TANZANIA CIVIL AVIATION AUTHORITY

ANNUAL REPORT FOR THE YEAR ENDED 30 JUNE 2008

12 MARCH 2009

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TABLE OF ABBREVIATIONACC Area Control CentreAFCAC African Civil Aviation CommissionAFI Africa-Indian Ocean RegionAIP Aeronatiutical Information PublicationAMEs Aircraft Maintenance EngineersAMOs Aircraft Maintenance OrganizationsANS Air Navigation ServicesAOC Air Operators CertificateATCL Air Tanzania Company LtdATAG Air Transport Action GroupATCO Air Traffic Control OfficerATCOs Air Traffic Control OfficersATM Air Traffic ManagementATRATS DS Air Traffic Services Direct SpeechAVSEC Aviation SecurityAWOS Automated Weather Observation SystemBASA Bilateral Air Service AgreementCASSOA Civil Aviation Safety and Security Oversight AgencyCATC Civil Aviation Training CentreCCC Consumer Consultative CouncilCILT Chartered Institute of Logistics and TransportCCs Compliance ChecklistsCMCC Civil Military Coordination MeetingCNS Communications, Navigation and SurveillanceCVOR Conventional Very High Frequency Omni-Directional Radio Range DHCDME Distance Measuring EquipmentDVOR Doppler Very High Frequency Omni-directional Radio Range EAC East African CommunityEIB European Investment BankENAC French Institute of Civil Aviation TrainingERB Engineers Registration BoardFAA Federal Aviation AdministrationFPL Flight PlanFIR Flight Information RegionGDP Gross Domestic ProductGHRs Ground Handling RegulationsGIS Geo-Informatics SystemGPS Global Positioning SystemHF High FrequencyIASA International Aviation Safety Assessments/AuditIATA International Air Transport AssociationICAO International Civil Aviation OrganisationICT Information Communication TechnologyIET Institute of Engineers of TanzaniaISO International Standard Organisation

JNIA Julius Nyerere International AirportKIA Kilimanjaro International Airport

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KRA Key Results AreaNAFISAT North-Eastern Africa and Indian Ocean Region VSAT NetworkNACTE National Council for Technical EducationNC National Coordinator (for ICAO USOAP)NDB Non-Directional Radio BeaconNOF International NOTAM OfficeNOTAM Notification to airmanOJT On-the-Job TrainingOPRAS Open Performance Review and Appraisal SystemPANS Procedures for Air Navigation ServicesPIB Pre flight Information BulletinPPRA Public Procurement Regulatory AuthorityNC National Coordinator (for ICAO USOAP)RCP Required Communication PerformanceRCC Rescue Coordination CentreRSC Rescue Sub-Coordination CentreRVSM Reduced Vertical Separation MinimumSAAQ State Aviation Activity QuestionnaireSAR Search and RescueSIDS Standard Instruments Departure RoutesSSI Station Standing InstructionsSTP Standard Training PackageSMS Safety Management SystemSWOT Strengths, Weaknesses, Opportunities and ThreatsTAISOA Tanzania Aeronautical Information Officers AssociationTANEEA Tanzania Air Navigation and Electronics Engineers AssociationTANRs Tanzania Air Navigation RegulationsTATCA Tanzania Air Traffic Controllers AssociationTCARs Tanzania Civil Aviation RegulationsUFIR Unified Upper Flight Information RegionUACC Upper Area Control CentreUSAP Universal Security Audit Programme

USOAP Universal Safety Oversight Audit Programme

VSAT Very Small Aperture TerminalVCCS

Voice Communication and Control System

VHF Very High FrequencyVOR Very High Frequency Omni-directional Radio Range WAN Wide Area NetworkYD Yamoussoukro Decision

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TABLE OF CONTENTS

ACC i

Area Control Centre ________________________________________________________ i

ANS i

Air Navigation Services ______________________________________________________ i

ATCO i

Air Traffic Control Officer ___________________________________________________ i

