Kigali 16^th June, 2016-Government has established a new company to manage the aviation industry activities as it moves to streamline and make it more vibrant and competitive.

The initiative is also aimed at cutting operational costs and ensuring smooth co-ordination of airport activities.

The Aviation, Travel and Logistics Limited (ATL Ltd) is a holding company that is fully registered and governed by Company Law. It was approved by the Cabinet of 14^th October, 2015 and will manage aviation activities including travel, logistics, ground, freight and cargo handling, as well as charter services.

The company which is supposed to have five subsidiaries will help position the country as a regional aviation hub for tourism, cargo and logistics-related activities. The subsidiary companies include; Rwandair (the national carrier), Airports Company Rwanda (ACR ltd), Rwanda Tours and Events ltd (RTE ltd), Links Logistics Rwanda (LLR ltd) and Akagera Aviation.

ATL Ltd will also co-ordinate and align investments in the industry with the national aviation strategic plan. The Rwanda Civil Aviation Authority will remain as the industry regulator under the new arrangement.

According to the Minister of State in charge of Transport, Dr. Nzahabwanimana Alexis, the new company will provide a platform that will create a one stop centre for aviation sector services and promote Rwanda as a regional aviation hub.

“This will not only improve sustainability of RwandAir’s financial performance and its market position as both passenger and cargo traffic volumes increase, but it will as well ensure Rwanda’s economy benefits from the growth of the local aviation industry generally,” he said.

So far, diversification of airline revenues, in this case RwandAir is essential because the airline has been heavily dependent on passenger revenues and government support, according to Minister of State in charge of Transport in the Ministry of Infrastructure.

The new initiative will enable the national carrier that has been spending huge amounts of money on related services to cut costs.

The Ministry of Infrastructure has revised the current law Governing Rwanda Civil aviation Authority in order separate Commercial activities normally under its responsibilities as well as the regulations purpose leaving the Authority with regulatory responsibilities only.

Rwanda has completed construction of major facilities, including the facelift of the Kigali International Airport, and is currently carrying out expansion works on the airport’s runway.

The country’s Kamembe Airport was reopened after undergoing repair and expansion works. The catering facilities at both airports have been improved.

Roles of new subsidiaries

The new company that will be dealing with ground handling operations, logistics; catering services and personnel management at all airports countrywide, is expected to make a significant investment soon.

The company will as well maximise the contribution of airport aeronautical and non-aeronautical revenues.

RwandAir is the vehicle that brings both leisure and business travelers to the country and is at the center of the tourism value chain. Investing in other related companies, RwandAir is expected to boost its position in the market as a competitive airline and will be handling passengers, cargo, technical and ground airport handling.

AIRPORTS COMPANY RWANDA (ACR LTD) will handle the airport’s commercial activities, including airport concessions and retail businesses, as well as operations air-hub businesses, engineering and infrastructure development.

RWANDA TOURS AND EVENTS LTD (RTE LTD) will build out the strategy that will nurture the development of travel management enterprise in order to maintain its position. This entity would touch prospective leisure and business travelers before and during their visit and operate an extensive network of agencies located in the major external cities such as Nairobi, Entebbe, Dar as Salam and South Africa and many other tourist destinations across RwandAir network. Through these branches, RTE will offer a number of services such as car rental, air travel (ticketing), travel insurance, foreign exchange, global tour products, cruise holidays, packaged tours, assistance with VISA applications, and accommodation across the globe

LINKS LOGISTICS RWANDA (LLR LTD)-will operate manly in freight handling and forwarding, ground freight handling (deliveries and consolidation of cargo) & ware-housing and cargo facility management. This will enhance the establishment of “general aviation and cargo businesses in the country”. The logistic company would be a key component of the larger value chain of logistics entities.

AKAGERA AVIATION Academy-will develop and manage training facilities including Aviation training school, tourism, logistics and supply training school and helicopter charter services. In addition to training local personnel, the schools are expected to attract students from the region and overseas. The idea is to build a strong training facility that would place the institute’s graduates into the group as it expands and the surplus to be able to compete successfully on the wider job market platform. The courses offered would include both flight and ground related personnel training such as pilots, cabin crew, load controllers, cargo handlers, logistics management and many others found in aviation schools around the world. Besides producing skilled staff for the group and RCAA in particular, Akagera Aviation (Training Center) is expected to operate as a profit center for the group.