Rwandan carrier Alliance Express has posted a $4 million operating loss for its first trading year, ended 31 March, with the result blamed on its failure to open routes to the Democratic Republic of Congo (DRC) because of the conflict there.
The airline, formed in February last year, is 51%-owned by the Rwandan Government, with Uganda's Alliance Air - itself 40%-owned by South African Airways (SAA) - holding 49%.
Alliance Express reported turnover of more than $6 million for the year, but lost $4 million in operations. Deputy managing director Ochieng Obbo says the performance exceeded expectations, although a political row between Rwanda, Uganda and the DRC meant the Kigali-Lubumbashi- Kinshasa route could not be developed.
Rwanda has an air passenger market of around 70,000 travellers a year and SAA has proposed that it be merged into a single East African operation with the national carriers of Uganda and Tanzania as part of their privatisation. The scheme has met problems, however, with the Ugandan parliament raising concerns over the impact of the SAA plan on Uganda Airlines and Air Tanzania also expressing worries over its future.
The latter two airlines each hold 30% of Alliance Air, which would also be incorporated into the new operation.
Source: Flight International
