Precision Air
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| Founded | 1991 | |||
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| Hubs | Julius Nyerere International Airport, Kilimanjaro International Airport & Mwanza Airport |
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| Focus cities | Dar es Salaam | |||
| Frequent-flyer program | PAA Royal | |||
| Fleet size | 11 | |||
| Destinations | 14 | |||
| Company slogan | You Are Why We Fly | |||
| Parent company | Public:DSE | |||
| Headquarters | Dar es Salaam, Tanzania | |||
| Key people | Michael Ngaleku Shirima Chairman Alfonse Kioko Managing Director & Chief Executive Officer |
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| Website | Homepage | |||
Precision Air Services Limited, operating as Precision Air, is the largest airline in Tanzania, based in Dar Es Salaam.[1]
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[edit] Overview
The airline operates scheduled air services for tourists and business traffic between Dar Es Salaam and Fourteen (14) other airports in Tanzania. It also maintains scheduled service to Kenya and Uganda, within the East African region and Internationally to Comoros and South Africa. Its main base is Julius Nyerere International Airport, Dar es Salaam with hubs at Kilimanjaro International Airport and Mwanza Airport.[2]
[edit] History
Precision Air was established in 1991 and started operations in 1994. It began as a crop sprayer, but expanded to serve the growing tourist market. Scheduled services started in November 1999. In 2006 Precision became the first Tanzanian airline to pass IATA Operational Safety Audit, and as of May 2011, is the only airline in the country to pass that audit. Precision Air moved 465,349 passengers in the 2007/08 financial year, which increased to 538,305 in 2008/09.
[edit] Ownership
Prior to 2003, Precision Air was privately owned. That year, Kenya Airways acquired a 49% stake in the airline, after paying US$2 million, weeks after its rival, South African Airways acquired a 49% stake in Air Tanzania. The remaining 51% was retained by Michael Ngaleku Shirima, the founder of the airline.[2][3]
In October 2011, Precision Air floated 30.35% shareholding in the airline stock, in an IPO on the Dar es Salaam Stock Exchange (DSE). The anticipated shareholding structure after the offer for subscription will be 58,841,750 shares (30.35 per cent) for the investing public on the DSE, 66,157,350 shares (34.13 per cent) for Kenya Airways Limited and 68,857,650 shares (about 35.52 per cent) to be owned by Michael Shirima, the founder, Chairman of the company and largest shareholder. The estimated US$16.7 million (Tanania shillings-TZS:27.9 billion), will be spent mainly on new aircraft acquision and a small amount on operational expenses.[4]
In November 2011, International press reports indicated that the IPO was only 42.3% subscribed.[5] Since Kenya Airways did not float any of its shares in the IPO, the shareholding in the airline, when it starts to trade on the DSE on 15 December 2011, will be as depicted in the table below:
