Air Botswana
Encyclopedia
Air Botswana Corporation is the national airline of Botswana
, with its head office on the grounds of Sir Seretse Khama International Airport
in Gaborone
. The airline operates scheduled domestic and regional flights from its main base at Sir Seretse Khama International Airport.
(1966–1969) and Botswana Airways Corporation (1970–1971). Air Botswana Holdings was responsible for the ownership and leasing of aircraft, and served as the holding company
for Air Botswana. During the early formative years, Air Botswana (Pty.) Limited acted as a contractor for numerous flight services, which were contracted to South African Protea Airways, via a local Batswana subsidiary, Air Services Botswana.
Flight operations began on 1 August 1972 utilising the only aircraft of the company: a Fokker F-27 Friendship. Throughout the 1970s, Air Botswana operated a round-trip route from Gaborone
-Manzini-Johannesburg
-Harare
-Gaborone
, in addition to domestic services to Francistown
, Maun
and Selebi-Phikwe. By the late 1970s, Air Botswana operated one HS 748, one Douglas DC-3
and one Vickers Viscount 754
, the latter on lease from Protea Airways.
The contract with Air Services Botswana for operation of the airline was not renewed, and in 1981 British Airways
was awarded a contract for the operation of the airline for a six year period. Also in 1981, Botswana Development Corporation was formed as a part of Air Botswana Holdings, with the corporation being tasked to acquire an aircraft for the airline to lease. The Fokker F27 was again chosen, and because of a lack of their own trained crews, the airline seconded crews from Comair
and contracted maintenance out to Safair Freighters. In 1983 a Lockheed L-100-30 Hercules was leased and Air Botswana Cargo was formed to operate cargo charters, and when South African Airways
ended services to Lesotho
and Swaziland
, a second F27 was acquired and services to Maseru
and Manzini were inaugurated. A sixteen seat Dornier Do 228-200
was leased in December 1984 from Kalahari Air Service, with the latter flying and maintaining the aircraft for Air Botswana. The 57 million pula
Sir Seretse Khama International Airport
opened on 10 December 1984, seeing Air Botswana operating from the airport. By the end of 1986, the route network included Gaborone
, Francistown
, Johannesburg
, Harare
, Lusaka
, Manzini, Maseru
, Maun
, Selebi-Phikwe and Victoria Falls
.
under the Ministry of Works, Transport and Communications as a result of the Air Botswana Act (1988), and became the nation's flag carrier. Also in April 1988, Air Botswana because the first airline from the Southern African Development Coordination Conference
(SADCC) to establish air links with Namibia
. Air Botswana operations are regulated by the Department of Civil Aviation under the Civil
Aviation Act (1977).
Two ATR 42–230
arrived in 1988, leading to the sale of the Fokkers, whilst the first BAe 146
arrived in November 1989. The BAe 146 entered service on 12 November on the Gaborone
-Harare
route, operated five times per week in conjunction with Air Zimbabwe
, along with other destinations of the network of the airline in southern Africa
. The airline also entered into block-seat arrangements with a number of international airlines, which included an agreement with British Caledonian
which provided seats on the Lusaka
-Gaborone
sector of the London-Lusaka
-Gaborone
service.
In December 1992, the Batswana government enacted the Control of Smoking Act (1992), and Air Botswana became the first company in Botswana to respond to the act by banning smoking
on all domestic flights in 1993, which was later extended to all flights in the Southern African Development Community
region in 1995. Whilst the years 1988 to 1993 saw Air Botswana incurring financial losses, in 1994 the Batswana government wrote off P74 million of the airlines losses and converted them into equity.
On 11 October 1999, the airline was crippled when in a suicide mission, airline pilot Christopher Phatswe crashed an empty ATR 42 into aircraft at Sir Seretse Khama International Airport
, destroying his aircraft and two other Air Botswana ATR 42. Phatswe had taken the aircraft without authorisation in the early morning, and once in the air had informed the air traffic control tower that he intended to kill himself, and requested by radio to speak to several people, including Batswana President Festus Mogae
and the airline's general manager
. As Mogae was out of the country, arrangements were made for Phatswe to speak to Vice President Seretse Ian Khama, who expressed willingness to speak to the pilot. After circling Gaborone for two hours, Phatswe did two loops and crashed his aircraft at a speed of 200 knots (392 km/h) into the airline's two other ATR 42's, which were parked on the apron, destroying all three aircraft. The incident left the fleet with only a single BAe 146
, which had been non-operational for a year because of technical problems, forcing the airline to lease an aircraft to fulfill flight schedules. It was revealed that Phatswe had been grounded because of medical reasons, was refused reinstatement, and was regrounded until February 2000.
The process of the privatisation of Air Botswana began on 19 April 2000, when the Batswana government signed a consultancy agreement with World Bank
-affiliated International Financial Corporation, which saw IFC being appointed as the governments main adviser in the privatisation process.
In 2003, the Batswana government attempted to privatise the airline, with Air Mauritius
and Comair
put forward by the government as strategic partners for the airline. The process would have seen the winning bidder receiving a 45% stake in the airline, with the government holding a further 45%, and employees holding the remaining 10%. It was planned that once the airline has firmed its position under new ownership, that the company would be listed on the Botswana Stock Exchange
. Air Mauritius withdrew from the process in September 2003, citing the downturn in global air travel markets since the 11 September 2001 terrorist attacks in New York City. Comair withdrew in December 2003, due in part to increased competition by low-cost airlines in the South African market. The Batswana government suspended the search for a strategic partner in February 2004.