CATC i

Civil Aviation Training Centre ________________________________________________ i

DHC i

DME i

Distance Measuring Equipment _______________________________________________ i

ISO i

International Standard Organisation __________________________________________ i

JNIA i

Julius Nyerere International Airport ___________________________________________ i

NAFISAT _________________________________________________________________ ii

North-Eastern Africa and Indian Ocean Region VSAT Network ___________________ ii

NACTE __________________________________________________________________ ii

National Council for Technical Education ______________________________________ ii

ANNUAL REPORT FOR THE YEAR 2007/08 _________________________________ 1

CORPORATE GOVERNANCE ______________________________________________ 1

All members of the Board adhered to the Code of Ethics and Conduct for the Public Service. In addition, the Chairman and Director General had to comply with the Public Leadership Ethics Code. ______________________________________________ 1

CHAIRMAN’S STATEMENT _______________________________________________ 2

Mwatumu J. Malale ...................................................................................................................... 2

DIRECTOR GENERAL’S STATEMENT _____________________________________ 3

1.0AIR NAVIGATION SERVICES ___________________________________________ 4

1.1Air Traffic Incidents _____________________________________________________ 4

1.2Proficiency and adequacy of Staff __________________________________________ 4

1.3Availability of New CNS facilities __________________________________________ 4

1.4Operation of facilities at optimum level ______________________________________ 5

1.5Air Traffic Services ______________________________________________________ 5

1.6Aeronautical Information Services _________________________________________ 6

1.7The Civil Aviation Training Centre _________________________________________ 7

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2.0SAFETY AND SECURITY REGULATION _________________________________ 7 1.1 Safety Oversight ..................................................................................................................................... 7 1.2 Flight Operations inspections and surveillance ..................................................................................... 8

2.1Aviation English Tests/Ratings _____________________________________________ 8

2.2Airworthiness inspection and surveillance ___________________________________ 9

2.3Technical Examinations __________________________________________________ 9

2.4Personnel Licenses and Certificates issued __________________________________ 10

2.5Licences and certificate renewals __________________________________________ 11

2.6Licence endorsements ___________________________________________________ 11 1.3 Air Navigation and Aerodromes Regulation ....................................................................................... 12 1.4 Sale of Documents ............................................................................................................................... 12 1.5 Incidences and Accidents rates ............................................................................................................ 12 1.6 Oversight of Aviation Security ............................................................................................................ 13

2.7Regional initiatives in the areas of safety and security _________________________ 13 1.7 Training for Pilots and Aircraft Maintenance Engineers ..................................................................... 13 2.0 ECONOMIC REGULATION ............................................................................................................. 13 1.1 Air Transport Regulation ..................................................................................................................... 13 1.2 Regional and International Cooperation in Air Transport ................................................................... 14 1.3 Coordination of Facilitation of Air Transport ...................................................................................... 15 1.4 Statistical Reports and Industry Performance ...................................................................................... 15 Statistical Reports .................................................................................................................................... 15 Industry Performance ................................................................................................................................ 15 4. CORPORATE SERVICES .................................................................................................................... 17 4.1 Human Resources ............................................................................................................................. 17 4.2 Procurement ........................................................................................................................................ 17 4.3 Aviation House ................................................................................................................................... 17

LIST OF FIGURES

Figure1 : Air Traffic movements at Airports____________________________________6

Figure 2 : Flight Operations Inspections and Surveillance _______________________8

Figure 3 : Airworthiness Inspections and Surveillance____________________________9

Figure 4: Technical Examinations Booked ____________________________________10

Figure 5 : Licences and Certificates Issued____________________________________10

Figure 6 : Licence and Certificates Renewals__________________________________11

Figure 7: Licence Endorsements_____________________________________________11

Figure 8: Number of Accidents and Incidents rates_____________________________12

Figure 9: Air Operators Licence renewal and New Applicants ___________________14

Figure 10: Aircraft Movements_____________________________________________15

Figure 11: Passenger Traffic________________________________________________16

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ANNUAL REPORT FOR THE YEAR 2007/08

CORPORATE GOVERNANCE

The first Board of Directors, which was appointed in September 2004 following the establishment of the Authority in November 2003, continued to govern the affairs of the Authority during this period.

