Chris Yates/LONDON
Uganda Airlines and Air Tanzania have finalised plans to merge during 1998 with Alliance Airlines, the multi-national carrier led by South African Airways (SAA).
Alliance was formed in 1995, serving London Heathrow from the three countries with a single Boeing 747SP wet-leased from SAA. The South African carrier holds the largest 40% stake in the venture, with its two airline partners taking another 10%each, and their respective governments each holding 5%. The remainder is with private investors.
Uganda and Tanzania agreed in principle to merge their operations into the venture earlier this year (Flight International, 16-22 April, P19). The merger is understood to have been finalised at a meeting held in Johannesburg in early October between representatives of SAA's state-owned parent, Transnet, and the three carriers.
Although few details have so far been made public, Transnet/SAA is expected to bear the bulk of the costs of the merger, while the Tanzanian and Ugandan carriers form the nucleus of Alliance Air Express, a regional operation feeding passengers into the long-haul services via their respective hubs at Dar Es Salaam and Entebbe.
The Express network will serve most regional business centres as well as tourist destinations. At the same time, Alliance intends to enhance its international route structure to encompass new long-haul destinations. These are likely to include Dubai and Mumbai (formerly Bombay), both of which have been in prospect since Alliance started operations.
Alliance has been searching for a short-haul type, as well as for a more efficient aircraft to replace its 747SP and to support its long-haul expansion plans. Among those understood to be under evaluation are the Airbus Industrie A320 and the Boeing 767-200ER.
Source: Flight International
