{"id":19027,"date":"2018-06-02T04:58:34","date_gmt":"2018-06-02T04:58:34","guid":{"rendered":"http:\/\/newsroom247.com.ng\/?p=19027"},"modified":"2018-06-02T04:58:34","modified_gmt":"2018-06-02T04:58:34","slug":"why-nigerian-airways-is-unnecessary-a-case-study-of-how-rwandair-is-bankrupting-rwanda-david-himbara","status":"publish","type":"post","link":"http:\/\/newsroom247.com.ng\/?p=19027","title":{"rendered":"WHY NIGERIAN AIRWAYS IS UNNECESSARY &#8211; A CASE STUDY OF HOW RWANDAIR IS BANKRUPTING RWANDA &#8211; David Himbara"},"content":{"rendered":"<p><code><script async src=\"\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js\"><\/script><br \/>\n<!-- www.deltanewsroom.com --><br \/>\n<ins class=\"adsbygoogle\" style=\"display: block;\" data-ad-client=\"ca-pub-2163942495525027\" data-ad-slot=\"1411897411\" data-ad-format=\"auto\"><\/ins><br \/>\n<script>\n(adsbygoogle = window.adsbygoogle || []).push({});\n<\/script><\/code><\/p>\n<h2 id=\"e847\" class=\"graf graf--h4 graf-after--h3 graf--subtitle\">Open Letter To Presidents Yoweri Museveni And John\u00a0Magufuli<\/h2>\n<p id=\"3c82\" class=\"graf graf--p graf-after--h3\">It is widely reported that you want to establish and expand your national airlines. Apparently, Uganda is set to relaunch Uganda Airlines in November 2018 which ceased to operate in 2001. My unsolicited advice to you is that you should seriously consider other options before you invest heavily in a national airline. Building a successful airline is easier said than done.<\/p>\n<p id=\"9c6e\" class=\"graf graf--p graf-after--p\">\n<p><iframe loading=\"lazy\" src=\"https:\/\/www.alternativeadvert.com\/show.php?z=30&amp;pl=16338&amp;ad_type=59&amp;rl=180\" width=\"300\" height=\"250\" frameborder=\"0\" marginwidth=\"0\" marginheight=\"0\" scrolling=\"no\"><\/iframe><\/p>\n<h3 id=\"4f0e\" class=\"graf graf--h3 graf-after--p\">On paper, RwandAir looks impressive<\/h3>\n<figure id=\"5876\" class=\"graf graf--figure graf-after--h3\">\n<div class=\"aspectRatioPlaceholder is-locked\">\n<div class=\"aspectRatioPlaceholder-fill\"><\/div>\n<div class=\"progressiveMedia js-progressiveMedia graf-image is-canvasLoaded is-imageLoaded\" data-image-id=\"1*cbB1r3Kyh6kGTfr_3ynWTg@2x.jpeg\" data-width=\"1097\" data-height=\"759\" data-action=\"zoom\" data-action-value=\"1*cbB1r3Kyh6kGTfr_3ynWTg@2x.jpeg\" data-scroll=\"native\"><\/div>\n<\/div>\n<\/figure>\n<figure id=\"5876\" class=\"graf graf--figure graf-after--h3\">\n<div class=\"aspectRatioPlaceholder is-locked\">\n<div class=\"progressiveMedia js-progressiveMedia graf-image is-canvasLoaded is-imageLoaded\" data-image-id=\"1*cbB1r3Kyh6kGTfr_3ynWTg@2x.jpeg\" data-width=\"1097\" data-height=\"759\" data-action=\"zoom\" data-action-value=\"1*cbB1r3Kyh6kGTfr_3ynWTg@2x.jpeg\" data-scroll=\"native\"><\/div>\n<\/div>\n<\/figure>\n<h3 id=\"3acb\" class=\"graf graf--h3 graf-after--figure\">Excellencies:<\/h3>\n<p id=\"725c\" class=\"graf graf--p graf-after--h3\">It may be tempting to follow Rwanda\u2019s example of building what appears to be a successful airline. Indeed, RwandAir looks impressive from a distance.