Air Tanzania

Air Tanzania is the national airline of Tanzania, and was originally wholly owned by the Tanzanian government via the Air Tanzania Corporation (ATC). In 2001, the government began the process of privatizing the corporation. Initially, eight airlines expressed an interest in the privatization of ATC. By August 2002, South African Airways (SAA) and Kenya Airways were the only two remaining actively interested parties. By the bid submission deadline of September 19 2002, only SAA had submitted a bid. In December 2002, SAA purchased a 49% stake in ATC for $20 million USD after they signed an agreement with the government. As a result of this transaction, the core operating assets of ATC were transferred to a new company called Air Tanzania Company Limited (ATCL). The government is expected to sell 10% of its current 51% stake to a private Tanzanian investor, thereby reducing the government's ownership to a non-controlling interest in ATCL.

ATCL operates mostly domestic and regional flights but does have some international routes into Europe. ATC owns two B737-200 aircraft and leases a B737-300.

References

• Air Tanzania Corporation
• SAA-ATC Deal Sealed