Wikipedia

Air Botswana

Air Botswana CorporationisBotswana's state-owned nationalflag carrier,with its headquarters located inGaborone.[4]It operates scheduled domestic and regional flights from its main base atSir Seretse Khama International Airport.[5]Air Botswana has been loss-making for several years, and there have been various attempts to privatise the company, and frequent changes to the corporation's management and board, so far without reducing the losses.[6]

Air Botswana
IATA ICAO Call sign
BP BOT BOTSWANA
FoundedJuly 2, 1972;52 years ago(1972-07-02)
Commenced operationsAugust 1, 1972;52 years ago(1972-08-01)
HubsSir Seretse Khama International Airport
Frequent-flyer programTeemane Club
SubsidiariesNone
Fleet size7[1][2]
Destinations8[3]
Parent companyGovernment of Botswana
HeadquartersSir Seretse Khama International Airport,
Gaborone,Botswana
Key peopleLulu Rasebotsa[1][2]
CEOandgeneral manager
Websiteairbotswana.co.bw

History

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Formative years (1972–1986)

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Air Botswana (Pty.) Limitedwas founded on 2 July 1972 to succeed two failed formernational airlines:Botswana National Airways(1966–1969) andBotswana Airways Corporation(1970–1971).[7]Air Botswana Holdings was responsible for the ownership and leasing of aircraft, and served as theholding companyfor Air Botswana. During the early years, Air Botswana (Pty.) Limited acted as a contractor for numerous flight services, which were contracted to South African Protea Airways, via a local subsidiary, Air Services Botswana.[8][9]

Flight operations began on 1 August 1972 utilising the only aircraft of the company: aFokker F-27 Friendship.Throughout the 1970s, Air Botswana operated a round-trip route fromGaborone-Manzini-Johannesburg-Harare-Gaborone, in addition to domestic services toFrancistown,MaunandSelebi-Phikwe.By the late 1970s, Air Botswana operated oneHS 748,oneDouglas DC-3and oneVickers Viscount 754,the latter on lease from Protea Airways.[9]

The contract with Air Services Botswana for operation of the airline was not renewed, and in 1981British Airwayswas awarded a contract for the operation of the airline for a six-year period. Also in 1981,Botswana Development Corporationwas formed as a part of Air Botswana Holdings, with the corporation being tasked to acquire an aircraft for the airline to lease. The Fokker F27 was again chosen, and because of a lack of their own trained crews, the airline seconded crews fromComairand contracted maintenance out toSafair Freighters.In 1983 aLockheed L-100-30 Herculeswas leased and Air Botswana Cargo was formed to operatecargocharters,and whenSouth African Airwaysended services to Lesotho and Swaziland, a second F27 was acquired and services toMaseruandManziniwere inaugurated. A sixteen-seatDornier 228-200was leased in December 1984 from Kalahari Air Service, with the latter flying and maintaining the aircraft for Air Botswana.[9]The 57 millionpulaSir Seretse Khama International Airportopened on 10 December 1984, seeing Air Botswana operating from the airport.[8]By the end of 1986, the route network includedGaborone,Francistown,Johannesburg,Harare,Lusaka,Manzini,Maseru,Maun,Selebi-PhikweandVictoria Falls.[9]

Government corporation

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On 1 April 1988, Air Botswana was absorbed by theBotswana governmentas aparastatal corporationunder theMinistry of Works, Transport and Communicationsas a result of theAir Botswana Act (1988),[10]and became the nation'sflag carrier.[11]Also in April 1988, Air Botswana became the first airline from theSouthern African Development Coordination Conference(SADCC) to establish air links with Namibia.[12]Air Botswana operations are regulated by theBotswana Department of Civil Aviation,under theCivil Aviation Act (1977).[11]

TwoATR 42–230arrived in 1988, leading to the sale of the Fokkers, and the firstBAe 146arrived in November 1989. The BAe 146 entered service on 12 November on theGaborone-Harareroute, operated five times per week in conjunction withAir Zimbabwe,along with other destinations of the network of the airline insouthern Africa.The airline also entered into block-seat arrangements with international airlines, including an agreement withBritish Caledonianwhich provided seats on theLusaka-Gaborone sector of the London-Lusaka-Gaborone service.[9]

In December 1992, the government enacted theControl of Smoking Act (1992),and Air Botswana became the first company in Botswana to respond to the act by banningsmokingon all domestic flights in 1993, which was extended to all flights in theSouthern African Development Communityregion in 1995.[13]Whilst the years 1988 to 1993 saw Air Botswana incurring financial losses, in 1994 the government wrote off P74 million of the airline's losses and converted them into equity.[11]

Destruction of fleet (1999)

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On 11 October 1999, the airline was crippled when one of its pilots, Chris Phatswe,crashed an empty ATR 42aircraft intoSir Seretse Khama International Airport,destroying the aircraft and two more Air Botswana ATR 42s.[14][15]Phatswe had stolen the aircraft in the early morning, and once in the air had informed theair traffic control towerthat he intended to kill himself;[16]and requested by radio to speak to several people, includingPresidentFestus Mogaeand the airline'sgeneral manager.As Mogae was out of the country, arrangements were made for Phatswe to speak toVice PresidentSeretse Ian Khama,[14]who expressed willingness to speak to Phatswe.[15]

