Limited) (as at year ending 31 March) are:

A Precision Air ATR 42-300 at Kilimanjaro International Airport in 2006
2007 2008 2009 2010 2011 2012 2013 2014 2015
Turnover (TZS m) 54,341 57,988 84,344 92,493 113,606 163,061 181,358 141,262 105,400
Profits (PBT) (TZS m) 5,534 5,671 2,818 1,924 2,159 1,841 −30,812 −11,400 −83,900
Number of employees 576 657 704 717 608
Number of passengers ('000) 465 538 667 825 896 688
Passenger load factor (%) 64 58 62 65
Number of aircraft (at year end) 10 10 11 12 10
Notes/sources [1] [1] [1] [1] [11] [11][12] [13] [14] [15]

Precision Air reported in August 2013 that for the year ending 31 March 2013, its maintenance costs increased to 23.6 billion Tanzanian shillings from 11.9 billion for the previous year. The increase was caused primarily by the high cost of maintaining its Boeing 737 fleet.[16]

Published reports in June 2013 indicated that Precision Air had encountered substantial financial difficulties, stemming in part from losses incurred while operating flights to and from Johannesburg, South Africa.[17] Those flights ended in September 2012.[18] The Citizen, a Tanzanian newspaper, reported in August 2013 that the airline "desperately" needed a US $32 million bailout package from the Tanzanian government or other non-shareholder sources.[19] The airline's problems increased in 2011 when it received only US $7.4 million of the US $17.5 million in cash that the airline hoped to receive when first listed on the Dar es Salaam Stock Exchange.[19][20] Increasing fuel prices, taxes, and levies plus currency fluctuations and the refusal of minority owner Kenya Airways to contribute capital had also hurt the airline.[19]

Destinations

As of September 2014, the airline serves the following destinations:

Hub
Future
Suspended route

Codeshare agreements

Precision Air has codeshare agreements with the following airlines:

Interline agreements

Precision Air has an interline agreement with Qatar Airways, allowing the latter's passengers to connect to other East African destinations such as Arusha and Zanzibar via Julius Nyerere International Airport in Dar es Salaam and Kilimanjaro International Airport.[24] This agreement includes e-ticketing.[25]

Precision Air also has interline agreements for baggage and paper ticketing purposes with Alitalia, British Airways (also e-ticketing), Delta Air Lines (also e-ticketing), TAAG Angola Airlines (also e-ticketing), Emirates, Ethiopian Airlines (also e-ticketing), Etihad Airways, Gulf Air, Air Seychelles (also e-ticketing), Hahn Air (also e-ticketing), KLM (also e-ticketing), Kenya Airways (also e-ticketing), Swiss International Air Lines, Egyptair, Air Malawi, South African Airways (also e-ticketing), SN Brussels Airlines, Saudia, LAM Mozambique Airlines (also e-ticketing), Virgin Atlantic Airlines (also e-ticketing), RwandAir, Oman Air, Heli Air Monaco, and Zambezi Airlines.[25]

Fleet

Fleet

Current fleet

The Precision Air fleet includes the following aircraft (as of May 2015):[26][27]

Retired fleet

The company has previously operated the following equipment:

Accidents and incidents

According to Aviation Safety Network, as of September 2014 Precision Air has had four accidents or incidents.[29]

  • 26 July 1999: A Let L-410UVP-E9, tail number 5H-PAB, made a belly landing at Arusha Airport on a training flight while doing touch and go. The two crew and three passengers were not injured.[30]
  • 16 November 2004: A Let L-410UVP-E20, tail number 5H-PAC, crash landed while on a training flight at Kilimanjaro Airport. The two pilots, who had not put on their shoulder straps, sustained facial injuries.[31]
  • 8 July 2007: An ATR 72-212, tail number 5H-PAR, had a runway excursion on landing at Jomo Kenyatta International Airport runway 06. It veered off to the right, went over a ditch, and came to a stop on Taxiway F. The nose wheel collapsed. The four crew and 62 passengers were not injured. The aircraft was substantially damaged. The probable cause of this accident was power asymmetry during application of reverse thrust on landing. The control levers were jammed in one position.[32]
  • 10 July 2014: An ATR 72-500, tail number 5H-PWA, was halfway en route to Dar es Salaam from Mwanza during normal cruise when the number 2 engine seized. This necessitated a diversion to Kilimanjaro International Airport. The aircraft touched down normally; however, after selecting ground idle (as per the captain's explanation), the aircraft veered to the left side and exited the runway hitting one of the runway edge lights and proceeded to roll on the grass field parallel to runway 09 for approximately 180 meters before subsequently regaining the runway. No injuries were reported.[33]

On 13 December 2013, an ATR 42-600 (5H–PWI) made a safe landing at Arusha Airport after its four tires deflated upon landing. All 37 passengers and 4 crew were safe. The airline subsequently explained that higher braking forces, necessitated by the aircraft landing with a tail wind, caused the deflations.[34]

References

  1. ^ a b c d e f g h i
  2. ^ a b
  3. ^
  4. ^
  5. ^ Travel Planner: Destinations, Precision Air, accessed 8 November 2014
  6. ^
  7. ^
  8. ^ Precision Air Services, Ltd., International Air Transport Association, accessed 28 September 2014
  9. ^ "Kenya Airways To Buy 49% of Precision Air"
  10. ^ Shareholding In Precision Air In June 2012
  11. ^ a b c
  12. ^ , 17 April 2013The Financial Junction"Super Brand Precision Air (PW) pleased with 2012/2013 performance",
  13. ^
  14. ^
  15. ^
  16. ^
  17. ^ , reported by Wolfgang H. Thome, 10 June 2013eTurboNews"Precision Air's financial troubles go into public domain",
  18. ^ , 27 August 2012Airline Route"Precision Air to Cancel Johannesburg Service from mid-Sep 2012",
  19. ^ a b c , reported by Veneranda Sumila, 14 August 2013The Citizen"Precision Air's Sh51bn bailout appeal to State",
  20. ^ "Precision Air looks to other lenders after poor IPO show", 'The East African', 4 December 2011
  21. ^
  22. ^
  23. ^
  24. ^
  25. ^ a b Travel Information, Expert Flyer, accessed 23 December 2014, subscription service
  26. ^ a b Tanzania's Precision Air goes all prop after last 737 is withdrawn
  27. ^ a b c
  28. ^ a b
  29. ^
  30. ^ Accident description for 5H-PAB at the Aviation Safety Network. Retrieved on 8 April 2012.
  31. ^ Accident description for 5H-PAC at the Aviation Safety Network. Retrieved on 8 April 2012.
  32. ^ Accident description for 5H-PAR at the Aviation Safety Network. Retrieved on 8 April 2012.
  33. ^ Accident description for 5H-PWA at the Aviation Safety Network. Retrieved on 2014-27-9.
  34. ^ "Update: Precision ATR 42-600 Blew All Main Tires on Landing at Arusha on Dec 13 Resumed to Service", The Aviation Herald, 17 December 2013

External links

  • Official website
  • Precision Air Sells Aircraft And Cancels Routes To Reduce Losses


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