The Board had the following members:

(i) Mrs. Mwatumu J. Malale (Chairman)(ii) Mr. Mbwana Juma Mbwana (Vice Chairman)(iii) Hon. Thuwaybah Kissasi (iv) Prof. Arnold Temu(v) Mrs. Margaret T. Munyagi(Director General)

This was subsequent to the resignation of Mrs Caroline Lemki in July 2007 after she was appointment to the Board of Air Tanzania Company Limited, to avoid a potential conflict of interest. Further, from September 2007 up to June 2008, the Vice Chairman, Mr. Mbwana Juma Mbwana, did not participate in Board activities after his tenure expired.

During this period, the Board of Directors continued to exercise satisfactory its mandate of the strategic control of the affairs of the Authority and ensured that the Authority achieved satisfactory performance in its regulatory and service provision roles.

To help the Board take informed decisions, the Board used its four Committees to scrutinize beforehand some of the matters before they were brought to the Board. These Committees are:

(i) The Executive Committee (ii) The Human Resources and Administration Committee(iii) The Finance and Audit Committee (iv) The Technical Committee

During this period, Ms Jane Lyimo was the Secretary to Board and its Committees.

All members of the Board adhered to the Code of Ethics and Conduct for the Public Service. In addition, the Chairman and Director General had to comply with the Public Leadership Ethics Code.

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CHAIRMAN’S STATEMENT

I have the honour to present this Annual Report, the fifth since the Authority was established in November 2003. The Report provides the Board with another opportunity to highlight to its stakeholders, the performance of the Authority during the past year and how it has discharged its duties and responsibilities in accordance with its legal mandate.

During this period, the Authority continued to implement its 2004/05 – 2008/09 Five-Year Strategic Plan which spells out its Vision, Mission, Key Results Areas and the Key Performance Indicators.

Although during this period the accident rate was lower compared to the previous year, there were more accidents. The Board considers this trend as undesirable and is therefore poised to ensure that the Authority does take appropriate measures to reverse the situation in the coming year.

On the other hand, the industry registered an increase of about 9% in passenger traffic and 11% in aircraft movement compared to the previous year. This growth is expected to continue as the country continues to market Destination Tanzania to potential new markets and eases restrictions on traffic rights as part of its policy of gradual liberalization of air transport.

Financially, the Authority has again registered a modest surplus which will be used to augment its Special Account dedicated to Staff Development and capital expenditure. However, one of the major challenges facing the Authority is financial self-sufficiency, which is critical to the Authority’s ability to fund its expanded mandate and maintain adequate air navigation information infrastructure.

The Board would like to record its appreciation to its Stakeholders including the Government of the United Republic of Tanzania and that of the Revolutionary Government of Zanzibar for the support the Authority has continued to receive from them. Further, the Board acknowledges the technical support which the development partners and ICAO have been extending to the Authority particularly through their support to the EAC regional safety agency CASSOA. All this support has enabled the Authority fulfill its mandate more effectively.

I look forward to your continued cooperation in the pursuit of a safe and orderly air transport system.

Mwatumu J. MalaleChairman of the Board of Directors

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DIRECTOR GENERAL’S STATEMENT

During the year ended 30 June 2008, the Authority continued to satisfactorily ensure the safety, security and the regularity of air transport within, to and from the United Republic of Tanzania.

In the safety oversight area, Tanzania Civil Aviation Regulations (TCARs) 2006 that were harmonized by the EAC Partner States and adopted in June 2007 came into force in January 2008. This step has consolidated further the establishment of the regional safety oversight agency CASSOA, whose main role is to coordinate the partner States compliance to ICAO Standards and Recommended Practices and procedures.