Following a P300 million loss in the first quarter of 2006, the Sunday Standard reported that the government hurriedly began efforts to privatise the airline before it became insolvent. The newspaper also revealed that the airline defaulted on its US$42,000 – 45,000 payments for the lease of the BAe 146 from April — July 2006, and that the arrears were paid once the airline's Secretary and Corporate Counsel warned that non-compliance with the contracts could lead to the termination of the lease of the aircraft and expose the corporation to claims for damages, which would affect its image during the privatisation process. In September 2006, it was announced that three potential investors had placed bids for the tender to take over the airline; Airlink
of South Africa, African World Airways Ltd, and Lobtrans (Ltd), a local Batswana truck fuel transporter. Shortlisted companies which didn't submit bids included Ethiopian Airlines
, Comair
, Tourism Empowerment Group, ExecuJet, and Interair South Africa
. In November 2006, the Public Enterprises Evaluation and Privatisation Agency announced that Airlink has been put forward by the Ministry of Works and Transport as the preferred bidder for Air Botswana.
It was revealed by the Batswana press that Nico Czypionka, the man responsible for leading negotiations between the government and Airlink, had convinced the Batswana government as early as April 2006 to go into partnership with the South African airline. It was alleged that the deal with Airlink was a foregone conclusion from the beginning of the process, and that other airlines had been invited to submit bids to create and illusion of fair and equitable processes. The Sunday Standard also revealed that the blueprint for the privatisation of the airline was written by Airlink CEO Roger Foster, and was used by Botswana in its negotiations with the airline, in contravention of the Botswana Privatisation Policy of 2003.
As part of the proposed deal with Airlink
, it announced that Air Botswana would be wound up, and a new airline to be known as Botswana Airlink would be formed, with the Batswana government holding a controlling 50.1% share and the South African airline holding the remaining 49.9%. The new airline would have disposed of the 46-seat ATR 42s, and would instead operate 29-seat BAe Jetstream 41s, which are more suited to low traffic domestic routes. The deal would also have seen the retrenchment
of all 300 employees of Air Botswana, with approximately 180 being rehired by the new airline.
The Batswana Government ceased negotiations with Airlink in October 2007, when the Batswana Cabinet reached a decision that the deal was no longer viable. A major sticking point, according to Mmegi
, was that Airlink was adamant in replacing the national colours of blue, black and white, with those of South Africa. The Cabinet also believed the proposal didn't meet requirements for air transport for the country, and didn't address government objectives for the further development of transport and tourism sectors in Botswana, although the Batswana tourism industry regards Air Botswana's monopoly of air transport in Botswana, and the resultant high fares and limited schedules, to be a major constraint for the development of tourism in Botswana
.
Following the failed deal with Airlink, the Batswana government began the search for a management company to operate the company for a three-year period, and also announced that the government would recapitalise the airline by injecting P100 million to improve performance and to make it more attractive for privatisation. The government entered into negotiations with Comair, but following disagreements over terms, negotiations continued with reserve bidder International Development Ireland, in conjunction with Aer Arann
.
According to press reports in August 2008, Alexander Lebedev
, a Russian oligarch
, expressed interest in investing in the airline, and the Ministry of Works and Transport confirmed that Lebedev was invited to travel to Gaborone to present his bid to the government. Part of the bid reportedly included extending Air Botswana's route network to Düsseldorf Airport; the base of Blue Wings
which is 48% owned by Lebedev's National Reserve Corporation. At the end of 2008, it was reported that Lebedev had abandoned plans for investment in Air Botswana.
In December 2008, Air Botswana signed a deal with ATR for two 68-seat ATR 72–500
regional airliner
s worth US$37 million. The aircraft were delivered in March 2009, and it was announced that routes linking Kasane
and Francistown
with Johannesburg
would be restarted. The aircraft were delivered at the time of Air Botswana facing increased competition from South African Airways
which had re-entered the Johannesburg-Gaborone market. In July 2009, Air Botswana signed a codeshare agreement with Kenya Airways
, which began flights to Gaborone
on 6 September with three flights per week.
The airline, which withdrew from the International Air Transport Association
because of its inability to meet the December 2008 deadline of the IATA Operational Safety Audit
, announced plans to rejoin the association in 2009.
Botswana
Botswana, officially the Republic of Botswana , is a landlocked country located in Southern Africa. The citizens are referred to as "Batswana" . Formerly the British protectorate of Bechuanaland, Botswana adopted its new name after becoming independent within the Commonwealth on 30 September 1966...
, with its head office on the grounds of Sir Seretse Khama International Airport
Sir Seretse Khama International Airport
Sir Seretse Khama International Airport located north of Gaborone is the main international airport of the capital city of Botswana. The airport is named for Sir Seretse Khama, the first president of Botswana...
in Gaborone
Gaborone
' is the capital and largest city of Botswana with a population of 191,776 based on a 2006 survey, about 10% of the total population of Botswana....
. The airline operates scheduled domestic and regional flights from its main base at Sir Seretse Khama International Airport.
Formative years
Air Botswana (Pty.) Limited was founded on 2 July 1972 to succeed two failed former national airlines: Botswana National AirwaysBotswana National Airways
Botswana National Airways was an airline based in Gaborone, Botswana.The airline took over services from Bechuanaland National Airways which ceased operations in late 1966. The airline was formed by Johnny Gibson under the leadership of D...
