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Air Tanzania Plane Seized in South Africa Over Unpaid Debt

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Nyakundi Report

Newsroom 2 min read

This archive report was first published on 24 August 2019.

South African authorities have impounded an Air Tanzania plane at the OR Tambo International Airport, following a court order issued by the Gauteng High Court in Johannesburg on August 24, 2019.

The plane was due to fly from the OR Tambo International Airport on Friday, but its departure was halted due to the court order. The Tanzanian government has not released any information regarding the seizure, which could be linked to an outstanding $4.1 million debt owed to South African Airways by Air Tanzania Company Limited (ATCL). The debt accrued during a failed partnership between the two airlines between 2002 and 2006.

It is worth noting that the current airline fleet is fully managed by the Tanzania Government Flight Agency (TGFA), in an effort to avoid cases of the aircraft getting impounded due to debts owed to previous suppliers/partners by ATCL.

Another Air Tanzania plane was seized by a Canadian construction firm, Stirling Civil Engineering Ltd, in 2017 over a $38 million lawsuit, before it had been delivered. The plane was later released in March 2018.

Tanzania started the programme to revive the national carrier three years ago, which entailed buying six new planes between 2016 and 2018, settling debts, enhancing and modernising business systems, and acquiring capital. The airline's revival has since seen it commence flights to various international destinations like India, China, and South Africa.

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