During this period, there were eight accidents all of them involving general aviation operations compared five accidents reported in the previous year. The Authority is enhancing its continued surveillance programme and ensuring operators establish and implement safety management systems.

With regard to air transport, the Authority promulgated the Tanzania Ground Handling Regulations, 2007 and held a Public Inquiry on liberalization of the ground handling services during this period. The inquiry resulted in commissioning IATA to advise the Authority on how best to achieve the liberalization efficiently in view of the traffic and infrastructural constraints. IATA’s report will be submitted next financial year.

During this period, the provision of air navigation services was satisfactory. The air traffic incident rate of 0.62 (per 10,000 movements) was a little bit higher than the previous year’s rate of 0.53 which could also mean that during the period, the pilots reported better air traffic incidents.

To enhance communications, navigation and surveillance, new recording equipment, NDB Monitors, stand by power generators and new VHF radios were installed at various airports including Julius Nyerere, Zanzibar, Mwanza, Arusha, Tanga, Pemba, Mtwara and Kigoma Airports.

During the period under review, the construction of the Authority’s Head Office Building (Aviation House) at the JNIA premises, commenced in December 2008 and is scheduled to be completed by June 2009.

I would like to take this opportunity to express my sincere appreciation to the Stakeholders for their continued cooperation in ensuring the aviation industry in Tanzania remains safe despite its many challenges. I would like to assure that your partnership is indeed valued and should be sustained.

Margaret MunyagiDirector General

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OPERATIONAL PERFORMANCE

During this period, the performance of the Authority measured against set targets was satisfactory. Specifically, the following was the performance levels in the various key results areas:

1.0 AIR NAVIGATION SERVICES

During this period, the Authority provided air traffic services in the Dar es Salaam Flight Information Region (FIR), including the airspace above 24,500 feet over the territories of Burundi and Rwanda satisfactorily. Operation and maintenance of communication, navigation and surveillance facilities in the country were carried out satisfactorily also and in accordance with the Africa-Indian Ocean (AFI) Air Navigational Plan. The service targets reached in the specific areas are as follows:

1.1 Air Traffic Incidents

During the year, there were 4 incidents all of which were ‘AIRPROX’, giving a rate of incidents per 10,000 aircraft movements of 0.62, which is 31% better than the target set of 0.90. The rate is slightly above last year’s rate achieved of 0.53.

1.2 Proficiency and adequacy of Staff

The proficiency of the air traffic controllers earmarked for checking was undertaken as panned. Further, during the period, more than 95% of the training of air traffic controllers, aeronautical information officers and air navigation engineers was completed. Four air navigation engineers were recruited as planned but the recruitment of twelve aeronautical information officers was delayed due to poor response to the advertisement for these trainees. The recruitment will now be done in the next financial year.

1.3 Availability of New CNS facilities

During this period, new voice recording equipment were installed at Mwanza and Zanzibar Airports. In addition, new VHF radios were installed at Arusha, Kigoma, Tanga and Dar es Salaam Airports. Further, NDB monitors were installed at Tanga, Pemba, Dodoma and Zanzibar Airports while standby power generators were installed at Arusha and Mtwara Airports.

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1.4 Operation of facilities at optimum level

All the facilities were maintained on a regular basis as programmed. Spares availability improved and an average equipment serviceability of 96% was attained. The detailed serviceability of the different facilities was as follows:

Both Navigation Aids and Surveillance equipment operated at serviceability level of 98%.

Serviceability of the VHF Area Cover averaged at 98% during the year while the serviceability of the VHF station radios was 99%.

Serviceability of the ATS DS link was 98%. With regard to the Aeronautical Fixed Telecommunication Network,

serviceability of the equipment for the year was 94% for the international circuits and 83% for the domestic circuits.

