Privatization of RwandAir: "we are at the final phase of negotiations"
RwandAir wants to become a 1st tier carrier in Africa. To achieve its goals, the Rwandan government has set its sights on Qatar Airways - one of the most successful airlines in the world - as a strategic partner.
The Covid-19 does not seem to slow down the enthusiasm of the new tandem.
The talks for the acquisition of the stakes in RwandAir by Qatar Airways are continuing normally. In an interview with The Africa Report, Wednesday, March 17, the Minister of Finance and Economic Planning, indicated that the process should soon be completed.
"We are in the final phase of negotiations, the company will be stronger with a larger fleet and more resources," informs Uzziel Ndagijimana, who is refraining for the moment from giving the date of signing of the final agreements.
In February 2020, Qatar Airways chief executive Akbar al-Baker said his company would acquire a 49% stake in the Rwandan national carrier. This after taking, in December 2019, a 60% stake in the new Bugesera airport (east of Kigali), a project worth nearly $ 1.3 billion and initially slated for completion. Once the case is finalized, RwandAir - which has accumulated an annual loss of nearly $ 50 million since its creation - intends to start afresh as it saw its financial situation worsen with the health crisis.
The government will inject 145 billion Rwandan francs ($ 145.5 million) into the company's coffers, as part of the 2020/2021 budget. The composition of its fleet should also be changed, revealed Managing Director Yvonne Manzi Makolo. This is what justified the cancellation of its order book, concluded in 2018 and which included two A330neo and two 737 MAX. The European aircraft was to be supplied through Air Lease Corp (ALC), while the MAXs were ordered through SMBC Aviation Capital. Rwandair currently has twelve aircraft including one A330-300, one A330-200, two 737-700s, four 737-800s, two CRJ900s and two Dash-8s.
