PRECISION AIR Services today held its first Annual General Meeting (AGM) since being listed on the Dar es Salaam Stock Exchange (DSE) in December, 2011. The airline, which is headquartered in Dar es Salaam, posted a pretax profit of TShs 1.84 billion for the year ended 31 March, 2012, an increase of 18.3% over the previous year. Total revenues soared to Tsh163 billion from TShs 114 billion over the same period. Net profit for the year was TShs 634 million.
Precision Air is the first Tanzanian airline to be listed on the bourse. 7,056 new investors joined the Precision Air family in the December, 2011, Initial Public Offering (IPO), from which the airline raised Tshs12 billion. The airline has achieved a 233% increase in passenger numbers from 249,000 in 2004 to 825,000 in 2012, the fastest growth of any regional airline. The company has expanded by covering a record 14 destinations in Tanzania and Sub-Saharan region with the widest network in the country. The airline has one of Africa’s most modern and youngest fleets.
According to the Chairman of the Board, Michael Shirima, Precision Air is committed to delivering on shareholder value. “We will remain steadfastly focused on our vision of being the airline of choice. We welcome our new shareholders and believe that together we remain confident in our long-term objective of realizing returns to our shareholders.”
Precision Air has exhibited consistent growth in both operations and financial performance. Alfonse Kioko, Precision Air Group Managing Director and CEO, explains that while the global aviation industry has been facing strong headwinds, Precision has been one of the “best of breed” in a tough industry. “Revenue Passenger per Kilometer (RPK) was 424 million, up from 318 million seat kilometers, a growth of 33% over the previous year. We are proud that our key headline numbers have shown consistent improvement over the previous year.”
Mr Kioko added that 2012 marked another milestone for the company with the opening of its ultra-modern aircraft hangar at the Julius Nyerere Airport, adding significant operational support at Precision Air’s hub.
Precision Air continues to successfully provide self-handling at its key Tanzanian destinations. The airline uplifts an average of almost 70,000 passengers a month. The airline’s frequent flyer programme, Paa Royal, now in its second year, has generated a strong loyalty following among frequent flyers.
Precision is the country’s designated second national carrier under the International Civil Aviation Organization (ICAO) and is the only Tanzanian carrier certified under the IATA Operational Safety Audit (IOSA), the recognized airline industry standard for operational safety. Precision’s safety record is one of the best in Africa.
According to Mr Kioko, Precision is poised for further growth. “We are dynamically focused on leveraging our key technical and operational competences, particularly on developing and investing in well-trained operating crew, focusing on profitable routes, carefully managing exogenous factors, such as fuel prices and the use of more efficient technologies, to achieve even stronger results and to deliver on shareholder value,” concludes Kioko.