{"id":16294,"date":"2022-11-15T13:33:50","date_gmt":"2022-11-15T13:33:50","guid":{"rendered":"https:\/\/www.africa-press.net\/eswatini\/all-news\/over-e70m-used-in-eswatini-airs-delayed-debut"},"modified":"2022-11-15T15:24:11","modified_gmt":"2022-11-15T15:24:11","slug":"over-e70m-used-in-eswatini-airs-delayed-debut","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/eswatini\/all-news\/over-e70m-used-in-eswatini-airs-delayed-debut","title":{"rendered":"OVER E70M USED IN ESWATINI AIR\u2019S DELAYED DEBUT"},"content":{"rendered":"

Africa-Press – Eswatini. <\/strong><\/span>It has already cost government E21 million to facilitate the application of the much-awaited Air Operating Certificate needed for Eswatini Air to hit the skies.<\/b><\/p>\n

This amount is on top of the about E50 million that was used to purchase two airplanes that were earmarked to make their flights debut on the regional airspace in June.<\/p>\n

However, there has been a delay in the entity\u2019s first flight following a delay in the certification process.<\/p>\n

The amount that has already been spent on the licence application was revealed by Minister of Public Works and Transport Chief Ndlaluhlaza Ndwandwe when responding to a question by Dvokodvweni MP Mduduzi Magagula, who wanted to know the total cost of getting the certificate and if the budget was available to finance the full process.<\/p>\n

\u201cApplication of the Air Operating Certificate requires procurement of not only the airlines to be operated but also demonstration of existence of the full staff complement to operate the airline, passenger booking systems, insurances, operating manuals, training, subscriptions or accreditation, and route promotions.<\/p>\n

Excluding the capital costs of the aircrafts, the costs of other requisite costs without which the certification would not have progressed to the stage it is in now, is E21 million,\u201d the minister said.<\/p>\n

He assured the portfolio committee that the process was now at final demonstration stage after which the airline would be cleared to fly and carry passengers.<\/p>\n

He admitted that finalisation of the process had taken longer than planned and that the budget had been strained but pointed out that due diligence had been achieved.<\/p>\n

\u201cThe only high costs of the remaining period will be final compulsory maintenance of the aircrafts, IT systems licence renewals and personnel costs.<\/p>\n

Budget for these expenses are provided for through a shoe-string tension.\u201d<\/p>\n

Government announced plans to revive the kingdom\u2019s national airline after purchasing two aircrafts that will be operated by the Royal Eswatini National Airways Corporation (RENAC) \u2013 a category A public enterprise.<\/p>\n

This will not be the first time that Eswatini has a national airline, as it has on previous occasions operated the \u2018Lijubantsendzele\u2019 and also the \u2018Ludvondvolo\u2019 aircrafts.<\/p>\n

The two aircrafts are said to be Embraer ERJ-145 with each having a carrying capacity of 50 passengers.<\/p>\n

The purpose of RENAC reviving the national airline is to provide air travel from Eswatini to other destinations in the Southern African Development Community (SADC) region because currently, the only route connects to Johannesburg\u2019s O.R Tambo International Airport. Currently, the return airfare from the King Mswati III (KMIII) International Airport to O.R Tambo International Airport in is around E5 000.<\/p>\n

The initial time focused for the airline to hit the sky to mark the commencement of servicing the routes was the second quarter of 2022, but this has not happened due to the delay in securing the licence.<\/p>\n

Plans to revive the national airline began being spoken about back in 2013 by then director of the Eswatini Civil Aviation Authority (ESWACAA), Solomon Dube, who said this was meant to make the KMIII International Airport viable. Then, Dube had envisaged that the airline could start offering service in 2014.<\/p>\n

Eswatini\u2019s aviation history spans back to the 1970s and RENAC, then known as the Royal Swazi National Airways, started operations in 1978. Through the years, this airline operated central, eastern and southern Africa routes using the Fokker F28, Fokker 100, a Vickers Viscount and Boeing 737-200.<\/p>\n

Destinations it serviced included Cape Town, Dar es Salem, Gaborone, Harare, Johannesburg, Lusaka, Maseru and Nairobi.<\/p>\n

Times Aerospace reported in 2018 that once sanctions on South Africa were lifted in the 1990s, passenger numbers dropped, forcing the Eswatini Government to restructure the airline and ultimately sold off the last two aircrafts.<\/p>\n

This triggered Royal Swazi National Airways Corporation to cease airline operations in 1999 and subsequently, government formed a joint-venture partnership with Airlink South Africa to put up Eswatini Airlink, which has ably serviced the Johannesburg route over the years.<\/p>\n