(1966–1969) and Botswana Airways Corporation (1970–1971). Air Botswana Holdings was responsible for the ownership and leasing of aircraft, and served as the holding company
Holding company
A holding company is a company or firm that owns other companies' outstanding stock. It usually refers to a company which does not produce goods or services itself; rather, its purpose is to own shares of other companies. Holding companies allow the reduction of risk for the owners and can allow...
for Air Botswana. During the early formative years, Air Botswana (Pty.) Limited acted as a contractor for numerous flight services, which were contracted to South African Protea Airways, via a local Batswana subsidiary, Air Services Botswana.
Flight operations began on 1 August 1972 utilising the only aircraft of the company: a Fokker F-27 Friendship. Throughout the 1970s, Air Botswana operated a round-trip route from Gaborone
Gaborone
' is the capital and largest city of Botswana with a population of 191,776 based on a 2006 survey, about 10% of the total population of Botswana....
-Manzini-Johannesburg
Johannesburg
Johannesburg also known as Jozi, Jo'burg or Egoli, is the largest city in South Africa, by population. Johannesburg is the provincial capital of Gauteng, the wealthiest province in South Africa, having the largest economy of any metropolitan region in Sub-Saharan Africa...
-Harare
Harare
Harare before 1982 known as Salisbury) is the largest city and capital of Zimbabwe. It has an estimated population of 1,600,000, with 2,800,000 in its metropolitan area . Administratively, Harare is an independent city equivalent to a province. It is Zimbabwe's largest city and its...
-Gaborone
Gaborone
' is the capital and largest city of Botswana with a population of 191,776 based on a 2006 survey, about 10% of the total population of Botswana....
, in addition to domestic services to Francistown
Francistown
Francistown or Nyangabgwe is the second largest city in Botswana, with a population of about 85,363, and often described as the "Capital of the North". It is located in eastern Botswana, about north-northeast from the capital, Gaborone...
, Maun
Maun
Maun is the fifth largest town in Botswana. As of 2001, it had a population of 43,776. It is an eclectic mix of modern buildings and native huts. Maun is the "tourism capital" of Botswana and the administrative centre of Ngamiland district...
and Selebi-Phikwe. By the late 1970s, Air Botswana operated one HS 748, one Douglas DC-3
Douglas DC-3
The Douglas DC-3 is an American fixed-wing propeller-driven aircraft whose speed and range revolutionized air transport in the 1930s and 1940s. Its lasting impact on the airline industry and World War II makes it one of the most significant transport aircraft ever made...
and one Vickers Viscount 754
Vickers Viscount
The Vickers Viscount was a British medium-range turboprop airliner first flown in 1948 by Vickers-Armstrongs, making it the first such aircraft to enter service in the world...
, the latter on lease from Protea Airways.
The contract with Air Services Botswana for operation of the airline was not renewed, and in 1981 British Airways
British Airways
British Airways is the flag carrier airline of the United Kingdom, based in Waterside, near its main hub at London Heathrow Airport. British Airways is the largest airline in the UK based on fleet size, international flights and international destinations...
was awarded a contract for the operation of the airline for a six year period. Also in 1981, Botswana Development Corporation was formed as a part of Air Botswana Holdings, with the corporation being tasked to acquire an aircraft for the airline to lease. The Fokker F27 was again chosen, and because of a lack of their own trained crews, the airline seconded crews from Comair
Comair (South Africa)
Comair is an airline based in South Africa. It operates scheduled services on domestic trunk routes as a British Airways franchisee and an affiliate member of the Oneworld airline alliance. Its main base is OR Tambo International Airport, Johannesburg, with hubs at Cape Town International Airport...
and contracted maintenance out to Safair Freighters. In 1983 a Lockheed L-100-30 Hercules was leased and Air Botswana Cargo was formed to operate cargo charters, and when South African Airways
South African Airways
South African Airways is the national flag carrier and largest airline of South Africa, with headquarters in Airways Park on the grounds of OR Tambo International Airport in Kempton Park, Ekurhuleni, Gauteng. The airline flies to 36 destinations worldwide from its hub at OR Tambo International...
ended services to Lesotho
Lesotho
Lesotho , officially the Kingdom of Lesotho, is a landlocked country and enclave, surrounded by the Republic of South Africa. It is just over in size with a population of approximately 2,067,000. Its capital and largest city is Maseru. Lesotho is a member of the Commonwealth of Nations. The name...
and Swaziland
Swaziland
Swaziland, officially the Kingdom of Swaziland , and sometimes called Ngwane or Swatini, is a landlocked country in Southern Africa, bordered to the north, south and west by South Africa, and to the east by Mozambique...
, a second F27 was acquired and services to Maseru
Maseru
Maseru is the capital of Lesotho. It is also the capital of the Maseru District. Located on the Caledon River, bordering South Africa, Maseru is Lesotho's only sizable city, with a population of approximately 227,880 . The city was established as a police camp and assigned as the capital after the...
and Manzini were inaugurated. A sixteen seat Dornier Do 228-200
Dornier Do 228
The Dornier 228 is a twin-turboprop STOL utility aircraft, manufactured by Dornier GmbH from 1981 until 1998. In 1983, Hindustan Aeronautics bought a production licence and manufactures the 228 for the Asian market sphere. Approximately 270 Do 228 were built at Oberpfaffenhofen, Germany and...
was leased in December 1984 from Kalahari Air Service, with the latter flying and maintaining the aircraft for Air Botswana. The 57 million pula
Botswana pula
The pula is the currency of Botswana. It has the ISO 4217 code BWP and is subdivided into 100 thebe. Pula literally means "rain" in Setswana, because rain is very scarce in Botswana - home to much of the Kalahari Desert - and therefore valuable. Pula also means "blessing" as rain is considered a...