1.5 Air Traffic Services

Air Traffic Control services continued to be provided on 24 hours basis at the Area Control Centre, Dar es Salaam and Zanzibar International Airports. At Mwanza Airport services were provided for 18 hours and occasionally extended to cater for non-scheduled freight flights. Air traffic control services were re-introduced at Tanga Airport after traffic was seen to have increased. At the remaining 10 airports, services were provided during daytime.

Twenty four hours terminal radar control services continued to be provided at Dar es Salaam and this service was extended to beyond the terminal area for en-route aircraft. During this period, the number of aircraft movements handled by the Dar es Salaam Area Control Centre increased by 14.2%, from 56,645 movements handled last year to 64,670

At the thirteen airports in Tanzania where the Authority provides air traffic control services, the total aircraft movements increased by 4.5 % compared with the previous year.

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Aircraft Movement

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Figure1 : Air Traffic movements at Airports

1.6 Aeronautical Information Services

Twenty-four hour service continued to be provided at JNIA while 12 hour service was provided at Arusha, Dodoma, and Terminal One (at JNIA). Similarly, 14 hour service was provided at both Zanzibar and Mwanza Airports. During the year, the International NOTAM Office (NOF) handled 69,117foreign NOTAMs compared to 57,467 in the previous year and issued 808 NOTAMs relevant to Tanzania compared to 784 in 2006/07. Additionally, 7,424 Aeronautical Pre-Flight Information Bulletins (PIB) were provided to airlines operating at JNIA. Other targets achieved with regard to provision of AIS are as detailed hereunder:

Provision of aeronautical information on a timely basisFour amendments to the AIP were issued this year. Aerodrome Index Chart and ATS Route Structure in FIR chart were updated and reissued.

Aeronautical Fixed ServicesThe number of messages handled was 1,637,371 (International 826,131 Domestic 811,240) compared to 1,431,632 (International 830,784 Domestic 600,848)

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messages handled the previous year. Most of the international messages are transit traffic between Nairobi and Johannesburg Centres. 1.7 The Civil Aviation Training Centre

The Civil Aviation Training Centre (CATC) continued offering aviation related training courses to the Authority and the industry from within and also from neighbouring/regional countries of Botswana, Mozambique, Namibia and Uganda. For the first time, the Centre extended its services to the civil aviation authorities of Zambia and students also came from Nigeria and Liberia.

During the year, the Centre conducted a total of 29 courses involving 217 participants of which 50 were international students. Compared with the previous year, this year’s international students’ enrolment increased by 31%.

During this period, a total of 10 CATC instructors underwent special training in ICAO Aviation English Proficiency Rating, Team Resource Management, AIS Automation, Quality Management and other academic courses at undergraduate and postgraduate degree levels.

During the period, CATC became an affiliated member of the Chartered Institute of Logistics and Transport (CILT) Tanzania Chapter and four CATC instructors were registered as Technical Teachers with the National Council for Technical Education (NACTE).

2.0 SAFETY AND SECURITY REGULATION

During this period, the Authority adequately continued to maintain safety and security oversight of the civil aviation industry in Tanzania. The Authority also continued to undertake accident investigation on behalf of the Minister for Infrastructure Development.

The Tanzania Civil Aviation Regulations (TCARs) 2006 that were adopted by the EAC in June 2007 came into force in January 2008 while the harmonised Aerodromes regulations and Aviation Security regulations were promulgated and came into force in September 2007. In particular, performance in the various areas was as follows:

1.1 Safety Oversight

During the period, various activities that were planned for implementation and enforcement of the Tanzania Civil Aviation Regulations (TCARs) 2006 to ensure a compliant industry were carried out. The following figures indicate performance in the specific areas:

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1.2 Flight Operations inspections and surveillance

All operators except five renewed their certificates making the total number of certificated air operators to be 24.

