Carriers vie for Air Botswana

COMAIR and Airlink will
throw their hats into
the ring for a deal
with national carrier, Air
Botswana, which is again up
for privatisation.
The Botswana Ministry
of Transport and
Communications has
called for expressions
of interest (EOI) by
suitable entities to make
proposals for privatisation.
Ownership, joint ventures,
franchising, concessions
and partnerships will be
considered. Proposals were
due by February 28.
The airline attempted
privatisation back in
2007, a process that was
ultimately dropped. At the
time, Comair and Airlink,
among others, expressed
interest.
Ceo of Airlink, Rodger
Foster, who at the time was
engaged in extensive talks
with government officials,
said recent conversations
had been held with people
in high places in Botswana,
and there did seem to be
some sincerity this time
round, on budget and the
government’s appetite
to see the privatisation
process through.
Rodger said Airlink had
a successful model in
Swaziland Airlink, which
has been operational since
1999 and paid dividends
to both its shareholders –
the Swazi government and
Airlink. “We will respond
to Botswana’s request
for proposal,” he said.
“Although we are not sure
we understand exactly what
the Ministry is looking for,
we will let them know that
we would be delighted to
help them find a solution.”
Comair ceo, Erik Venter,
was quoted in recent press
reports saying that the
airline would seek equity in
and control of Air Botswana.
A management contract
would also be considered
on the basis that a large
amount of management was
conducted from Comair, to
achieve economies of scale.
Erik expressed doubt that
Air Botswana would attract
cash offers.
Air Mauritius, which also
held talks with Botswana in
the previous privatisation
attempt, had made a
decision not to proceed this
time, said regional manager:
Southern Africa and Latin
America, Carla da Silva.
According to the EOI, Air
Botswana has not been
profitable in recent years
but has developed a fiveyear
business plan and
has undertaken some
restructuring towards
increased profitability by
reducing staff numbers and
withdrawing from poorly
performing routes, recently
halting services to Harare
and Lusaka. During the
financial year ending March
2016, losses were reduced
by close on 50%. Unaudited,
year-to-date results show a
44% improvement on the
previous year.