Precision Air Explained

Airline:	Precision Air
Iata:	PW
Icao:	PRF
Callsign:	PRECISION AIR^[1]
Founded:	1991
Commenced:	November 1993
Aoc:	TCAA/AOC/003
Hubs:	Dar es Salaam
Secondary Hubs:	Kilimanjaro^[2]
Frequent Flyer:	PAA Royal
Fleet Size:	8
Destinations:	13
Headquarters:	Dar es Salaam, Tanzania
Key People:	Allan Kilavuka (Chairperson) Patrick Mwanri (CEO)
Revenue:	TSh 117,756 million (US$50 million) (FY 2022)^[3]
Profit:	TSh −30,139 million (US$−12.8 million) (FY 2022)
Num Employees:	393 (2022)

Precision Air Services Plc (operating as Precision Air; DSE:PAL) is a Tanzanian airline based at Julius Nyerere International Airport in Dar es Salaam.^[4] The airline operates scheduled passenger services to Nairobi and Comoros; and to various airports and airstrips in Tanzania.^[5] Kenya Airways owns 41.23% of the airline.

History

Precision Air was incorporated in Tanzania in January 1991 as a private airline and started operations in 1993. At first, it operated as a private charter air transport company but in November 1993 changed to offer scheduled services to serve the growing tourist market.^[6]

In 2006, Precision Air became the first Tanzanian airline to pass the IATA Operational Safety Audit.^[7]

In April 2011, the airline became a public company.

Corporate affairs

Ownership

Precision Air was privately owned until 2003, when Kenya Airways acquired a 49 percent stake, paying US$2 million, weeks after its rival South African Airways acquired a 49 percent stake in Air Tanzania for US$20 million. The remaining 51 percent was retained by Michael Shirima, the founder of the airline.^{[8] [9]}

In October 2011, Precision Air floated shares in its stock in an initial public offering on the Dar es Salaam Stock Exchange, after which Shirima's and Kenya Airways's stakes declined and the new share subscribers owned 15.86 percent.^[10] As of 31 March 2016, the major shareholders were:^[11]

Name	No. of Shares	Interest
Michael Shirima	align=right	68,857,650	align=right	42.91%
Kenya Airways	align=right	66,157,350	align=right	41.23%
	align=right	1,765,300	align=right	1.10%
Other shareholders	align=right	23,689,500	align=right	14.76%
Total	160,469,800	100.00%

Business trends

Because it was a private company until 2011, published figures were not generally available before the initial public offering prospectus^[12] of 12 September 2011. Since then, full Annual Reports and Accounts have been published. (however, those for 2019 and 2020 are still awaited.)

Available trends over recent years for the Precision Air group (Precision Air Services Plc and its subsidiaries Precision Handling Limited and Precise Systems Limited) (as at year ending 31 March) are:

Turnover (TSh million)	57,988	84,344	92,493	113,606	163,061	181,358	141,262	105,400	90,751	79,756	97,108
Profits (PBT) (TSh million)	5,671	2,818	1,924	2,159	1,841
Number of employees	align=center		align=center		576	657	704	717	608	536	509	436	356	405
Number of passengers ('000)	465	538	align=center		667	825	896	688	452	375	409	474	481
Passenger load factor (%)	align=center		align=center		align=center		64	58	62	65	59	52	52	55	52
Number of aircraft (at year end)	align=center		align=center		10	10	11	12	10	10	10	10	10	7
Notes/sources				^[13]	^[14]	^[15]	^[16]	^[17]		^[18]		^[19] ^[20]

Published reports in June 2013 indicated that Precision Air had encountered substantial financial difficulties, stemming in part from losses incurred while operating flights to and from Johannesburg, South Africa.^[21] Those flights ended in September 2012.^[22] The Citizen, a Tanzanian newspaper, reported in August 2013 that the airline "desperately" needed a US$32 million bailout package from the Tanzanian government or other non-shareholder sources.^[23] The airline's problems increased in 2011 when it received only US$7.4 million of the US$17.5 million in cash that the airline hoped to receive when first listed on the Dar es Salaam Stock Exchange.^{[23] [24]} Increasing fuel prices, taxes, and levies plus currency fluctuations and the refusal of minority owner Kenya Airways to contribute capital had also hurt the airline.^[23]

Destinations

As of, the airline serves the following destinations:

Country	City	Airport	Notes	Refs
				^[25]
				^[26]
	Mombasa	Moi International Airport
				^[27]

Partnerships

Codeshare agreements

Precision Air has codeshare agreements with the following four airlines:

1. Etihad Airways (Abu Dhabi-Dar es Salaam)^[28]
2. Kenya Airways (various routes)^[29]
3. LAM Mozambique Airlines (Maputo–Nampula–Pemba–Dar es Salaam)^[30]
4. RwandAir (Kigali–Kilimanjaro)^[31]

Interline agreements

In 2011, Precision Air entered into an interline agreement with Qatar Airways, allowing the latter's passengers to connect to other east African destinations such as Arusha and Zanzibar via Dar es Salaam and Kilimanjaro International Airport.^[32] This agreement includes e-ticketing.