Sir Seretse Khama International Airport
Sir Seretse Khama International Airport
Sir Seretse Khama International Airport located north of Gaborone is the main international airport of the capital city of Botswana. The airport is named for Sir Seretse Khama, the first president of Botswana...
opened on 10 December 1984, seeing Air Botswana operating from the airport. By the end of 1986, the route network included Gaborone
Gaborone
' is the capital and largest city of Botswana with a population of 191,776 based on a 2006 survey, about 10% of the total population of Botswana....
, Francistown
Francistown
Francistown or Nyangabgwe is the second largest city in Botswana, with a population of about 85,363, and often described as the "Capital of the North". It is located in eastern Botswana, about north-northeast from the capital, Gaborone...
, Johannesburg
Johannesburg
Johannesburg also known as Jozi, Jo'burg or Egoli, is the largest city in South Africa, by population. Johannesburg is the provincial capital of Gauteng, the wealthiest province in South Africa, having the largest economy of any metropolitan region in Sub-Saharan Africa...
, Harare
Harare
Harare before 1982 known as Salisbury) is the largest city and capital of Zimbabwe. It has an estimated population of 1,600,000, with 2,800,000 in its metropolitan area . Administratively, Harare is an independent city equivalent to a province. It is Zimbabwe's largest city and its...
, Lusaka
Lusaka
Lusaka is the capital and largest city of Zambia. It is located in the southern part of the central plateau, at an elevation of about 1,300 metres . It has a population of about 1.7 million . It is a commercial centre as well as the centre of government, and the four main highways of Zambia head...
, Manzini, Maseru
Maseru
Maseru is the capital of Lesotho. It is also the capital of the Maseru District. Located on the Caledon River, bordering South Africa, Maseru is Lesotho's only sizable city, with a population of approximately 227,880 . The city was established as a police camp and assigned as the capital after the...
, Maun
Maun
Maun is the fifth largest town in Botswana. As of 2001, it had a population of 43,776. It is an eclectic mix of modern buildings and native huts. Maun is the "tourism capital" of Botswana and the administrative centre of Ngamiland district...
, Selebi-Phikwe and Victoria Falls
Victoria Falls
The Victoria Falls or Mosi-oa-Tunya is a waterfall located in southern Africa on the Zambezi River between the countries of Zambia and Zimbabwe.-Introduction:...
.
Government corporation
On 1 April 1988, Air Botswana was absorbed by the Botswana government as a parastatal corporationGovernment-owned corporation
A government-owned corporation, state-owned company, state-owned entity, state enterprise, publicly owned corporation, government business enterprise, or parastatal is a legal entity created by a government to undertake commercial activities on behalf of an owner government...
under the Ministry of Works, Transport and Communications as a result of the Air Botswana Act (1988), and became the nation's flag carrier. Also in April 1988, Air Botswana because the first airline from the Southern African Development Coordination Conference
Southern African Development Coordination Conference
The Southern African Development Coordination Conference , which was the forerunner of the Southern African Development Community , was formed in Lusaka, Zambia, on 1 April 1980, following the adoption of the Lusaka Declaration by the nine founding member states The Southern African Development...
(SADCC) to establish air links with Namibia
Namibia
Namibia, officially the Republic of Namibia , is a country in southern Africa whose western border is the Atlantic Ocean. It shares land borders with Angola and Zambia to the north, Botswana to the east and South Africa to the south and east. It gained independence from South Africa on 21 March...
. Air Botswana operations are regulated by the Department of Civil Aviation under the Civil
Aviation Act (1977).
Two ATR 42–230
ATR 42
-Civil operators:The largest operators of the ATR-42 are FedEx Express, Airlinair, TRIP Linhas Aéreas,and Mexico City-based Aeromar respectively. Number of aircraft as of 2010:Some 70 other airlines operate smaller numbers of the type....
arrived in 1988, leading to the sale of the Fokkers, whilst the first BAe 146
BAe 146
The British Aerospace 146 is a medium-sized commercial airliner formerly manufactured in the United Kingdom by British Aerospace, later part of BAE Systems. Production ran from 1983 until 2002. Manufacture of an improved version known as the Avro RJ began in 1992...
arrived in November 1989. The BAe 146 entered service on 12 November on the Gaborone
Gaborone
' is the capital and largest city of Botswana with a population of 191,776 based on a 2006 survey, about 10% of the total population of Botswana....
-Harare
Harare
Harare before 1982 known as Salisbury) is the largest city and capital of Zimbabwe. It has an estimated population of 1,600,000, with 2,800,000 in its metropolitan area . Administratively, Harare is an independent city equivalent to a province. It is Zimbabwe's largest city and its...
route, operated five times per week in conjunction with Air Zimbabwe
Air Zimbabwe
Air Zimbabwe is the national airline of Zimbabwe, headquartered in Harare. From its hub at Harare International Airport, the carrier operates a network within southern Africa that also includes Asia and London-Gatwick. The company is a member of the International Air Transport Association, and of...
