Gunter Endres/LONDON
THE CHAIRMAN OF EAST African carrier Alliance has proposed a merger with Air Tanzania and Uganda Airlines - both 10% stakeholders in the multi-national long-haul carrier.
The merger call by Ugandan parliamentarian and Alliance chairman, Adrian Sibo is seen as an attempt at a pre-emptive strike, to avoid the risk of being side lined when the two airlines are privatised.
With reports from both airlines suggesting a profitable 1995, the respective Governments are keen to accelerate the privatisation process, which could take place late this year, says Fanie Brand, Alliance's senior manager, marketing.
Brand says that the timescale precludes plans to merge before privatisation, but Alliance would work with the two Governments, within the programme parameters, towards a union soon after.
Alliance, owned 40% by South African Airways (SAA), has declared an interest in purchasing all or part of the two carriers, but with its own resources limited, this burden would undoubtedly fall on SAA parent company Transnet, the state owned transportation group, which would give SAA virtually total control over any new airline grouping.
Brand is convinced that a merger makes economic sense, allowing wide-ranging rationalisation of operations in an era where small carriers are finding it increasingly difficult to survive.
Zambia, once a member of the African Joint Air Services agreement, which provided the framework for the establishment of Alliance in 1994, has indicated its interest in rejoining, and is studying a proposal from Alliance, to start a Lusaka-Kigali-London service.
Rwanda and Angola have also expressed a wish to participate, but newly privatised Kenya Airways is unlikely to consider an invitation from Sibo, having rejected an SAA bid in 1995 in favour of a partnership with Dutch airline KLM.
If any form of merger goes ahead, the role of a mini-hub for the new airline will fall on Entebbe, although Brand accepts that much work will need to be done to match, or usurp, the pre-eminence of Nairobi in the region.
He says, however, that the Alliance concept is a long-term vision, adding that Uganda has the highest economic growth rate in Africa and, together with Tanzania, is potentially a better tourist market than Kenya.
In its present form, Alliance operates a single route from Dar-es-Salaam to London, via Entebbe, and has authority to fly to Dubai and Bombay. As this, is already served by Air Tanzania, discussions to avoid unnecessary competition are progressing. Uganda and South Africa are also re-negotiating the bilateral to permit Alliance to offer services between Entebbe and Johannesburg
Source: Flight International