Eswatini Airlink (Manzini, Matsapha), which was a joint venture between the country (Eswatini) and Airlink (South Africa) (4Z, Johannesburg O.R. Tambo) ceased operating on June 1, 2022, after the parties mutually agreed to dissolve the 23-year-old joint venture airline.<\/p>\n

In a statement, the shareholders announced the April 14 decision was made jointly and amicably following the government\u2019s recent re-establishment of a wholly-Eswatini owned national airline, – Eswatini Air, the new regional airline brand of State-owned RENAC.<\/p>\n

It was initially projected that from June 1, 2022, Airlink and the new Eswatini Air would compete in providing scheduled air services between Johannesburg\u2019s OR Tambo and King Mswati III International Airport.<\/p>\n

The plan was that the Eswatini Air would debut on Southern African regional routes using two EMB-145EPs.<\/p>\n

Eswatini Airlink currently operates multiple daily services between OR Tambo and King Mswati III International Airports, enjoying a 100 per cent market share.<\/p>\n

Subsequent to the establishment of the Eswatini Airlink, government announced the purchase of two aircrafts.<\/p>\n

Minister of Finance Neal Rijkenberg described the figures involved in the purchase as a good deal when informing members of the House of Assembly portfolio committee on finance.<\/p>\n

He stated that the aircrafts were not of a luxury nature, but commercial aeroplanes that had been bought at a reasonable price.<\/p>\n

However, the minister did not give the committee members the amount spent on purchasing the aircraft, askingto be given an opportunity to confirm the figures and include them in his written responses that would then be brought to the House.<\/p>\n

He was later quoted as confirming that the aircrafts were bought for a combined price of US$3.1 million, which is about E47.43 million when calculated at exchange rate of US1 equalling E15.30 at the time.<\/p>\n

The two aircrafts are the Embraer ERJ-145 and each has a carrying capacity of 50 passengers. They were bought from HOP!, which is a subsidiary of Air France. It was also reported that RENAC could have bought the aircraft for double the US$3.1 million had it carried out the purchase in 2019, where one aircraft was available for US$3.2 million and had a carrying capacity of 47 passengers.<\/p>\n

Rijkenberg said he was able to get one aircraft for US$1.5 million and the other for US$1.6 million. Even to the portfolio committee, the minister explained that Cabinet advised RENAC to buy the aircrafts when the market was down and COVID-19 provided that opportunity.<\/p>\n

\u201cThe whole market for aircraft was flat due to the outbreak of COVID-19.<\/p>\n

\u201cSo, RENAC saw it as an opportunity, as the prices were discounted. There is nothing hidden and I have no problem bringing the information on the price,\u201d he told the committee.<\/p>\n

The minister indicated that RENAC came to Cabinet where they outlined that with the buying of the aircraft, staffing of the aircrafts as well as paying for all the licensing and their refurbishing, it would all cost E100 million.<\/p>\n

\u201cI explained that to Parliament and they asked me how much the aircraft cost and I said I didn\u2019t know, but would go and verify the figure and include it in my report but now it is being said that I do not know the budget.<\/p>\n

The aircraft were bought for an absolute bargain. They told me it was a bargain but I wasn\u2019t aware how much,\u201d the minister was quoted as saying.<\/p>\n

Rijkenberg reiterated his support for the purchase of the aircraft and said he had confidence that even though the airline might not make money immediately, but the viability and value would be realised in the near future. \u201cFor the economy to grow, we cannot continue to be cut off from the rest of the world. Having flights to Cape Town, Durban, Harare and more competition on the Johannesburg route will help grow the economy,\u201d he said.<\/p>\n

While making his address before the portfolio committee, the minister said the bigger picture of the aircraft purchase would be seen in the investments that were being explored in various sectors, including tourism.<\/p>\n

He pointed out that the country had already invested in the construction of the International Convention Centre, and was on the verge of introducing a game reserve in the Lubombo Region, hence all these projects aligned with the need to have a commercial airspace.<\/p>\n

MP Mduduzi Matsebula, one of the committee members, wanted to know the amount allocated to RENAC as subvention as it seemed the public enterprise had used a lot of money to purchase the two aircrafts. He also wanted the committee to be provided with answers on whether RENAC does submit audited financial statements.<\/p>\n

A report by the Eswatini Economic Policy Analysis and Research Centre (ESEPARC) released in November last year, showed that RENAC was allocated a E356 million subvention while for the 2022\/2023 financial year, the Government Book of Estimates reflected a far lesser amount of E172.56 million for the \u2018Royal Swazi Airline\u2019.<\/p>\n

