Globally, many airlines wish to become profitable considering the odds that have hit the air transport industry in the last 3 years, which keep several airlines in the red on an on-going basis. The economic crisis that tapered out in 2009 and the current fuel crisis buoyed by a number of global disturbances have all worsened issues for airlines.

Despite these, in the Africa region, a number of airlines have sustained impressive outings year-on-year. In specificity, the story of Tanzania-based Precision Air is akin to that of a young bright contestant performing well in the tests, and graduating rapidly upward on the rungs of the ladder of fame and enviable accomplishments. Precision Air has firmly sustained a commendable financial performance that would keep investors exhilarated. The airline has just completed taking delivery of its ordered ATRs, which power its increasing regional importance.

Besides, the airline now targets "massive expansion" and much of its initial public offer which will help the airline garner the essential financial energy to launch out further on the regional and, perhaps, farther flung markets. In an environment where not too many airlines would appear enticing enough to attract public buying of their shares, the Precision Air's inclination to its initial public offer (IPO), which would give it the financial energy to launch its intended "massive expansion", is notable.  Commenting on Precision Air's recent achievements, Mr. Kioko says: "We have just completed our fleet modernization programme, where we got 7 brand new ATRs. Our company plans massive growth in the coming year." The airline intends to move to the second phase of fleet expansion, as the CEO says "the first one was fleet modernization, meaning we are replacing the old equipment with new ones."

Precision Air's intent on the stock market to raise about USD 35-40 million that will support is next phase of fleet expansion. "In the next three years, we may add another 3-5 ATRs. Our plan is to add 3 to 5 more turboprops. We are also looking at Next-Generation 737-300s as well as Embraer," he enthuses, saying the airline is also considering other options. Precision is particular about the 90-100 seater jets, the brand of which, perhaps, may depend on how sellers present their terms, even though the airline is yet to decide on this. The airline is looking towards running equally on the "newer Boeings", and is already thinking of 737-800s.

"So, all in all, we are talking of between 12 and 15 aircraft in the next five years,' explains Mr. Kioko.  The airline has also received a number of awards, which may not be surprising to people familiar with the airline's workings. "We have our business model; we first wanted to have a very firm foundation within the domestic sector," Mr. Kioko says. In line with its plan, the airline also wanted to expand into the region, and now it operates almost 15 flights to Kenya from Tanzania, and operates also into Uganda.

But over and above that, Mr. Kioko states, "there is a wider East African market and we are also focusing more on that.

Now Precision is keen on Johannesburg, South Africa, as another regional destination, and it is thinking of extending services to Lusaka, Malawi, Lubumbashi, as well as Luanda in Angola and the Comoros in 2011.

"We follow our business model, we are very conscious about costs, and of course, we try to choose the right aircraft for our business model, and then drive the business," he says.  The airline strives for new ways of doing things and adding efficiency, as Mr. Kioko is wont to create "some kind of turbulence so that we are not complacent."

On the much talked-about cooperation among African airlines, he thinks that a lot of work needs to be done though airlines are making efforts in this regard. For example, he says, "our partnership with Kenya Airways is working very well, and both airlines have benefited from each other." Rather than competing, he says, the airlines "sort of agree and pool resources together."

He also believes that there is "a lot we can also gain from the pioneer big brothers like Ethiopian and South African Airways; because these airlines do have some facilities which we can use for training purposes." He wants airlines to share knowledge and even team up to get commodities at cheaper rates, lamenting, "We are not really doing that a lot." Though this cooperation is not as widespread as have been campaigned by proponents of growth in African airlines industry, Mr. Kioko says this closer cooperation is picking up in the continent. "More and more airlines are coming together and, of course, working together. I think Africa is opening up. Unlike before when people used to travel all the way to Europe to come to West Africa, from East Africa, for instance, there are now carriers having direct flights to West Africa. You do not have to go to Europe to get, maybe, European carriers. The network is increasing; and I feel more and more chances are being created by African carriers," he states with a note of optimism. However, Mr. Kioko thinks there are still a number of challenges facing Africa's air transport industry in this regard, especially those arising from Bilateral Air Services Agreement (BASA), as market access is not made readily available to fellow Africans in parts of the continent.