As of 23 December 2014, Precision Air also had 21 interline agreements for baggage and paper ticketing purposes with the following airlines:

1. Air Seychelles (also e-ticketing)
   1. Alitalia British Airways (also e-ticketing)
   2. Egyptair Emirates
2. Ethiopian Airlines (also e-ticketing)
3. Etihad Airways
   1. Gulf Air Hahn Air (also e-ticketing)
   2. Heli Air Monaco Kenya Airways (also e-ticketing)
4. KLM (also e-ticketing)
5. LAM Mozambique Airlines (also e-ticketing)
6. Oman Air
7. RwandAir
8. Saudia
9. SN Brussels Airlines
10. South African Airways (also e-ticketing)
11. Swiss International Air Lines
12. TAAG Angola Airlines (also e-ticketing)
13. Virgin Atlantic (also e-ticketing)^[33]

Fleet

Current fleet

As of November 2022, the Precision Air fleet included the following aircraft:^{[34] [35]}

Precision Air fleet

Aircraft	In Service	Orders	Passengers			Notes
			C	Y	Total
ATR 42–500	2	—	0	48	48
ATR 42–600	1	—	0	48	48
ATR 72–500	5	—	0	70	70
Total	8	0

Historical fleet

The airline has previously operated the following aircraft:

1. ATR 42-320^[11]
2. Boeing 737–300^[34]
3. Bombardier Dash 8

Accidents and incidents

According to the Aviation Safety Network Precision Air has had seven accidents or incidents.^[36] One of those caused 19 fatalities.^[37]

• 26 July 1999: A Let L-410UVP-E9, tail number 5H-PAB, made a belly landing at Arusha Airport on a training flight while doing a touch and go landing. The two crew and three passengers were not injured.
• 16 November 2004: A Let L-410UVP-E20, tail number 5H-PAC, crash landed while on a training flight at Kilimanjaro Airport. The two pilots, who had not put on their shoulder straps, sustained facial injuries.
• 8 July 2007: An ATR 72–212, tail number 5H-PAR, had a runway excursion on landing at Nairobi's Jomo Kenyatta International Airport runway 06. It veered to the right, went over a ditch, and came to a stop on Taxiway F. The nose wheel collapsed. The four crew and 62 passengers were not injured. The aircraft was substantially damaged. The probable cause of this accident was power asymmetry during application of reverse thrust on landing. The control levers were jammed in one position.
• On 13 December 2013, an ATR 42–600 (5H–PWI) made a safe landing at Arusha Airport after its four tires deflated upon landing. All 37 passengers and 4 crew were safe. The airline subsequently explained that higher braking forces, necessitated by the aircraft landing with a tailwind, caused the deflations.^[38]
• 10 July 2014: An ATR 72–500, tail number 5H-PWA, was halfway to Dar es Salaam from Mwanza during normal cruise when the number 2 engine seized. This necessitated a diversion to Kilimanjaro International Airport. The aircraft touched down normally; however, after selecting ground idle (as per the captain's explanation), the aircraft veered to the left and exited the runway hitting one of the runway edge lights and proceeded to roll on the grass field parallel to runway 09 for approximately 180 meters before subsequently regaining the runway. No injuries were reported.
• 9 December 2018 Flight PW 722 with 68 passengers from Nairobi to Mwanza via Kilimanjaro had multiple birdstrikes on approach, including on the wheels that caused difficulties on landing.^[39]
• 6 November 2022: Precision Air Flight 494, an ATR 42-500 (5H-PWF) with 39 passengers and 4 crew crashed in Lake Victoria while landing at Bukoba Airport, Tanzania. There were 19 deaths. It was the first fatal accident in the airline's history. ^[40]