, along with other destinations of the network of the airline in southern Africa
Southern Africa
Southern Africa is the southernmost region of the African continent, variably defined by geography or geopolitics. Within the region are numerous territories, including the Republic of South Africa ; nowadays, the simpler term South Africa is generally reserved for the country in English.-UN...
. The airline also entered into block-seat arrangements with a number of international airlines, which included an agreement with British Caledonian
British Caledonian
British Caledonian was a private, British independentindependent from government-owned corporations airline, operating out of Gatwick Airport in the 1970s and 1980s...
which provided seats on the Lusaka
Lusaka
Lusaka is the capital and largest city of Zambia. It is located in the southern part of the central plateau, at an elevation of about 1,300 metres . It has a population of about 1.7 million . It is a commercial centre as well as the centre of government, and the four main highways of Zambia head...
-Gaborone
Gaborone
' is the capital and largest city of Botswana with a population of 191,776 based on a 2006 survey, about 10% of the total population of Botswana....
sector of the London-Lusaka
Lusaka
Lusaka is the capital and largest city of Zambia. It is located in the southern part of the central plateau, at an elevation of about 1,300 metres . It has a population of about 1.7 million . It is a commercial centre as well as the centre of government, and the four main highways of Zambia head...
-Gaborone
Gaborone
' is the capital and largest city of Botswana with a population of 191,776 based on a 2006 survey, about 10% of the total population of Botswana....
service.
In December 1992, the Batswana government enacted the Control of Smoking Act (1992), and Air Botswana became the first company in Botswana to respond to the act by banning smoking
Smoking
Smoking is a practice in which a substance, most commonly tobacco or cannabis, is burned and the smoke is tasted or inhaled. This is primarily practised as a route of administration for recreational drug use, as combustion releases the active substances in drugs such as nicotine and makes them...
on all domestic flights in 1993, which was later extended to all flights in the Southern African Development Community
Southern African Development Community
The Southern African Development Community is an inter-governmental organization headquartered in Gaborone, Botswana. Its goal is to further socio-economic cooperation and integration as well as political and security cooperation among 15 southern African states...
region in 1995. Whilst the years 1988 to 1993 saw Air Botswana incurring financial losses, in 1994 the Batswana government wrote off P74 million of the airlines losses and converted them into equity.
On 11 October 1999, the airline was crippled when in a suicide mission, airline pilot Christopher Phatswe crashed an empty ATR 42 into aircraft at Sir Seretse Khama International Airport
Sir Seretse Khama International Airport
Sir Seretse Khama International Airport located north of Gaborone is the main international airport of the capital city of Botswana. The airport is named for Sir Seretse Khama, the first president of Botswana...
, destroying his aircraft and two other Air Botswana ATR 42. Phatswe had taken the aircraft without authorisation in the early morning, and once in the air had informed the air traffic control tower that he intended to kill himself, and requested by radio to speak to several people, including Batswana President Festus Mogae
Festus Mogae
Festus Gontebanye Mogae is a Botswana politician who was President of Botswana from 1998 to 2008. He succeeded Quett Masire as President in 1998 and was reelected in October 2004; after ten years in office, he stepped down in 2008 and was succeeded by Lieutenant General Ian Khama...
and the airline's general manager
General manager
General manager is a descriptive term for certain executives in a business operation. It is also a formal title held by some business executives, most commonly in the hospitality industry.-Generic usage:...
. As Mogae was out of the country, arrangements were made for Phatswe to speak to Vice President Seretse Ian Khama, who expressed willingness to speak to the pilot. After circling Gaborone for two hours, Phatswe did two loops and crashed his aircraft at a speed of 200 knots (392 km/h) into the airline's two other ATR 42's, which were parked on the apron, destroying all three aircraft. The incident left the fleet with only a single BAe 146
BAe 146
The British Aerospace 146 is a medium-sized commercial airliner formerly manufactured in the United Kingdom by British Aerospace, later part of BAE Systems. Production ran from 1983 until 2002. Manufacture of an improved version known as the Avro RJ began in 1992...
, which had been non-operational for a year because of technical problems, forcing the airline to lease an aircraft to fulfill flight schedules. It was revealed that Phatswe had been grounded because of medical reasons, was refused reinstatement, and was regrounded until February 2000.
Towards privatisation
Because of the airline posting regularly financial losses, which in part is due to overstaffing, the operation of an ageing, fuel inefficient fleet, increasing operational costs, inadequate management expertise and an inability to retain and attract qualified pilots, the Batswana government earmarked Air Botswana to be the first of the parastatals to be privatised. The costs which the airline incurs, in conjunction with low quality of service, poor marketing, high insurance premiums and a slow uptake on new technology, has restricted growth potential for the airline. However, in the five years to 2003, the government had not had to subsidise Air Botswana, and in the previous six years had made a profit.The process of the privatisation of Air Botswana began on 19 April 2000, when the Batswana government signed a consultancy agreement with World Bank
World Bank
The World Bank is an international financial institution that provides loans to developing countries for capital programmes.The World Bank's official goal is the reduction of poverty...
-affiliated International Financial Corporation, which saw IFC being appointed as the governments main adviser in the privatisation process.
