Journal of Airline Operations and Aviation Management
Financing Structures and Capital Access Challenges for National Carriers in East Africa: The Case of Air Tanzania and Precision Air
Abstract
Air transport plays a critical role in a global economic development through trade facilitation, tourism, regional integration, and connectivity to global markets. East African’s national carriers are often considered as strategic instruments for achieving these objectives, for example in Tanzania airline industry contributes to USD 3.8 billion to the national GDP while supporting 711,000 employments, making it one of the most impactful sectors (African Pilot Magazine, 2025). Chevallier et al. (2025) state that despite the important roles that airlines play, many East African airlines are under increasing financial strain due to the COVID-19 pandemic, fluctuating demand, high operating costs that endanger many airlines' survival, and stringent regulations that require significant investments to meet compliance standards.