BBC NEWS Americas Africa Europe Middle East South Asia Asia Pacific
BBCi NEWS   SPORT   WEATHER   WORLD SERVICE   A-Z INDEX     

BBC News World Edition
 You are in: Business  
News Front Page
Africa
Americas
Asia-Pacific
Europe
Middle East
South Asia
UK
Business
E-Commerce
Economy
Market Data
Entertainment
Science/Nature
Technology
Health
-------------
Talking Point
-------------
Country Profiles
In Depth
-------------
Programmes
-------------
BBC Sport
BBC Weather
SERVICES
-------------
EDITIONS
Monday, 7 October, 2002, 12:37 GMT 13:37 UK
Air Tanzania attracts $20m bid
Air Tanzania plane and staff
The government is privatising 75% of its airline
South African Airways has offered to pay $20m (12.8m) for a 49% stake in Air Tanzania.

If the bid is accepted, it will be the South African airline's first acquisition outside its home market.

"SAA intends to establish and develop a strong East African hub based on a Tanzanian branded and network carrier," said a spokesman for the group.

SAA emerged as the only bidder after Kenya Airways said it would rather concentrate its efforts on establishing a regional East African airline.

Tanzania, one of the world's poorest countries, is privatising up to 75% of its airline in order to meet obligations to the World Bank and International Monetary Fund.

Small-scale operation

Established in 1977, Air Tanzania owns one plane and leases two others.

Based in Dar-es-Salaam, it serves the East African cities of Nairobi, Entebbe and Kigali, and sporadically flies to a handful of Central and Southern African capitals.

SAA is Africa's biggest carrier and is in the process of acquiring 41 Airbus planes.

It has recently introduced new routes to Ethiopia and Senegal.

There is no immediate indication of how it plans to finance the purchase if its offer is accepted.

See also:

20 Sep 02 | Business
05 Aug 02 | Business
31 May 02 | Business
Internet links:


The BBC is not responsible for the content of external internet sites

Links to more Business stories are at the foot of the page.


E-mail this story to a friend

Links to more Business stories

© BBC ^^ Back to top

News Front Page | Africa | Americas | Asia-Pacific | Europe | Middle East |
South Asia | UK | Business | Entertainment | Science/Nature |
Technology | Health | Talking Point | Country Profiles | In Depth |
Programmes