In 2003, the Batswana government attempted to privatise the airline, with Air Mauritius
Air Mauritius
Air Mauritius Limited, stylised as Air Mauritius, is the flag carrier of Mauritius. The airline is headquartered at the Air Mauritius Centre in Port Louis, Mauritius. Its main base is Sir Seewoosagur Ramgoolam International Airport...
and Comair
Comair (South Africa)
Comair is an airline based in South Africa. It operates scheduled services on domestic trunk routes as a British Airways franchisee and an affiliate member of the Oneworld airline alliance. Its main base is OR Tambo International Airport, Johannesburg, with hubs at Cape Town International Airport...
put forward by the government as strategic partners for the airline. The process would have seen the winning bidder receiving a 45% stake in the airline, with the government holding a further 45%, and employees holding the remaining 10%. It was planned that once the airline has firmed its position under new ownership, that the company would be listed on the Botswana Stock Exchange
Botswana Stock Exchange
The Botswana Stock Exchange is a small but thriving stock exchange located in Gaborone, Botswana. The Botswana share market was established in 1989 and became the Botswana Stock Exchange in 1995...
. Air Mauritius withdrew from the process in September 2003, citing the downturn in global air travel markets since the 11 September 2001 terrorist attacks in New York City. Comair withdrew in December 2003, due in part to increased competition by low-cost airlines in the South African market. The Batswana government suspended the search for a strategic partner in February 2004.
Following a P300 million loss in the first quarter of 2006, the Sunday Standard reported that the government hurriedly began efforts to privatise the airline before it became insolvent. The newspaper also revealed that the airline defaulted on its US$42,000 – 45,000 payments for the lease of the BAe 146 from April — July 2006, and that the arrears were paid once the airline's Secretary and Corporate Counsel warned that non-compliance with the contracts could lead to the termination of the lease of the aircraft and expose the corporation to claims for damages, which would affect its image during the privatisation process. In September 2006, it was announced that three potential investors had placed bids for the tender to take over the airline; Airlink
Airlink
Airlink is an airline based in Johannesburg, South Africa. It is privately owned and has developed into South Africa's first feeder network aimed at linking the smaller towns, regional centers and hubs throughout South Africa...
of South Africa, African World Airways Ltd, and Lobtrans (Ltd), a local Batswana truck fuel transporter. Shortlisted companies which didn't submit bids included Ethiopian Airlines
Ethiopian Airlines
Ethiopian Airlines , formerly Ethiopian Air Lines, often referred to as simply Ethiopian, is an airline headquartered on the grounds of Bole International Airport in Addis Ababa, Ethiopia. It serves as the country's flag carrier, and is wholly owned by the Government of Ethiopia...
, Comair
Comair (South Africa)
Comair is an airline based in South Africa. It operates scheduled services on domestic trunk routes as a British Airways franchisee and an affiliate member of the Oneworld airline alliance. Its main base is OR Tambo International Airport, Johannesburg, with hubs at Cape Town International Airport...
, Tourism Empowerment Group, ExecuJet, and Interair South Africa
Interair South Africa
Interair South Africa is an airline based in Johannesburg, South Africa. It operates scheduled passenger services from Johannesburg to regional destinations in Africa . Its main base is OR Tambo International Airport, Johannesburg.- History :...
. In November 2006, the Public Enterprises Evaluation and Privatisation Agency announced that Airlink has been put forward by the Ministry of Works and Transport as the preferred bidder for Air Botswana.
It was revealed by the Batswana press that Nico Czypionka, the man responsible for leading negotiations between the government and Airlink, had convinced the Batswana government as early as April 2006 to go into partnership with the South African airline. It was alleged that the deal with Airlink was a foregone conclusion from the beginning of the process, and that other airlines had been invited to submit bids to create and illusion of fair and equitable processes. The Sunday Standard also revealed that the blueprint for the privatisation of the airline was written by Airlink CEO Roger Foster, and was used by Botswana in its negotiations with the airline, in contravention of the Botswana Privatisation Policy of 2003.
As part of the proposed deal with Airlink
Airlink
Airlink is an airline based in Johannesburg, South Africa. It is privately owned and has developed into South Africa's first feeder network aimed at linking the smaller towns, regional centers and hubs throughout South Africa...
, it announced that Air Botswana would be wound up, and a new airline to be known as Botswana Airlink would be formed, with the Batswana government holding a controlling 50.1% share and the South African airline holding the remaining 49.9%. The new airline would have disposed of the 46-seat ATR 42s, and would instead operate 29-seat BAe Jetstream 41s, which are more suited to low traffic domestic routes. The deal would also have seen the retrenchment
Retrenchment
Retrenchment is an act of cutting down or reduction, particularly of public expenditure.-Political usage:The word is familiar in this, its most general sense, from the motto of the Gladstonian Liberal party in British politics, "Peace, Retrenchment and Reform."The manifesto for 1906 Liberal...
of all 300 employees of Air Botswana, with approximately 180 being rehired by the new airline.
The Batswana Government ceased negotiations with Airlink in October 2007, when the Batswana Cabinet reached a decision that the deal was no longer viable. A major sticking point, according to Mmegi
Mmegi
Mmegi is an English-language national newspaper in Botswana. Established in 1984, it is now published daily by Dikgang Publishing House in the capital, Gaborone. , Mmegi is Botswana's only independent newspaper to be published daily....