After the aircraft circled Gaborone for two hours, Phatswe crashed it at a speed of 200 knots (370 km/h) into the airline's two other ATR 42s, which were parked on the apron, destroying all three aircraft.[14]The incident left the company with only a singleBAe 146,which had been non-operational for a year because of technical problems, forcing the airline to lease an aircraft to operate scheduled flights.[14][17]It was revealed that Phatswe had been grounded for medical reasons, was refused reinstatement, and was regrounded until February 2000.[14]

Privatisation attempts

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Because the airline had been regularly posting financial losses, which was in part is due to overstaffing, the operation of an ageing, fuel-inefficient fleet, increasing operational costs, inadequate management expertise and an inability to retain and attract qualified pilots, the government earmarked Air Botswana to be the first of the parastatals to beprivatised.The costs which the airline incurs, in conjunction with low quality of service, poor marketing, high insurance premiums and a slow uptake on new technology, has restricted growth potential for the airline.[18][19][20]However, in the five years to 2003, the government had not had to subsidise Air Botswana, and in the previous six years had made a profit.[11]

Air Botswana ATR 42–500 atOR Tambo International Airport,Johannesburg in 2005

The privatisation process began on 19 April 2000, when the government signed a consultancy agreement withWorld Bank-affiliatedInternational Finance Corporation,which saw IFC being appointed as the government's main adviser in the privatisation process.[21]

In 2003, the government attempted to privatise the airline, withAir MauritiusandComairput forward as strategic partners. The process would have seen the winning bidder receiving a 45 percent stake in Air Botswana, with the government holding a further 45 percent, and employees holding the remaining 10 percent.[22]It was planned that once the airline has firmed its position under new ownership, it would be listed on theBotswana Stock Exchange.[23]Air Mauritius withdrew from the process in September 2003, citing the downturn in global air travel markets since the11 September 2001 terrorist attacksin New York City. Comair withdrew in December 2003, due in part to increased competition bylow-cost airlinesin the South African market. The government suspended the search for a strategic partner in February 2004.[24][25]

Following a P300 million loss in the first quarter of 2006, theSunday Standardreported that the government hurriedly began efforts to privatise the airline before it became insolvent. The newspaper also revealed that the airline defaulted on its US$42,000 – 45,000 payments for the lease of the BAe 146 from April — July 2006, and that the arrears were paid once the airline's secretary and corporate counsel warned that non-compliance with the contracts could lead to the termination of the lease of the aircraft and expose the corporation to claims for damages, which would affect its image during the privatisation process.[26]In September 2006 it was announced that three potential investors had placed bids for the tender to take over the airline:Airlinkof South Africa, African World Airways Ltd, and Lobtrans (Ltd), a local truck fuel transporter. Shortlisted companies which did not submit bids includedEthiopian Airlines,Comair,Tourism Empowerment Group,ExecuJet,andInterair South Africa.[27]In November 2006, the Public Enterprises Evaluation and Privatisation Agency announced that Airlink has been put forward by theMinistry of Works and Transportas the preferred bidder for Air Botswana.[28]

It was revealed by the press that Nico Czypionka, the man responsible for leading negotiations between the government and Airlink, had convinced the government as early as April 2006 to go into partnership with the South African airline. It was alleged that the deal with Airlink was a foregone conclusion from the beginning of the process, and that other airlines had been invited to submit bids to create and illusion of fair and equitable processes. TheSunday Standardalso revealed that the blueprint for the privatisation of the airline was written by AirlinkCEORoger Foster, and was used by Botswana in its negotiations with the airline, in contravention of theBotswana Privatisation Policy of 2003.[29]

As part of the proposed deal withAirlink,it announced that Air Botswana would bewound up,and a new airline to be known asBotswana Airlinkwould be formed, with the government holding a controlling 50.1 percent share and the South African airline holding the remaining 49.9 percent.[30][31][32]The new airline would have disposed of the 46-seat ATR 42s, and would instead operate 29-seatBAe Jetstream 41s,which are more suited to low traffic domestic routes. The deal would also have seen theretrenchmentof all 300 employees of Air Botswana, with approximately 180 being rehired by the new airline.[33]

The Government ceased negotiations with Airlink in October 2007, when the Cabinet reached a decision that the deal was no longer viable. A major sticking point, according toMmegi,was that Airlink was adamant in replacing thenational coloursof blue, black and white, with those of South Africa.[34]The Cabinet also believed the proposal didn't meet requirements for air transport for the country, and didn't address government objectives for the further development of transport and tourism sectors in Botswana,[35]although the tourism industry regards Air Botswana's monopoly ofair transportin Botswana, and the resultant high fares and limited schedules, to be a major constraint for the development oftourism in Botswana.[36]

The government then began the search for a management company to operate the company for a three-year period,[37]and also announced that the government would recapitalise the airline by injecting P100 million to improve performance and to make it more attractive for privatisation.[38]The government entered into negotiations with Comair, but following disagreements over terms, negotiations continued with reserve bidder International Development Ireland, in conjunction withAer Arann.[39]

