Africa-Press – Tanzania. MINISTER for Transport, Prof Makame Mbarawa, has instructed the management of Air Tanzania Company Limited (ATCL) to implement measures that focus on reducing operational costs and improving efficiency, with the goal of delivering competitive, safe, reliable and internationally benchmarked services.
Speaking during the opening of the third ATCL Workers’ Council Meeting in Dar es Salaam yesterday, Prof Mbarawa acknowledged the progress made in expanding routes, improving service quality and strengthening operations locally and abroad. However, he asserted that several areas still require urgent improvement.
He said that ATCL continues to face significant operational cost burdens, particularly from aviation fuel, maintenance, insurance and airport charges, expenses that consume a large share of the company’s revenue.
“Operational costs remain our biggest challenge. Fuel, maintenance, insurance and airport fees still take up a considerable portion of the budget, these costs reduce our ability to grow profits and make long-term business decisions. Management and all employees have a key responsibility to minimise these expenses,” he said.
Prof Mbarawa said there is need for ATCL to adopt global best practices, which include digital self-service systems that allow passengers to book tickets and check in online, reducing pressure on physical service points and improving efficiency.
He also identified labor efficiency, modern tools and skills-building as critical areas that need investment. Prof Mbarawa explained that the measures would increase productivity and reduce turnaround times.
Prof Mbarawa encouraged ATCL to adopt datadriven and predictive maintenance to cut maintenance costs and improve planning.
“If data shows an Airbus needs certain maintenance every six months, then planning becomes easier. You track the parameters, usage trends and anticipate when components will need replacement,” he said.
The Minister also stressed the importance of improving load factors through strategic pricing models such as dynamic pricing.
“During peak seasons like Christmas or public holidays, you must know how to adjust fares. These are international standards that need consistent implementation,” he added.
He further noted that ATCL incurs high airport charges and must work to reduce aircraft ground time, since long ground delays generate losses.
He also pointed to intense competition from major carriers like Ethiopian Airlines and Qatar Airways, urging ATCL to strengthen customer attraction strategies and improve service quality to remain competitive in regional and global markets.
On cargo operations, Prof Mbarawa expressed concern over the underutilisation of ATCL’s cargo aircraft, warning that overdependence on passenger revenue limits growth. “I don’t understand why our cargo aircraft is not fully utilised. The global cargo market is large and lucrative. We must expand our cargo services,” he said.
He urged ATCL to improve its performance by reducing flight delays, addressing technical issues promptly and enhancing backup capacity during emergencies.
“Tanzanians love their national airline, but complaints about delays are many. Even major airlines experience delays, but they communicate clearly. We must be proactive, provide timely and transparent updates and build lasting customer trust,” he said.
He also underscored the need to strengthen digital systems for ticketing, data management, market analysis and revenue planning, emphasising that this requires substantial investment in modern technology.
On route expansion, Mbarawa cautioned against opening international routes without proper market analysis