, was that Airlink was adamant in replacing the national colours of blue, black and white, with those of South Africa. The Cabinet also believed the proposal didn't meet requirements for air transport for the country, and didn't address government objectives for the further development of transport and tourism sectors in Botswana, although the Batswana tourism industry regards Air Botswana's monopoly of air transport in Botswana, and the resultant high fares and limited schedules, to be a major constraint for the development of tourism in Botswana
Tourism in Botswana
Botswana's principal tourist attractions are its game reserves, with hunting and photographic safaris available. Other attractions include the Okavango Delta region, which during the rainy season is a maze of waterways, islands, and lakes...
.
Following the failed deal with Airlink, the Batswana government began the search for a management company to operate the company for a three-year period, and also announced that the government would recapitalise the airline by injecting P100 million to improve performance and to make it more attractive for privatisation. The government entered into negotiations with Comair, but following disagreements over terms, negotiations continued with reserve bidder International Development Ireland, in conjunction with Aer Arann
Aer Arann
Aer Arann is a regional airline based in Dublin, Ireland. Aer Arann operates scheduled services from Ireland and the Isle of Man to destinations in Ireland, the United Kingdom, and France, with a fleet of 18 aircraft. Aer Arann has expanded from a single aircraft to Ireland's third largest airline...
.
According to press reports in August 2008, Alexander Lebedev
Alexander Lebedev
Alexander Yevgenievich Lebedev is a Russian businessman, referred to as one of the Russian oligarchs.In May 2008, he was listed by Forbes magazine as one of the richest Russians and as the 358th richest person in the world with an estimated fortune of $3.1 billion...
, a Russian oligarch
Business oligarch
Business oligarch is a near-synonym of the term "business magnate", borrowed by the English speaking and western media from post-Soviet parlance to describe the huge, fast-acquired wealth of some businessmen of the former Soviet republics during the privatization in Russia and other post-Soviet...
, expressed interest in investing in the airline, and the Ministry of Works and Transport confirmed that Lebedev was invited to travel to Gaborone to present his bid to the government. Part of the bid reportedly included extending Air Botswana's route network to Düsseldorf Airport; the base of Blue Wings
Blue Wings
Blue Wings AG was a charter airline based in Germany, focussing on serving Turkey, the Middle East and Russia from its base at Düsseldorf International Airport; the headquarters were in Bocholt, Germany.- History :...
which is 48% owned by Lebedev's National Reserve Corporation. At the end of 2008, it was reported that Lebedev had abandoned plans for investment in Air Botswana.
In December 2008, Air Botswana signed a deal with ATR for two 68-seat ATR 72–500
ATR 72
The ATR 72 is a twin-engine turboprop short-haul regional airliner built by the French-Italian aircraft manufacturer ATR. ATR and Airbus are both built in Toulouse, and share resources and technology...
regional airliner
Regional airliner
A regional airliner or a feederliner is a small airliner designed to fly up to 100 passengers on short-haul flights, usually feeding larger carriers' hubs from small markets. This class of airliners are typically flown by the regional airlines that are either contracted by or subsidiaries of the...
s worth US$37 million. The aircraft were delivered in March 2009, and it was announced that routes linking Kasane
Kasane
Kasane is a town in Botswana, close to Africa's 'Four Corners', where four countries almost meet: Botswana, Namibia, Zambia and Zimbabwe. It is at the far north-eastern corner of Botswana where it serves as the administrative center of the Chobe District...
and Francistown
Francistown
Francistown or Nyangabgwe is the second largest city in Botswana, with a population of about 85,363, and often described as the "Capital of the North". It is located in eastern Botswana, about north-northeast from the capital, Gaborone...
with Johannesburg
Johannesburg
Johannesburg also known as Jozi, Jo'burg or Egoli, is the largest city in South Africa, by population. Johannesburg is the provincial capital of Gauteng, the wealthiest province in South Africa, having the largest economy of any metropolitan region in Sub-Saharan Africa...
would be restarted. The aircraft were delivered at the time of Air Botswana facing increased competition from South African Airways
South African Airways
South African Airways is the national flag carrier and largest airline of South Africa, with headquarters in Airways Park on the grounds of OR Tambo International Airport in Kempton Park, Ekurhuleni, Gauteng. The airline flies to 36 destinations worldwide from its hub at OR Tambo International...
which had re-entered the Johannesburg-Gaborone market. In July 2009, Air Botswana signed a codeshare agreement with Kenya Airways
Kenya Airways
Kenya Airways Ltd., more commonly known as Kenya Airways, is the flag carrier and largest airline of Kenya. The company was founded in 1977, after the dissolution of East African Airways. The carrier's head office is located in Embakasi, Nairobi, with its main base at Jomo Kenyatta International...
, which began flights to Gaborone
Gaborone
' is the capital and largest city of Botswana with a population of 191,776 based on a 2006 survey, about 10% of the total population of Botswana....
on 6 September with three flights per week.
The airline, which withdrew from the International Air Transport Association
International Air Transport Association
The International Air Transport Association is an international industry trade group of airlines headquartered in Montreal, Quebec, Canada, where the International Civil Aviation Organization is also headquartered. The executive offices are at the Geneva Airport in SwitzerlandIATA's mission is to...
because of its inability to meet the December 2008 deadline of the IATA Operational Safety Audit
IATA Operational Safety Audit
The IATA Operational Safety Audit programme is an internationally recognised and accepted evaluation system designed to assess the operational management and control systems of an airline. IOSA uses internationally recognised quality audit principles and is designed to conduct audits in a...
, announced plans to rejoin the association in 2009.
