Comair and Airlink will throw their hats into the ring for a deal with national carrier, Air Botswana, which is again up for privatisation.
Last week, the Botswana Ministry of Transport and Communications called for expressions of interest (EOI) by suitable entities to make proposals for privatisation. Ownership, joint ventures, franchising, concessions and partnerships will be considered. Proposals must be made by February 28.
The airline attempted privatisation back in 2007, a process which was ultimately dropped. At the time, Comair and Airlink, among others, expressed interest.
CEO of Airlink, Rodger Foster, who at the time was engaged in extensive talks with government officials, said recent conversations had been held with people in high places in Botswana, and there did seem to be some sincerity this time round, on budget and the government’s appetite to see the privatisation process through.
Foster said Airlink had a successful model in Swaziland Airlink, which has been operational since 1999 and paid dividends to both its shareholders – the Swazi government and Airlink. “We will respond to Botswana’s request for proposal,” he said. “Although we are not sure we understand exactly what the Ministry is looking for, we will let them know that we would be delighted to help them find a solution.”
Comair CEO, Erik Venter, was quoted in press reports last week saying that his airline would seek equity in and control of Air Botswana. A management contract would also be considered on the basis that a large amount of management was conducted from Comair, to achieve economies of scale. Venter expressed doubt that Air Botswana would attract cash offers.
Air Mauritius, which also held talks with Botswana in the previous privatisation attempt, had made a decision not to proceed this time, said regional manager: Southern Africa and Latin America, Carla da Silva.
According to the EOI, Air Botswana has not been profitable in recent years but has developed a five-year business plan and has undertaken some restructuring towards increased profitability by reducing staff numbers and withdrawing from poorly performing routes. The airline recently halted services to Harare and Lusaka. During the financial year ending March 2016, losses were reduced by close on 50%. Unaudited, year-to-date results show a 44% improvement on the previous year.