Though foreign airlines competition is high and increasing on the continent, Mr. Kioko sees the influx of foreign airlines into Africa a sign of the potentials in the continent. "What it means is that there's a lot of potential; most foreign carriers focus on Africa. I would say it's like there's a second scramble for African nations; the first one being when foreigners came and colonized Africa. Now, they are always trying to come back to see if they can reap benefits from Africa. It's a good thing and a bad thing: a good thing because, they give us the network, and we could cooperate with them and learn from them. However, it is bad because it shows that the African airlines are unable to harness many potentials in Africa. It is a challenge for us."

He urges African airlines to take advantage of the tourism and other resources in Africa, saying, "I think the African carriers just need to come together and work without fear, have very high targets and know exactly what they want to do with their business. I'm sure they can make better businesses."

Frantic efforts are on-going in Africa to bolster safety in the air transport industry. Mr. Kioko is of the conviction that safety cannot be compromised, especially for airlines, even though the blacklisting of African airlines by the European Union may not have been handled as expected. "The criteria in which they blacklist African carriers is the issue here, because you just hear that more African carriers are being blacklisted. But when it comes to European carriers, they are very few that are blacklisted, and I think some of them also are reviewed after sometime and they get out of the blacklist. But it's not so for African airlines."

He calls for equity in market saying that neutral regulators would be better for the industry. "In this market you want to be more efficient, and you want to be safe. We need neutral bodies; for example, rather than European Union, we need ICAO to be the custodian of that (decision on blacklisting airlines)." EU, he says, also has its own interests and wants its carriers to come to Africa and conduct sound businesses.

He admits that airlines suffered losses following the recession, even though fuel prices had gone down which brought temporary relief to airlines. But the rising fuel prices have again now set airlines on a difficult terrain where they are forced to raise air fares via fuel surcharges, and run the risk of losing part of their low-fare passenger segment.

"For 2010, I would say, of course we are coming out of recession, where most airlines really suffered huge loses. Also, during that time, we had fuel prices go down. But again they have gone up, and it is a major concern now," he notes. "Slowly, it's also wiping out profitability for airlines." Despite these daunting challenges, Mr. Kioko has great confidence in the potential of airlines to perform better in Africa saying that African airlines "just need to focus."

Looking ahead into 2011, the Precision Air CEO says African airlines are learning through the hard way, remarking that airlines should be wary of old aircraft which might appear cheap, but actually costlier in the longer-term. "I think for African airlines, we are learning through the hard way; but the old equipment that we think are cheaper, in the long run, become very expensive. The newer equipment is not only good for business in the sense that it leads to a good customer appeal; but when it comes to the cost pushing elements, they are very low. So, airlines now are thinking more of getting new equipment rather than the old ones, and with that, of course, the accident rate will also go down."

He laments the situation whereby Africa has became a dumpsite for inefficient tired aircraft from other regions. And this is contributory to the current relatively low safety performance in Africa. The argument against old or ageing aircraft is on the more frequent recurrence of its maintenance, which translates to more frequent spending of scarce resources. Besides, aircraft is more beneficial flying for revenue than mothballing or staying on the ground for repairs. "I would say Africa has been used as a dumping ground to the extent that most of the equipment that could not be used in Europe or elsewhere would just be brought to Africa and that is where we have the problem of safety mainly. Of course, there are other operational issues, but that is one of the key things," he states.

Precision Air has won a number of awards for its frontline role in the airlines market in Africa. Its latest laurel, perhaps, came from the African Airlines Association (AFRAA), which gave the airline an award for being the best regional airline in Africa, for the airline's business model and services it offers in Africa. The airline has also bagged the Aviation & Allied Business Corporate Achievement Award.

"It's a good thing for us," Mr. Kioko states, adding, "it shows that our peers and the industry recognize us. They know where we are coming from, the efforts that we've made and the progress we've made so far."

Importantly, Africa's emerging market will requires local airlines to rev it up and render it more beneficial to various State economies.

The continent would be depending on vibrant African airlines to deliver such benefits and present a competitive front in the face of fierce contest from foreign airlines. And Precision Air is one of such airlines that Africa would rely on for improved interconnectivity and economic development. The expected expansion and profitability of Precision Air over the next coming years will not be seen as a challenge to other thriving African airlines, but should be viewed as a complement that would foster robustness and virility among African airlines. And, the sky is not the limit for Precision Air's on-going "massive growth."