Destinations
As of August 2010, Air Botswana operates scheduled passenger flights to the following destinations:| City | Airport Code | Airport Name | |||
|---|---|---|---|---|---|
| IATA | ICAO | ||||
 Botswana |
|||||
| Francistown Francistown Francistown or Nyangabgwe is the second largest city in Botswana, with a population of about 85,363, and often described as the "Capital of the North". It is located in eastern Botswana, about north-northeast from the capital, Gaborone... |
FRW | FBFT | Francistown Airport Francistown Airport Francistown Airport is a public airport in Francistown, Botswana . It has two runways, one paved and one not, and most flights fly for the airline Air Botswana.-Expansion:... |
||
| Gaborone Gaborone ' is the capital and largest city of Botswana with a population of 191,776 based on a 2006 survey, about 10% of the total population of Botswana.... |
GBE | FBSK | Sir Seretse Khama International Airport Sir Seretse Khama International Airport Sir Seretse Khama International Airport located north of Gaborone is the main international airport of the capital city of Botswana. The airport is named for Sir Seretse Khama, the first president of Botswana... |
||
| Kasane Kasane Kasane is a town in Botswana, close to Africa's 'Four Corners', where four countries almost meet: Botswana, Namibia, Zambia and Zimbabwe. It is at the far north-eastern corner of Botswana where it serves as the administrative center of the Chobe District... |
BBK | FBKE | Kasane Airport Kasane Airport Kasane Airport is an airport in Kasane, Botswana . The airport is located approximately 7 km southeast of the town along the Kisane–Kachikau Road. Air Botswana provides scheduled service between Kasane and Gaborone on Tuesdays, Fridays, and Sundays... |
||
| Maun Maun Maun is the fifth largest town in Botswana. As of 2001, it had a population of 43,776. It is an eclectic mix of modern buildings and native huts. Maun is the "tourism capital" of Botswana and the administrative centre of Ngamiland district... |
MUB | FBMN | Maun Airport Maun Airport Maun Airport is an international airport serving the town of Maun in the northern part of Botswana . It is an important part of the local infrastructure and serves as the main touristic gateway to the Okavango Delta and the Moremi Game Reserve. Additional popular tourist destinations like Chobe... |
||
 South Africa |
|||||
| Johannesburg Johannesburg Johannesburg also known as Jozi, Jo'burg or Egoli, is the largest city in South Africa, by population. Johannesburg is the provincial capital of Gauteng, the wealthiest province in South Africa, having the largest economy of any metropolitan region in Sub-Saharan Africa... |
JNB | FAJS | OR Tambo International Airport | ||
 Zimbabwe |
|||||
| Harare Harare Harare before 1982 known as Salisbury) is the largest city and capital of Zimbabwe. It has an estimated population of 1,600,000, with 2,800,000 in its metropolitan area . Administratively, Harare is an independent city equivalent to a province. It is Zimbabwe's largest city and its... |
HRE | FVHA | Harare Airport | ||
 Zambia |
|||||
| Lusaka Lusaka Lusaka is the capital and largest city of Zambia. It is located in the southern part of the central plateau, at an elevation of about 1,300 metres . It has a population of about 1.7 million . It is a commercial centre as well as the centre of government, and the four main highways of Zambia head... |
LUN | FLLS | Lusaka International Airport Lusaka International Airport Kenneth Kaunda International Airport is an international airport in Lusaka, Zambia, and was the hub of Zambian Airways. Formerly Lusaka International Airport, now called Kenneth Kaunda International Airport. The airport was renamed in honour of the first president of the Republic of Zambia Dr... |
||
Fleet
The Air Botswana fleet consists of the following aircraft (as of May 2011): http://www.airfleets.net/flottecie/Air%20Botswana.htm| Aircraft | Total | Passengers (Business/Economy) |
Routes |
|---|---|---|---|
| ATR 42-500 | 3 | 47 | Domestic, Johannesburg Johannesburg Johannesburg also known as Jozi, Jo'burg or Egoli, is the largest city in South Africa, by population. Johannesburg is the provincial capital of Gauteng, the wealthiest province in South Africa, having the largest economy of any metropolitan region in Sub-Saharan Africa... and Harare Harare Harare before 1982 known as Salisbury) is the largest city and capital of Zimbabwe. It has an estimated population of 1,600,000, with 2,800,000 in its metropolitan area . Administratively, Harare is an independent city equivalent to a province. It is Zimbabwe's largest city and its... |
| ATR 72-500 | 2 | 68 | Domestic, Johannesburg Johannesburg Johannesburg also known as Jozi, Jo'burg or Egoli, is the largest city in South Africa, by population. Johannesburg is the provincial capital of Gauteng, the wealthiest province in South Africa, having the largest economy of any metropolitan region in Sub-Saharan Africa... |
| BAe 146-100 | 2 | 116 | Johannesburg Johannesburg Johannesburg also known as Jozi, Jo'burg or Egoli, is the largest city in South Africa, by population. Johannesburg is the provincial capital of Gauteng, the wealthiest province in South Africa, having the largest economy of any metropolitan region in Sub-Saharan Africa... (from Maun Maun Maun is the fifth largest town in Botswana. As of 2001, it had a population of 43,776. It is an eclectic mix of modern buildings and native huts. Maun is the "tourism capital" of Botswana and the administrative centre of Ngamiland district... ) |
| Total number of aircraft | 7 |