Rwandair will double its fleet in the next five years, officials say, and the company will be listed on the Rwandan Stock Exchange by 2020.
The 99 per cent government owned air travel operator is beginning an expansion push that it expects will double the number of aircraft in its fleet, with a view to increasing routes in Africa, and also launching new itineraries, introducing European, Chinese and Indian destinations.
While the fleet at the moment consists of seven aircraft, the company has plans in place to increase the number of craft to 17 by 2015. In a first step to achieving this target, Rwandair recently purchased a new Bombardier CRJ-900, with a second vessel due to arrive next week.
“We have plans that after 2015 – after we have consolidated as a regional carrier – we will start operating out of the continent into Europe and also China,” Chief Executive Officer of Rwandair, John Mirenge told Reuters.
He added, with a view to fleet expansion: “We are already talking to Boeing about their 787s that can reach Europe and China with some good cargo holds that will carry the excess baggage that are required.”
Mirenge also noted that Rwandair plans to roll out services to Juba in South Sudan soon, and may decide to launch flights to the Cameroon, the Ivory Coast, Zambia and Zanzibar in the near future as expansion unfolds.
While the company operates a mixture of fully-owned and leased aircraft, it has no plans to invest substantial amounts in purchasing new vessels, but will continue to operate both owned and leased planes throughout its upcoming expansion.
Mirenge explained: “We are not looking at ourselves going into a buying spree because that burdens your balance sheet and it’s not a good mix. So if the demand on a market requires it there are always planes to lease, as long as they can pay for their own survival.”
The currently loss-making company hopes to turn around its financial situation, and expects losses to turn to profits within the next few years. Once profitable, the company will become a publically traded entity, listed on the Rwandan Stock Exchange.
Mirenge revealed that according to the company’s estimates, listing will occur between 2018 and 2020. However, he noted that the majority owner – the Rwandan government – may have other plans with regard to a public sale of shares, saying: “… the government, I think, plans to start progressively divesting much earlier than that, as soon as the company is viable and starts breaking even.”