According to press reports in August 2008,Alexander Lebedev,a Russianoligarch,expressed interest in investing in the airline, and the Ministry of Works and Transport confirmed that Lebedev was invited to travel to Gaborone to present his bid to the government.[40]Part of the bid reportedly included extending Air Botswana's route network toDüsseldorf Airport;the base ofBlue Wingswhich is 48 percent owned by Lebedev'sNational Reserve Corporation.[41]At the end of 2008, it was reported that Lebedev had abandoned plans for investment in Air Botswana.[42]

Recent history

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In December 2008, Air Botswana signed a deal withATRfor two 68-seatATR 72–500regional airlinersworth US$37 million. The aircraft were delivered in March 2009, and it was announced that routes linkingKasaneandFrancistownwithJohannesburgwould be restarted. The aircraft were delivered at the time of Air Botswana facing increased competition fromSouth African Airwayswhich had re-entered the Johannesburg-Gaborone market.[43][44][45]In July 2009, Air Botswana signed acodeshare agreementwithKenya Airways,which began flights toGaboroneon 6 September with three flights per week.[46][47]

The airline left theInternational Air Transport Associationbecause of its inability to meet the December 2008 deadline of theIATA Operational Safety Audit,[48]but has since been re-admitted as a full member in 2012, under the leadership of the general manager,Sakhile Nyoni-Reiling.[49]

In December 2012, Nyoni-Reiling resigned, and press reports in May 2013 indicated internal conflicts and that two directors had been suspended for gross mismanagement pending investigations.[50]

In late 2015, Tshenolo Mabeo, the minister responsible for transport, sacked the then general manager Ben Dahwa together with his entire board of directors, following allegations of corruption. General Tebogo Carter Masire, former Botswana Defence Force (BDF) Commander, was appointed in February 2016 to lead Air Botswana as board chairman, replacing Nigel Dixon-Warren.[51]

In November 2019, theEastAfricannewspaper reported that Air Botswana was in the process of cutting its staff numbers from 450 to 210 people. The airline has been running at a loss for more than a decade, reportedly due to high maintenance costs for its planes.[52]The plans also include outsourcing ground handling services to a new company, yet to be formed. It is expected that the majority of the retrenched workers will be hired by the new ground handling outfit.[52]

In December 2023,Lulu Rasebotsawas hired to replace Agnes Khunwana who relocated toCEIBA Intercontinental.During the first six months of her tenure, Rasebotsa oversaw the expansion of the company fleet with the introduction of new aircraft and the expansion of the destinations network. The Botswana government pumped in new money to expand the enterprise.[1][2]

Corporate affairs

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Ownership

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Despite various initiatives to privatise the airline, in whole or in part, Air Botswana remains 100 percent owned by theGovernment of Botswana.

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Air Botswana has been consistently loss-making for many years. Although the airline is government owned, full annual reports do not appear to be published. Financial results (for years ending 31 March) are published by the auditor general, and other data inAFRAAreports, as below:

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Turnover (PMillion) 202.6 232.5 219.6 246.2 278.6 389.1 406.2* 417.4* 338.8*
*Includes a government grant (amount shown if known)(P Million) 63.4
Net profit (P Million) 17.5 −87.0 −45.1 −54.2 −47.1 −75.8 −100.0 −165.0 −86.1 −12.4 −42.1
Number of employees 250 567 522 385 414
Number of passengers (000s) 265 254 224 253
Passenger load factor (%) 59 62 69
Number of aircraft (at year end) 9 7 6 6 4 6
Notes/sources [53][54] [55] [56] [57][58] [57] [59][60] [61][62]
[63] 		[64][65]
[66] 		[66][67]

Destinations

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As of June 2019,Air Botswana operated scheduled passenger flights to the following destinations:[3][68]

Country City Airport Notes Refs
Botswana Francistown Phillip Gaonwe Matante International Airport [69]
Gaborone Sir Seretse Khama International Airport Hub [70]
Kasane Kasane Airport [71]
Maun Maun Airport [72]
Namibia Windhoek Windhoek–Hosea Kutako [73]
South Africa Cape Town Cape Town International Airport [74]
Durban King Shaka International Airport [75]
Johannesburg O. R. Tambo International Airport [76]
Zambia Lusaka Kenneth Kaunda International Airport [77][78]
Zimbabwe Harare Robert Gabriel Mugabe International Airport [79]

Codeshare agreement

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Air Botswana hascodeshareswith the following airlines:

Fleet

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Current fleet

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As of June 2024,the Air Botswana fleet consisted of the following aircraft:[1][2]

Air Botswana fleet
Aircraft In service Orders Passengers Notes
C Y Total
ATR 42-500 1 — — 47 47
ATR 72-600 2 — — 70 70
Embraer E170 4[1][2] 1[2] — 70 70
Total 7 1
An Air BotswanaEmbraer E170.
An Air BotswanaATR 72.
AnATR 42of Air Botswana.
Air Botswana BNB 6382, pictured in 1981

See also

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References

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