<\/p>\n<p id=\"9c6e\" class=\"graf graf--p graf-after--p\">RwandAir began operations in 2002 as the new national carrier under the name Rwandair Express. In 2009, the airline\u2019s name was changed to RwandAir. Its fleet currently comprises:<\/p>\n<ul class=\"postList\">\n<li id=\"2a89\" class=\"graf graf--li graf-after--p\">Two Airbus A330<\/li>\n<li id=\"5b59\" class=\"graf graf--li graf-after--li\">Four Boeing 737\u2013800<\/li>\n<li id=\"4677\" class=\"graf graf--li graf-after--li\">Two Boeing 737\u2013700<\/li>\n<li id=\"d0ce\" class=\"graf graf--li graf-after--li\">Two CRJ900<\/li>\n<li id=\"dd7c\" class=\"graf graf--li graf-after--li\">Two Bombardier Q-400<\/li>\n<\/ul>\n<p id=\"3c65\" class=\"graf graf--p graf-after--li\">The airline has considerably expanded its operations. RwandAir serves twenty-two cities in western, central, eastern and southern Africa, the Middle East, Asia and Europe. The airline has also applied for landing rights in the United States at JFK International Airport, New York.<\/p>\n<figure id=\"a0d0\" class=\"graf graf--figure graf-after--p\">\n<div class=\"aspectRatioPlaceholder is-locked\">\n<div class=\"aspectRatioPlaceholder-fill\"><\/div>\n<div class=\"progressiveMedia js-progressiveMedia graf-image is-canvasLoaded is-imageLoaded\" data-image-id=\"1*-VZpW7vYBkS5yJDEeK0-QA@2x.jpeg\" data-width=\"906\" data-height=\"1125\" data-action=\"zoom\" data-action-value=\"1*-VZpW7vYBkS5yJDEeK0-QA@2x.jpeg\" data-scroll=\"native\"><\/div>\n<\/div>\n<\/figure>\n<figure id=\"a0d0\" class=\"graf graf--figure graf-after--p\">\n<div class=\"aspectRatioPlaceholder is-locked\">\n<div class=\"progressiveMedia js-progressiveMedia graf-image is-canvasLoaded is-imageLoaded\" data-image-id=\"1*-VZpW7vYBkS5yJDEeK0-QA@2x.jpeg\" data-width=\"906\" data-height=\"1125\" data-action=\"zoom\" data-action-value=\"1*-VZpW7vYBkS5yJDEeK0-QA@2x.jpeg\" data-scroll=\"native\"><img decoding=\"async\" class=\"progressiveMedia-image js-progressiveMedia-image\" src=\"https:\/\/cdn-images-1.medium.com\/max\/1600\/1*-VZpW7vYBkS5yJDEeK0-QA@2x.jpeg\" data-src=\"https:\/\/cdn-images-1.medium.com\/max\/1600\/1*-VZpW7vYBkS5yJDEeK0-QA@2x.jpeg\" \/><\/div>\n<\/div>\n<\/figure>\n<p id=\"fd1e\" class=\"graf graf--p graf-after--figure\">By 2016, RwandAir\u2019s total assets stood at US$238 Million. RwandAir\u2019s fleet, operations across 22 destinations, and total assets all seem impressive. But unfortunately there is a devastatingly gloomy side to RwandAir.<\/p>\n<h3 id=\"6650\" class=\"graf graf--h3 graf-after--p\">But RwandAir has a gloomy\u00a0side<\/h3>\n<p id=\"2431\" class=\"graf graf--p graf-after--h3\">Excellencies, a closer look at RwandAir\u2019s state of affairs shows us the real situation. RwandAir\u2019s financial statements from 2013 to 2016 reveal how the airline is bankrupting Rwanda. The circumstances of RwandAir may be summed as follows:<\/p>\n<ul class=\"postList\">\n<li id=\"b148\" class=\"graf graf--li graf-after--p\">Total assets\u200a\u2014\u200aUS$238 Million by 2016;<\/li>\n<li id=\"2cc6\" class=\"graf graf--li graf-after--li\">Accumulated losses between 2013 and 2016\u200a\u2014\u200aUS$222 Million;<\/li>\n<li id=\"a33e\" class=\"graf graf--li graf-after--li\">Accumulated grants from the government between 2013 and 2016\u200a\u2014\u200aUS$192 Million;<\/li>\n<li id=\"581d\" class=\"graf graf--li graf-after--li\">Accumulated government loans\u200a\u2014\u200aUS$238 Million;<\/li>\n<li id=\"8e96\" class=\"graf graf--li graf-after--li\">Accumulated loans from outside government sources\u200a\u2014\u200aUS$100.6 Million.<\/li>\n<\/ul>\n<p id=\"e1fc\" class=\"graf graf--p graf-after--li\">Let us look more closely at RwandAir\u2019s realities from 2013 to 2016.