Privatisation of Rwandair hits snag

The privatisation of Rwandair has been stalled after Brussels Airline, which had emerged as the highest bidder, failed to submit its financial proposal.
Rwandair plane at Kigali International Airport. The embattled airline’s privatization has been postponed. (File photo)
Rwandair plane at Kigali International Airport. The embattled airline’s privatization has been postponed. (File photo)

The privatisation of Rwandair has been stalled after Brussels Airline, which had emerged as the highest bidder, failed to submit its financial proposal.

By not submitting the proposal, Brussels Airlines breached Article 7 and 8 of the request for proposal before any bid is awarded.

The business plan was not translated in monetary terms. Government was selling off 54.95 per cent shares in Rwandair-Express to a private player.

Meridiana, an Italian-based company, had earlier expressed interest and later pulled out of the bid.

Gerald Zilimwabagabo, chairman of Rwandair-Express, said they are now considering partnering with Lonrho Aviation, a UK-based company. Government is considering selling 49 per cent shares to Lonrho.

Lonrho is expected to bring their technical expertise, finance and aircrafts next month.

“The talks are quite in advanced stages,” he said.
The plan to have a partner, according to Zilimwabagabo, will help the airline improve services, route network and management.

“Like any other airline across the world, it’s not surprising that Rwandair might make losses, but we are set on a recovery path not only in finance but in services and route network,” he said.

The chairman is optimistic that after the repositioning, Rwandair will be able to attract new potential investors.

Ends

 

Have Your SayLeave a comment