Business Eswatini (BE) is on record saying the planned national airline was well-known to the country\u2019s employer organisation, after RENAC took the private sector into their confidence.<\/p>\n

BE Chief Executive Officer E. Nathi Dlamini said they, however, before the whole strategic plan was presented to the organisation\u2019s management team, they had their own reservations which bordered on scepticism in large part, because earlier attempts of having a viable commercial national airline had been met with failure.<\/p>\n

As such, he said, they were curious as to what would be done differently this time around which could make the venture successful. Dlamini said RENAC management came over to BE and made a comprehensive presentation including laying out the critical success factors to be achieved in order to make the airline a viable one.<\/p>\n

He said they went further to describe in detail the role to be played by the travelling private sector community seeing as they did, that most of the travelling between the proposed destination would be primarily business.<\/p>\n

Dlamini said the proposed Harare, Durban and Cape Town routes would cut out the current and time-wasting stopover in Johannesburg.<\/p>\n

It is worth noting that Minister Rijkenberg also allocated E173 million to the Eswatini Airlink for the current financial year.<\/p>\n

For More News And Analysis About Eswatini<\/a> Follow Africa-Press<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Africa-Press – Eswatini. It has already cost government E21 million to facilitate the application of the much-awaited Air Operating Certificate needed for Eswatini Air to hit the skies. This amount is on top of the about E50 million that was used to purchase two airplanes that were earmarked to make their flights debut on the […]<\/p>\n","protected":false},"author":84,"featured_media":16293,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,5],"tags":[234,248,249],"class_list":["post-16294","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-economy","tag-africa-press","tag-africa-press-eswatini","tag-eswatini"],"yoast_head":"\nOVER E70M USED IN ESWATINI AIR\u2019S DELAYED DEBUT - Eswatini<\/title>\n<meta name=\"description\" content=\"It has already cost government E21 million to facilitate the application of the much-awaited Air Operating Certificat ...\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.africa-press.net\/eswatini\/all-news\/over-e70m-used-in-eswatini-airs-delayed-debut\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"OVER E70M USED IN ESWATINI AIR\u2019S DELAYED DEBUT\" \/>\n<meta property=\"og:description\" content=\"It has already cost government E21 million to facilitate the application of the much-awaited Air Operating Certificat ...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.africa-press.net\/eswatini\/all-news\/over-e70m-used-in-eswatini-airs-delayed-debut\" \/>\n<meta property=\"og:site_name\" content=\"Eswatini\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/AfricaPressTunisiaa\" \/>\n<meta property=\"article:published_time\" content=\"2022-11-15T13:33:50+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-11-15T15:24:11+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/static.africa-press.net\/eswatini\/sites\/33\/2022\/11\/postQueueImg_1668506700.60.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"850\" \/>\n\t<meta property=\"og:image:height\" content=\"567\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"cfeditoren\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"cfeditoren\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"8 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.africa-press.net\/eswatini\/all-news\/over-e70m-used-in-eswatini-airs-delayed-debut#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.africa-press.net\/eswatini\/all-news\/over-e70m-used-in-eswatini-airs-delayed-debut\"},\"author\":{\"name\":\"cfeditoren\",\"@id\":\"https:\/\/www.africa-press.net\/eswatini\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb\"},\"headline\":\"OVER E70M USED IN ESWATINI AIR\u2019S DELAYED DEBUT\",\"datePublished\":\"2022-11-15T13:33:50+00:00\",\"dateModified\":\"2022-11-15T15:24:11+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.africa-press.net\/eswatini\/all-news\/over-e70m-used-in-eswatini-airs-delayed-debut\"},\"wordCount\":1690,\"commentCount\":0,\"image\":{\"@id\":\"https:\/\/www.africa-press.net\/eswatini\/all-news\/over-e70m-used-in-eswatini-airs-delayed-debut#primaryimage\"},\"thumbnailUrl\":\"https:\/\/static.africa-press.net\/eswatini\/sites\/33\/2022\/11\/postQueueImg_1668506700.60.jpg\",\"keywords\":[\"Africa Press\",\"Africa Press-Eswatini\",\"Eswatini\"],\"articleSection\":[\"all news\",\"economy\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.africa-press.net\/eswatini\/all-news\/over-e70m-used-in-eswatini-airs-delayed-debut#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.africa-press.net\/eswatini\/all-news\/over-e70m-used-in-eswatini-airs-delayed-debut\",\"url\":\"https:\/\/www.africa-press.net\/eswatini\/all-news\/over-e70m-used-in-eswatini-airs-delayed-debut\",\"name\":\"OVER E70M USED IN ESWATINI AIR\u2019S DELAYED DEBUT - 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