<\/p>\n<figure id=\"3d3a\" class=\"graf graf--figure graf-after--p\">\n<div class=\"aspectRatioPlaceholder is-locked\">\n<div class=\"aspectRatioPlaceholder-fill\"><\/div>\n<div class=\"progressiveMedia js-progressiveMedia graf-image is-canvasLoaded is-imageLoaded\" data-image-id=\"1*K3hpqaULhkXW2kdVOA6_Yw@2x.jpeg\" data-width=\"1100\" data-height=\"995\" data-action=\"zoom\" data-action-value=\"1*K3hpqaULhkXW2kdVOA6_Yw@2x.jpeg\" data-scroll=\"native\"><\/div>\n<\/div>\n<\/figure>\n<figure id=\"3d3a\" class=\"graf graf--figure graf-after--p\">\n<div class=\"aspectRatioPlaceholder is-locked\">\n<div class=\"progressiveMedia js-progressiveMedia graf-image is-canvasLoaded is-imageLoaded\" data-image-id=\"1*K3hpqaULhkXW2kdVOA6_Yw@2x.jpeg\" data-width=\"1100\" data-height=\"995\" data-action=\"zoom\" data-action-value=\"1*K3hpqaULhkXW2kdVOA6_Yw@2x.jpeg\" data-scroll=\"native\"><img decoding=\"async\" class=\"progressiveMedia-image js-progressiveMedia-image\" src=\"https:\/\/cdn-images-1.medium.com\/max\/1600\/1*K3hpqaULhkXW2kdVOA6_Yw@2x.jpeg\" data-src=\"https:\/\/cdn-images-1.medium.com\/max\/1600\/1*K3hpqaULhkXW2kdVOA6_Yw@2x.jpeg\" \/><\/div>\n<\/div>\n<\/figure>\n<ul class=\"postList\">\n<li id=\"23a1\" class=\"graf graf--li graf-after--figure\">In 2013, RwandAir made a loss of US$48.2 Million. The government stepped in with a grant of US$54 Million.<\/li>\n<\/ul>\n<figure id=\"8abb\" class=\"graf graf--figure graf-after--li\">\n<div class=\"aspectRatioPlaceholder is-locked\">\n<div class=\"aspectRatioPlaceholder-fill\"><\/div>\n<div class=\"progressiveMedia js-progressiveMedia graf-image is-canvasLoaded is-imageLoaded\" data-image-id=\"1*J5Xt4mzFjEZ_HBx0CczsiQ@2x.jpeg\" data-width=\"768\" data-height=\"779\" data-action=\"zoom\" data-action-value=\"1*J5Xt4mzFjEZ_HBx0CczsiQ@2x.jpeg\" data-scroll=\"native\"><\/div>\n<\/div>\n<\/figure>\n<figure id=\"8abb\" class=\"graf graf--figure graf-after--li\">\n<div class=\"aspectRatioPlaceholder is-locked\">\n<div class=\"progressiveMedia js-progressiveMedia graf-image is-canvasLoaded is-imageLoaded\" data-image-id=\"1*J5Xt4mzFjEZ_HBx0CczsiQ@2x.jpeg\" data-width=\"768\" data-height=\"779\" data-action=\"zoom\" data-action-value=\"1*J5Xt4mzFjEZ_HBx0CczsiQ@2x.jpeg\" data-scroll=\"native\"><img decoding=\"async\" class=\"progressiveMedia-image js-progressiveMedia-image\" src=\"https:\/\/cdn-images-1.medium.com\/max\/1600\/1*J5Xt4mzFjEZ_HBx0CczsiQ@2x.jpeg\" data-src=\"https:\/\/cdn-images-1.medium.com\/max\/1600\/1*J5Xt4mzFjEZ_HBx0CczsiQ@2x.jpeg\" \/><\/div>\n<\/div>\n<\/figure>\n<ul class=\"postList\">\n<li id=\"23fc\" class=\"graf graf--li graf-after--figure\">In 2014, RwandAir made a loss of US$65.8 Million. The government had to pump into the money-losing airline US$28.4 Million. In addition, RwandAir acquired loans amounting to US$88.7 Million in 2013, and US$148.8 Million in 2014.<\/li>\n<li id=\"dad7\" class=\"graf graf--li graf-after--li\">In 2015, RwandAir made a loss of US$53.4 Million. The government had to pump into the money-losing airline US$56.2 Million.<\/li>\n<\/ul>\n<figure id=\"4989\" class=\"graf graf--figure graf-after--li\">\n<div class=\"aspectRatioPlaceholder is-locked\">\n<div class=\"aspectRatioPlaceholder-fill\"><\/div>\n<div class=\"progressiveMedia js-progressiveMedia graf-image is-canvasLoaded is-imageLoaded\" data-image-id=\"1*iPaARl3BvNz-CRF2rFN9yw@2x.jpeg\" data-width=\"839\" data-height=\"1174\" data-action=\"zoom\" data-action-value=\"1*iPaARl3BvNz-CRF2rFN9yw@2x.jpeg\" data-scroll=\"native\"><\/div>\n<\/div>\n<\/figure>\n<figure id=\"4989\" class=\"graf graf--figure graf-after--li\">\n<div