Flight Operations Inspections and Surveillance

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AOC Base

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Observation Of Designated I/RExaminers

Observation Of ProficiencyTests

Simulator Approvals

Figure 2 : Flight Operations Inspections and Surveillance

2.1 Aviation English Tests/Ratings

During this period, aviation English proficiency tests and ratings were conducted for pilots and air traffic control officers licensed by the Authority.

Recertification of AOC holders

Recertification of AOC holders in accordance with new regulations commenced.

Technical Examinations

During this period, questions in the data bank for the computerised examination system for the licensing of personnel were increased and the quality improved.

Further, weekly examinations for issue and extension of personnel licenses were conducted. Results were issued within three days of the examination. With regard to issue and renewal of aviation personnel licenses and validations, the following timeframes were achieved:

(i) Licences were issue within two days of passing the examination.(ii) Renewals were effected within one day of application and;(iii) Validations were done within 2 days of passing the examination.

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2.2 Airworthiness inspection and surveillance

Four new approvals for aircraft maintenance organisations (AMOs) were issued to bring the number of AMOs to 26. 113 and 11 aircraft certificate of airworthiness were renewed and issued respectively as compared to 171 and 18 renewals and issue respectively done in the previous year.

Airworthiness Inspection and Surveillance

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Figure 3 : Airworthiness Inspections and Surveillance

2.3 Technical Examinations

During this period, 685 examinations were booked as compared to 552 of 2006/07 which was an increase of 24%. These included written and oral examinations with various flying tests for grant, renewal, conversion, extension and validation of licenses and certificates.

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Technical Examinations

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Figure 4: Technical Examinations Booked

2.4 Personnel Licenses and Certificates issuedDuring this period, 312 licenses including certificates and authorisations were issued compared to 147 issued in the previous year, being an increase of 112%.

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Aircraft Maintenance Engineer’sLicenseFlight Operations Off icer’s License

Validation Certif icates

Cabin Crew Certificates

Student Pilot Licence

ATC Licence

AVSEC Screeners Certif icates

Parachute Jumper Authorisation

Figure 5 : Licences and Certificates Issued

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2.5 Licences and certificate renewals

During this period, 507 licences, including certificates and ratings were renewed compared to 549 renewed in the previous year being a decrease of 8%.

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Airline Transport PilotLicenseCommercial Pilot License

Private Pilot License

Flight Operations Officer’sLicenseAircraft MaintenanceEngineer’s LicenseValidation Certificates

Cabin Crew Certificates

Instructor Rating

Radio Telephony

SPL

Figure 6 : Licence and Certificates Renewals

2.6 Licence endorsementsDuring this period, 279 endorsements were made on various licenses and certificates compared to 232 endorsed during the previous year, being a 20% decrease.

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Licence Endorsement

Instrument Rating

Technical Type Rating

Instructor rating

Cabin Crew

Aircraft MaintenanceEngineers License Extension

Figure 7: Licence Endorsements

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1.3 Air Navigation and Aerodromes Regulation

Aerodrome Licenses and CertificatesJulius Nyerere International Airport and Kilimanjaro International Airports continued to hold Aerodrome Licence during the period while Zanzibar International Airport continued to work for compliance to the requirements. Sixty district aerodromes were certified in compliance with the Civil Aviation (Aerodromes) Regulations, 2007.

Aerodrome, ATM and CNS Stations/facilities Surveillance

All 70 Government aerodromes were inspected and kept under surveillance as part of the safety oversight requirements. Fifteen (15) ATM and thirteen (24) CNS facility surveillances were carried out as a prelude to commissioning the facility certification process on completion of guidance/procedure manuals.

1.4 Sale of Documents

A total of 205 various documents were sold compared to 364 sold in the previous year, being a 44% decrease).

1.5 Incidences and Accidents rates

Eight accidents were reported during this period compared to five accidents reported in the previous year, which is an increase of about 60%. However, the number of incidents decreased to six from ten (10) in the previous year. Sensitisation is going on for implementation of safety management system across all safety related disciplines in the aviation industry.

