Tanzania airlines downplay Fly540 arrival

Its competitors — ATCL and Precision Air — are charging the return ticket price of between Tsh335,000 and Tsh400,000.

ATCL and Precision Air managers said they would not compete on a price basis because it was not sustainable.

“It seems a new player has started with a low fare to be able to compete. However, we do not think it will affect our competitiveness,” said ATCL managing director David Mattaka.

Precision Air commercial director Phil Mwakitawa said it was normal for competitors to employ different strategies to attract clients.

“We do not know what Fly540’s entry strategy is, though we are aware it’s currently selling tickets at promotional fares that are very low and not sustainable in the long run. We have seen other players come into the market in the recent past with such low fares only to wind up their operations sooner than anticipated,” he told The Citizen.

While saying that such a cut-throat competition on a single route was not a big deal, Mr Mattaka urged the new players to also consider opening up new routes.

In 2008, the Tanzanian aviation market was subjected to the same stiff price competition on the same Mwanza-Dar es Salaam route when Community Airlines launched its operations.

It charged airfare as low as Tsh179,000 for a return ticket, but it has since suspended its operations for unclear reasons.

Mr Mwakitawa said the Precisionair’s preference was to compete on service levels in the Mwanza route.

Meanwhile, India plans to double support to Tanzania’s agricultural sector this year.

The Indian high commissioner to Tanzania, Mr Kocheril Bhagirath, said over the weekend that his country’s efforts are geared towards helping Tanzania reduce food shortage and poverty.

He was speaking on the sidelines of the 62nd Republic Day of India, in Dar es Salaam.

“We hope to double our bilateral support in 2011 to Tanzania and agriculture will be our priority area to help the country achieve the green revolution and food security,” he said.

The support would include transfer of technology and innovation to partly increase the capacity of Tanzania to predict changing weather patterns.

Already India’s support for Kilimo Kwanza (Agriculture first) initiative saw the arrival of the first batch of 1,688 tractors, power tillers and water pumps.

The deputy minister for foreign affairs and international cooperation, Mr Mahadhi Juma Mahadhi, acknowledged the valuable contributions made by Indian companies and nationals who have invested in various sectors of the economy.