Air Botswana, the national airliner’s sale is once again on the cards due to its continued loss in revenue. According to the newly appointed Minister of Transport and Communications Kitso Mokaila government will not reinvest in Air Botswana as it was previously thought.
The previous Directors of the national carrier had before leaving office submitted the airline strategy that was intended to guide the carrier into the future. Key amongst recommendations provided by the strategy was to recapitalize the struggling national carrier.
This week, Mokaila told parliament that with the current financial challenges facing Government, the Executive has taken the decision that Government will not reinvest in Air Botswana but rather look for strategic partners. “We are currently going through the process of looking for a strategic partner to assist Air Botswana in the direction we want it to go,” Mokaila said.
An economist at University of Botswana who commented on anonymous basis says not reinvesting on Air Botswana is a clear case of privatization and consistent with government policy of privatizing some of its state owned entities. “There is a trend which shows that government has taken a position to relinquish/sell its shareholding in most of state entities,” he said, citing examples such as BCL. The economist says by not reinvesting in Air Botswana it means the airline would not be able to expand its operations. “Partnering with a private company will bring the aspect/culture of profitability to the airliner something that has been lacking,” he added.
Despite numerous Multi-million Pula bailouts, Air Botswana remains a troubled quasi-government entity, which lacks consistency in flight times and schedules, while its aged fleet is consistently under maintenance. The airliner has been in urgent need of re-capitalization, which government has not availed to date. The Business Weekly & Review last year asked the then Minister of Transport and Communications Tshenolo Mabeo if a delay in re-capitalization failed Air Botswana. His answer was that re-capitalization alone would not on itself bring efficiency and excellence, but rather that only a visionary leadership with a good strategy would do so.
When Air Botswana’s previous Chief Executive Officer (CEO), Ben Dahwa was fired this publication was informed by Mabeo that after a new CEO is found re-capitalization would quickly be rolled out to ensure that air transportation becomes effective. During that time Mabeo said that he would not re-capitalize the parastatal at a time when it was in the ‘wrong hands as it would be a wastage. He said Air Botswana is an economic enabler by creating ease of access to various places especially in the tourism sector”.
Previous Directors of Air Botswana submitted a comprehensive turnaround strategy to cabinet that suggested re-fleeting the airline, adding more destinations, a vigorous marketing for Air Botswana and ICT Automation, a strategy which cabinet did not act upon at the time. By re-fleeting, industry experts argue, the carrier’s competitiveness would have been enhanced whilst on the other hand save costs by not spending on maintaining the old fleet.
In September this year it was revealed before the Parliamentary Committee on Statutory Bodies and Public Enterprises that Air Botswana entered into a $7 million (P81 million) aircraft engine maintenance contract without board approval, contrary to Air Botswana Act. The Acting Air Botswana General Manager told the committee that shortly after Minister for Transport and Communications (MTC) Tshenolo Mabeo dissolved the board, his Permanent Secretary (PS) Neil Fitt approved a request to enter into a three-year contract with Pratt and Whitney Canada without open invitation for tender.