Accidents and Incidences Rates

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Figure 8: Number of Accidents and Incidents rates

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1.6 Oversight of Aviation Security

During the period under review, the Authority and Tanzania Airports Authority continued to implement the Action Plan drawn up to resolve deficiencies identified during the July 2004 ICAO USAP audit. Out of the 163 corrective actions given, 119 have been accomplished, which is about 73%.

The harmonised Aviation Security Regulations were promulgated during this period. Guidance Manuals and programmes, including the Certification of Aviation Security Screener Guidance Manual and National Aviation Security Training Programme, were developed and approved for use and are continually implemented. A total of 95 Screeners certificates were validated during this period and 34 new were issued.

Five (5) airline security manuals were reviewed and recommended for improvements while security manuals for one aircraft operator and one handling agent were evaluated and approved. This was 55% of the target. The Authority has resorted to contacting the headquarters of the airlines to ensure they comply.

During this period, a total of 38 airport security audits and inspections were conducted as related to the planned 42. As well, further, five (5) security tests were carried out at JNIA and KIA out of planned 13.

2.7 Regional initiatives in the areas of safety and security

The Technical Guidance Material Task Force for the harmonised Civil Aviation Regulations (Safety) completed the review for prioritised (Critical) areas continued and is expected to be approved early next year. Prioritised Aerodrome and AVSEC guidance materials have been developed and were approved by CASSOA Board.

1.7 Training for Pilots and Aircraft Maintenance Engineers

During this period, work on the Draft Training Fund continued. Final draft of the Training Fund Regulations has been submitted to the Government and is expected to be signed and promulgated early next year.

2.0 ECONOMIC REGULATION

1.1 Air Transport Regulation

Pursuant to Section 19 of the Civil Aviation Act Cap 80(R.E), the Authority is mandated to conduct an inquiry where it considers necessary or desirable for the purpose of carrying out its functions. The Authority held its first Public Inquiry in July 2007 on the liberalization of ground handling services (passenger, aircraft and cargo handling and aviation fuel). In principle, it was agreed that these services should be liberalized but an expert opinion was required on how to do smoothly.

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Towards this, the Authority contracted IATA who commenced the study in June 2008.

Furthermore, following the promulgation of the Tanzania Ground Handling Services Regulations 2007, licensing of the ground handling service providers, including aviation fuel suppliers commenced. Subsequently, a total of twelve applications were approved in May 2008.

During the year under review, the Board held two Air Services Licensing Board Meetings (in November 2007 and in May 2008). A total of thirty three (33) applications were considered.

Status of licensing of air services operators in 2007/08 vs 2006/07

Status of Licensing of Air Service Operators

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Figure 9: Air Operators Licence renewal and New Applicants

During the financial year, the Tanzania Civil Aviation (Rates and Charges) Rules were presented to the Stakeholders in November 2007. The Rules are still undergoing approval process and were expected to be finalized during the 1 st

Quarter of 2008/09. Also, following some difficulties experienced in implementing Carriage by Air Regulations, the Authority made some amendments to the regulations.

1.2 Regional and International Cooperation in Air Transport

During 2007/08 Tanzania negotiated Bilateral Air Services Agreement (BASA) with Angola in September 2007 in Luanda, Angola and reviewed its BASA with Comoro in November 2007 in Dar es Salaam, Tanzania. Furthermore, the BASA between Tanzania and China was signed in Beijing, China in April 2008.

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1.3 Coordination of Facilitation of Air Transport

During the period under review, two (2) National Air Transport Facilitation meetings and two (2) East African Consultation Meetings were held.

1.4 Statistical Reports and Industry Performance

Statistical Reports

The annual Statistical Report for 2007 was completed and is expected to be issued in August 2008.

