Precision Air to use funds from IPO for route and fleet expansion

Precision Air to use funds from IPO for route and fleet expansion

Precision Air plans to use the money raised from its IPO to finance the carrier’s route and fleet expansion plans.  The carrier hopes to raise TZS28 billion (USD17.1 million) from the rights offering. 
Precision Air, the largest carrier in Tanzania, has 11 aircraft in service.

The the money raised from the IPO would largely be used to finance the airline's fleet and route expansion plans.

"Much of it will go to expansion by acquiring more aircraft and acquisition of spares, which are critical for the operation of the airline," Alfonse Kioko said, adding that he expected the IPO to be oversubscribed, Reuters reports.

The airline currently operates flights to Kenya, South Africa and Comoros together with its domestic routes. The airline plans to expand to Southern Africa, West Africa before moving towards Middle East and Asia. Quite an ambitious expansion plan for tanzania's privately owned airline that was founded by Tanzanian entrepreneur, Michael Shirima who owned 51% of Precision Air before the IPO.

Precision Air IPO will be Open to Kenyan Investors

Precision Air IPO will be Open to Kenyan Investors

Kenyan Investors will be allowed to buy shares in the Precision Air IPO, after all, in spite of earlier statement by Kenya Airways CEO Dr Titus Naikini, reports Business Daily Africa

Precision Air will sell 65% of its 55 million unauthorized shares. The airline is owned by Tanzianian businessman Michael Shirima(51%) and Kenya Airways(40%)

Precision Air to take delivery of B737-300

Precision Air to take delivery of B737-300

Tanzania’s premier airline, and following the demise of Air Tanzania THE flag carrier of the country, is due to take delivery of a leased B737-300 aircraft in less than two weeks time, according to a regular aviation source in Dar es Salaam. The aircraft, offering a dual class configuration, will have 116 seats and boost the fleet of the airline, allowing more flights to more destinations.


I loved this little piece of creativity on Precision Air Website; you can actually explore the interior using the four arrow keys.

The Comoros will be the next international destination it was learned, with the inaugural flight being operated on 17th of August, with initially three flights a week. Plans to resume flights to Johannesburg are also in the final stages of preparation, as more aircraft will join the fleet in coming months. Meanwhile will the lakeside municipality of Mwanza see the daily number of flights to Dar es Salaam rise to five from the present three, either nonstop or via Kilimanjaro / Arusha.

The same source also confirmed that Precision Air will base one of their ATR aircraft in Mwanza to serve other lakeside towns like Bukoba but also Kigoma and Musoma.

Watch this space for the latest breaking news from the Eastern African and Indian Ocean aviation scenes.

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