class=\"aspectRatioPlaceholder is-locked\">\n<div class=\"progressiveMedia js-progressiveMedia graf-image is-canvasLoaded is-imageLoaded\" data-image-id=\"1*iPaARl3BvNz-CRF2rFN9yw@2x.jpeg\" data-width=\"839\" data-height=\"1174\" data-action=\"zoom\" data-action-value=\"1*iPaARl3BvNz-CRF2rFN9yw@2x.jpeg\" data-scroll=\"native\"><img decoding=\"async\" class=\"progressiveMedia-image js-progressiveMedia-image\" src=\"https:\/\/cdn-images-1.medium.com\/max\/1600\/1*iPaARl3BvNz-CRF2rFN9yw@2x.jpeg\" data-src=\"https:\/\/cdn-images-1.medium.com\/max\/1600\/1*iPaARl3BvNz-CRF2rFN9yw@2x.jpeg\" \/><\/div>\n<\/div><figcaption class=\"imageCaption\">In addition, RwandAir acquired loans amounting to US$88.7 Million in 2013, and US$148.8 Million in\u00a02014.<\/figcaption><\/figure>\n<ul class=\"postList\">\n<li id=\"b110\" class=\"graf graf--li graf-after--figure\">In 2016, RwandAir made a loss of US$54.8 Million. The government pumped in US$53.8 Million.<\/li>\n<\/ul>\n<figure id=\"d758\" class=\"graf graf--figure graf-after--li\">\n<div class=\"aspectRatioPlaceholder is-locked\">\n<div class=\"aspectRatioPlaceholder-fill\"><\/div>\n<div class=\"progressiveMedia js-progressiveMedia graf-image is-canvasLoaded is-imageLoaded\" data-image-id=\"1*DL1dAwAQ1OS2QHR3cSGY1Q@2x.jpeg\" data-width=\"868\" data-height=\"880\" data-action=\"zoom\" data-action-value=\"1*DL1dAwAQ1OS2QHR3cSGY1Q@2x.jpeg\" data-scroll=\"native\"><\/div>\n<\/div>\n<\/figure>\n<figure id=\"d758\" class=\"graf graf--figure graf-after--li\">\n<div class=\"aspectRatioPlaceholder is-locked\">\n<div class=\"progressiveMedia js-progressiveMedia graf-image is-canvasLoaded is-imageLoaded\" data-image-id=\"1*DL1dAwAQ1OS2QHR3cSGY1Q@2x.jpeg\" data-width=\"868\" data-height=\"880\" data-action=\"zoom\" data-action-value=\"1*DL1dAwAQ1OS2QHR3cSGY1Q@2x.jpeg\" data-scroll=\"native\"><img decoding=\"async\" class=\"progressiveMedia-image js-progressiveMedia-image\" src=\"https:\/\/cdn-images-1.medium.com\/max\/1600\/1*DL1dAwAQ1OS2QHR3cSGY1Q@2x.jpeg\" data-src=\"https:\/\/cdn-images-1.medium.com\/max\/1600\/1*DL1dAwAQ1OS2QHR3cSGY1Q@2x.jpeg\" \/><\/div>\n<\/div>\n<\/figure>\n<h3 id=\"f950\" class=\"graf graf--h3 graf-after--figure\">RwandAir is bankrupting Rwanda<\/h3>\n<p id=\"c940\" class=\"graf graf--p graf-after--h3\"><span class=\"markup--quote markup--p-quote is-other\" data-creator-ids=\"f9214fa0eab1 anon\">The overall picture of RwandAir is ugly. By 2016, RwandAir had accumulated US$222 Million in losses. The government pumped in US$192 Million in grants. Additionally, the government gave the airline US$238 Million in loans, while loans from outside government were US$100 Million. This means that Rwanda government kept RwandAir afloat with US$430 Million in loans and grants between 2013 and 2016. When the US$100 Million external loan is added, US$530 Million was pumped into RwandAir between 2013 and 2016.<\/span> Remember that Rwanda is a small economy with a GDP of US$8.3 Billion and a per capita income of US$702.<\/p>\n<h3 id=\"8b10\" class=\"graf graf--h3 graf-after--p\">Presidents Museveni and Magufuli, do you really want to travel this\u00a0route?<\/h3>\n<p id=\"be03\" class=\"graf graf--p graf-after--h3 graf--trailing\">Excellencies, your countries are well-served by major global airlines. International and regional airlines connect the two countries to key destinations. What is it that national airlines will perform\u200a\u2014\u200awhich other airlines cannot do? Or is this about a desire for creating a prestigious symbol to project Uganda and Tanzania, internationally? Be that as it may, your Excellencies, do not fall into RwandAir\u2019s trap. The airline is a disastrous experiment\u200a\u2014\u200ait is no model for any country with a clear vision and people-centered priorities.