Industry Performance

International aircraft movements increased by 4.7% from 27,066 movements in financial year 2006/07 to 28,343 movements in the financial year 2007/08. The growth is a result of increase in weekly frequencies at Julius Nyerere International Airport by Qatar Airways (from 4 to 7) and Kenya Airways (from 22 to 26). Also, Air Uganda introduced services (3 weekly frequencies)

Domestic aircraft movements on the other hand increased by 12% from 134,080 movements in 2006/07 to 150,151 movements 2007/08.

Aircraft Movements in Financial Year 2006/07 and 2007/08

MOVEMENTS

-20,000

40,00060,000

80,000100,000120,000

140,000160,000

180,000200,000

Domestic International Total

2006/07

2007/08

Figure 10: Aircraft Movements

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The increase in domestic aircraft movements is a result of introduction of new aircraft by two major operators; Air Tanzania and Precisionair, hence being able to expand services.

With regard to passenger traffic, international passengers grew by 13.5% from 1,145,100 passengers in 2006/07 to 1,299,582 passengers in 2007/08. This is due to increased flights by Qatar Airways, Kenya Airways and introduction of services by Air Uganda during the period under review.

The share of domestic traffic dropped from 57% in year 2006/07 to 55% in 2007/08. This drop was a result of a sudden increase in international traffic, by 13.5%. Tanzania hosted the Sullivan meeting in Arusha where about 4,500 foreign delegates participated. Also, tourist arrivals increased from 662,562 tourists in 2006/07 to 767,220 tourists in 2007/08, recording a growth of 16%

On the other hand, domestic passengers increased from 1,497,943 passengers in the previous year to 1,590,953 passengers in financial year 2007/08, recording a growth of 6.2%. This is due to introduction of one additional ATR 72 and a Boeing 737-300 aircraft by Precision Air Services Ltd and introduction of two DHC – 8 aircraft and one A 320 aircraft by ATCL.

PASSENGERS

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2,500,000

3,000,000

3,500,000

Domestic International Total

2006/07

2007/08

Figure 11: Passenger Traffic

During the year under review the overall performance of the industry improved with total aircraft movements increasing from 161,146 in the financial year 2006/07 to 178,494 movements in the financial year 2007/08, recording an increase of 10.8%With regard to passenger traffic, there was an increase from 2,643,043 to 2,890,535 passengers in the same period, recording a growth of 9.4%. The growth was contributed to a large extent by growth in international passenger traffic.

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4. CORPORATE SERVICES

4.1Human Resources

The Authority continued to recruit new employees to fill vacant positions which arose due to resignation, retirement and retrenchment. During the period under review a total of 38 new staff were recruited.

With regard to occupational health and safety, Staff continued to receive medical services under the National Health Insurance and the National Social Security Health Schemes. Further, the Authority empowered its employees to obtain building plots all over the country by providing loan for acquisition of plots for residential houses. During the period under review, 87 employees secured the plots in various regions on the Mainland.

During this period, the Authority finalized the implementation of its three year training programme (2005/06 – 2008/09). For the year under review, a total of 210 were trained.

4.2Procurement

During the period under review, the Authority prepared an Annual Procurement Plan as required by Public Procurement Regulatory Authority. The following major procurements were done during this period:

(i) Purchase of five motor vehicles(ii) Construction of Boundary wall at NDB station Mbeya(iii) Purchase of IT equipment for CATC(iv) Fencing of NDB building and Antenna at Tabora station.(v) Renovation of the office building at the central workshop

For the first time, the Authority was audited by PPRA for compliance to the Public Procurement Act and its Regulations. Out of the twenty (20) public institutions audited in that group, the Authority was best rated in terms of compliance.

4.3Aviation House

Construction of the Authority’s Head Office Building (Aviation House) commenced during this period. As of 30 June 2008, the construction of the main frame structure of the basement, ground and first floors had been completed. The construction is expected to be completed in June 2009.

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