Precision Air needed a $32 million bailout package to meet financial obligations, including bank loans and debt owed to aircraft suppliers, according to a report published by Africa Review. The report said the airline was seeking funds from sources that included the government of Tanzania.
"Our cash flow is now constrained. The audited accounts for 2012 will be out any time from next week and for the first time we are going to post a loss," Precision Air Founder and Chairman, Michael Shirima, was quoted as saying.
The Tanzanian airline has confirmed with Tourism Update the need for financial funding but would not comment on the sum required.
This news comes after the airline discontinued its Lubumbashi-Lusaka route last month, saying the business climate left it with no option other than closing the route. Late last year, the airline cancelled its direct service to Johannesburg.
Precision Air currently operates daily flights to Nairobi, Kenya, and Entebbe, Uganda, as well as four flights to the Comoros. The airline has codeshare agreements with Mozambique Airlines for flights to Pemba, Maputo and Nampula and with RwandAir for flights to Kigali.