<\/p>\n<p>David Himbara &#8211; Educator, Author &amp; Professor of International Development, based in Toronto, Canada<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p><a href=\"http:\/\/newsroom247.com.ng\/wp-content\/uploads\/2018\/05\/Sheriff.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-18603\" src=\"http:\/\/newsroom247.com.ng\/wp-content\/uploads\/2018\/05\/Sheriff.jpg\" alt=\"\" width=\"688\" height=\"196\" srcset=\"http:\/\/newsroom247.com.ng\/wp-content\/uploads\/2018\/05\/Sheriff.jpg 1080w, http:\/\/newsroom247.com.ng\/wp-content\/uploads\/2018\/05\/Sheriff-300x86.jpg 300w, http:\/\/newsroom247.com.ng\/wp-content\/uploads\/2018\/05\/Sheriff-768x219.jpg 768w, http:\/\/newsroom247.com.ng\/wp-content\/uploads\/2018\/05\/Sheriff-1024x292.jpg 1024w\" sizes=\"auto, (max-width: 688px) 100vw, 688px\" \/><\/a><\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Open Letter To Presidents Yoweri Museveni And John\u00a0Magufuli It is widely reported that you want to establish and expand your national airlines. Apparently, Uganda is set to relaunch Uganda Airlines in November 2018 which ceased to operate in 2001. My unsolicited advice to you is that you should seriously consider other options before you invest [&hellip;]<\/p>\n","protected":false},"author":6,"featured_media":19028,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"ngg_post_thumbnail":0,"spay_email":"","footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false},"categories":[23,4],"tags":[1451,4717,4716,1302],"class_list":["post-19027","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-international-news","category-national","tag-john-magufuli","tag-nigerian-airways","tag-rwandair","tag-yoweri-museveni"],"jetpack_featured_media_url":"http:\/\/newsroom247.com.ng\/wp-content\/uploads\/2018\/06\/NIGERIAN-AIRWAYS.jpg","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p4oswh-4WT","_links":{"self":[{"href":"http:\/\/newsroom247.com.ng\/index.php?rest_route=\/wp\/v2\/posts\/19027","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/newsroom247.com.ng\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/newsroom247.com.ng\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/newsroom247.com.ng\/index.php?rest_route=\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"http:\/\/newsroom247.com.ng\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=19027"}],"version-history":[{"count":1,"href":"http:\/\/newsroom247.com.ng\/index.php?rest_route=\/wp\/v2\/posts\/19027\/revisions"}],"predecessor-version":[{"id":19029,"href":"http:\/\/newsroom247.com.ng\/index.php?rest_route=\/wp\/v2\/posts\/19027\/revisions\/19029"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/newsroom247.com.ng\/index.php?rest_route=\/wp\/v2\/media\/19028"}],"wp:attachment":[{"href":"http:\/\/newsroom247.com.ng\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=19027"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/newsroom247.com.ng\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=19027"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/newsroom247.com.ng\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=19027"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}