Notes and References

1. Web site: JO 7340.2J – Contractions – Basic with Change 1, Change 2 & Change 3. Federal Aviation Administration. 6 August 2020.
2. News: 3 May 2019 . Tanzania's PrecisionAir creates a mini-hub at Kilimanjaro . ch-aviation . 24 March 2024.
3. News: 2022 . Precision Air Highlights of the Year . Dar es Salaam Stock Exchange . 24 March 2024.
4. Web site: Precision Air enhances its operations from Mwanza . 1 February 2013 . 1 February 2013.
5. Web site: PrecisionAir – Home. www.precisionairtz.com.
6. Web site: Precision Air History . Precision Air . 11 June 2013.
7. Web site: Precision Air – Apg . 11 June 2013 . https://web.archive.org/web/20130719061901/http://www.apg-usa.us/precision-air/ . 19 July 2013 . dead .
8. News: Directory: World Airlines . . 65 . 10 April 2007.
9. News: Kenya Airways to buy 49% stake in Precision Air . AirlineCrew.net . 4 September 2017 . en.
10. News: Precision Air gets Sh510 million IFC boost . Business Daily . 4 September 2017 . en-UK.
11. Web site: Precision Air Services P.L.C. Annual Report and Financial Statements 2015/2016 . 18 August 2016 . 6 June 2017.
12. Web site: Prospectus . 12 September 2011 . 28 September 2014 . https://web.archive.org/web/20130122122828/http://precisionairtz.com/assets/files/Investor%20Relations/PRECISION%20AIR%20PROSPECTUS%2014%20September%202011.pdf . 22 January 2013 . dead .
13. Web site: Directors Report and Financial Statements 31 March 2013 . 31 August 2013 . 3 January 2014 . https://web.archive.org/web/20140103181457/https://www.precisionairtz.com/files/Investor%20Relations/PAir%20Directors%20Report%202013%20grey%20fnlmail.pdf . 3 January 2014 . dead .
14. http://www.financialjunction.info/index.php/en/component/k2/item/69-super-brand-precision-air-pw-pleased-with-2012-2013-performance "Super Brand Precision Air (PW) pleased with 2012/2013 performance", The Financial Junction, 17 April 2013
15. Web site: Directors' Report and Financial Statements 31 March 2013 . Precision Air . 22 November 2013 . https://web.archive.org/web/20140103181457/https://www.precisionairtz.com/files/Investor%20Relations/PAir%20Directors%20Report%202013%20grey%20fnlmail.pdf . 3 January 2014 . dead .
16. Web site: Directors' Report and Financial Statements 31 March 2014 . Precision Air . 21 July 2014.
17. Web site: Despite bad financial performance Precision Air shares remain flat . Daily News . 21 October 2015.
18. Web site: Annual Report and Financial Statements for the year ended 31 March 2018 . Precision Air . 21 November 2019.
19. Web site: AFRAA Annual Report 2020. AFRAA. 20 April 2021.
20. Web site: Tanzania's Precision Air flies in detrimental business losses. sautikubwa.org . 8 January 2021 . 22 December 2021.
21. News: Precision Air's financial troubles go into public domain . Thome . Wolfgang H. Thome . 11 June 2013 . eTurboNews . 4 September 2017 . en-US.
22. Web site: Airlineroute :: Routesonline . 2017 . UBM (UK) Ltd. . airlineroute.net . en-GB . 4 September 2017 . https://web.archive.org/web/20160304093742/http://airlineroute.net/2012/08/27/pw-jnb-sep12cxld/ . 4 March 2016 . dead .
23. News: Precision Air's Sh51bn bailout appeal to State . 4 September 2017 . en.
24. News: Precision Air looks to other lenders after poor IPO show . The East African . 4 September 2017 . en-UK.
25. News: Destinations . Precision Air . 24 March 2024.
26. News: 8 July 2023 . Precision Air discontinues FBM-LUN route . 24 March 2024.
27. News: 10 October 2016 . How regional airlines are scrambling for Entebbe airport . Monitor . 25 March 2024 . Precision Air operated a direct flight.. until March 2014..
28. Web site: Etihad / Precision Air plans codeshare service from Jan 2017 . Jim Liu . . 27 December 2016 . 10 December 2017.
29. Web site: Partners & Alliances . . 31 January 2013.
30. Web site: Precision Air enters into code share with Mozambique Airlines . 6 March 2012 . Precision Air . 31 January 2013.
31. Web site: Partners and Alliances. . . 31 January 2013.
32. Web site: Qatar Airways and Precision Air announce partnership . 1 November 2011 . Pressrelease . . 31 January 2013.
33. http://www.expertflyer.com/air/travelInformation.do Travel Information, Expert Flyer, accessed 23 December 2014, subscription service
34. Web site: Tanzania's Precision Air goes all prop after last 737 is withdrawn. ch-aviation.
35. Web site: Precision Air – Our fleet . 17 September 2020.
36. Web site: Accident record for Precision Air . . 8 April 2012.
37. Web site: ASN Aircraft accident ATR 42–500 5H-PWF Bukoba Airport (BKZ). Harro. Ranter. aviation-safety.net.
38. Web site: "Update: Precision ATR 42–600 Blew All Main Tires on Landing at Arusha on Dec 13 Resumed to Service", The Aviation Herald, 17 December 2013 . 21 September 2017 . https://web.archive.org/web/20160304044148/http://www.aviatorstation.com/2013/12/17/incidents-accidents/update-precision-atr-42-600-blew-all-main-tires-on-landing-at-arusha-on-dec-13-resumed-to-service . 4 March 2016 . dead .
39. Web site: Precision wafafanua ndege yao kuvamiwa na kunguru angani – Dar24.
40. Web site: ASN Aircraft accident ATR 42–500 5H-PWF Bukoba Airport (BKZ). Harro. Ranter. aviation-safety.net.