Skip to main content

Precision Air financial results 2012/2013.

PRESS RELEASE

Dar Es Salaam, August 30th, 2013

The Board of Directors of Precision Air Services Plc is pleased to announce its full year results for the year ended March 31st 2013.

The company made a net loss of Tshs.30.4billion against prior year which stood at Tshs.1.2billion profit.

Overall the Available Seat Kilometers grew by 10% whereas the Revenue Seat Kilometers grew by 16%. Total numbers of passengers uplifted over the period went up by 8.5% to 895,650 against 825,150 prior year. The yield however declined by 9.4%.

Total Revenues grew by 8.2% to Tshs.176.4billion largely driven by increased passenger numbers. This robust growth in passengers was attained even with increased competition in the domestic market. 

Direct Expenditures went up by 24% to Tshs 145billion due to increased cost of fuel and increased equipment related costs. Aircraft Maintenance costs increased from Tshs.11.9billion in 2011 to Tshs.23.6billion in 2012; this was mainly due to the high costs of maintaining the Boeing 737 Fleet.

The gross profit margin therefore declined from 28percent in the prior year to 18% (Tshs.31billion against Tshs.46billion prior year).

The Indirect Expenditure grew by 18.6% to Tshs.42billion, driven mainly by staff related costs that went up by 8% to Tshs.28.5billion against Tshs.26.4billion.

Financing Costs grew by 8% due to overdrafts whereas the company accrued a loss in foreign currency exchange of Tshs.4.4billion which is a 50% growth over prior year. This is largely related to US dollar denominated borrowings for aircraft financing.

Loss on impairment of receivables grew to Tshs.8.6billion from Tsh.0.3billion, due to addition provisions made in relation to other carriers billing rejections that were unprocessed by year end. 

The net effect was a loss of Tshs.30.4billion against a profit of Tshs.1.2billion prior year.

Considering the performance, the group recognized the need to execute a turnaround. Towards that end, the Board has made changes in Top Management which has developed a new 5year Strategic Plan already approved by the Board. 

The plan is focusing on the following:
  1. Network Rationalization (pruning of non-profitable routes)
  2. Fleet Rationalization (Termination of expensive fleet such as Boeing 737 aircraft leases).
  3. Operations & Structure:- includes Staff Retrenchment and Internal Efficiencies.
  4. Revenue Enhancement Opportunities;- includes Third Party Maintenance, and Third Party Advertising.
So far, the actions taken have yielded positive results.

Michael Shirima                                            Sauda Rajab
Chairman                                                     Group Managing Director & CEO

Comments

Most Viewed Posts

Job Opportunities at Air Tanzania (ATCL)

VACANCIES ANNOUNCEMENT Air Tanzania Company Limited (ATCL) is in the process of revamping its operations and has introduced new equipment to its fleet. The Company is therefore inviting applications from qualified personnel to fill various positions.
1.      POSITIONS: 
1.1. Dash 8 – Q400 Mechanical and Avionics Certifying Engineers (6 POSTS) 
   a)    Qualifications·         ·Must possess a valid Aircraft Maintenance Engineers License (ICAO TYPE II).  ·        ·Must possess a valid Dash 8 – Q400 Approval/License.·Must have successfully completed Dash 8 – Q400 type course from an Approved Training Organisation.       ·Must have Aircraft Maintenance working experience, as a certifying engineer, of not less than 5 years; 2 of which being on Dash 8 – Q400. Experience must include release to service certification after “A” Check and above.       ·Computer literacy·        ·Fluency in English·        ·Possession of Dash 8-Q300 Approval/License will be an added advantage.

   b)    Duties and res…

Job Opportunities at Air Tanzania: Pilots-in-Command, Co-Pilots,Aircraft Maintenance Engineers and Cabin Crews.

Air Tanzania Company Limited (ATCL) is in the process of revamping its operations and has introduced new equipment to its fleet. The Company is therefore inviting application from qualified personnel to fill various positions.
1. POSITIONS: 1.1 Pilot-in-Command – Dash 8 (11 Posts) a) Qualifications: Must possess Airline Transport Pilot License (ATPL) and with performance “A”.Must additionally achieve the following:- ·Minimum of 4000 hours flying experience of which 2000 hours must be command on multi-engine aircraft; Above 17 ton. ·Group 1 endorsement on DASH 8 or Equivalent with a minimum of 500 hours command on type; ·Pass an oral interview and flying acceptance check conducted by the Company; ·Must pass a Base and Route check with an Instrument Rating within 10 and 70 hours respectively; ·Track record of good performance as a Commander and no accident record.
b) Duties and responsibilities: ·To command the aircraft with due regard for safety and comfort of passengers at all times. ·To maintain…

Job Vacancy At Precision Air - Cabin Crews (10-Posts)

JOB VACANCY Precision Air Services Plc is a fast growing private Tanzanian airline which operates in Partnership with Kenya Airways, with its strategies to expand wings beyond East Africa and Africa.
In order to keep our services at a higher level and meet our customers’ maximum satisfaction We wish to invite applications from suitably qualified candidates to fill in this challenging position.
POSITION:          CABIN CREWS(10-POSTS) REPORTS TO:     CHIEF CABIN CREW DUTY STATION: DAR ES SALAAM ROLE PURPOSE OF THE STATEMENT
You will be reporting to Chief Cabin Crew/Assistants Chief Cabin Crew - P