Tanzania's Capital Markets and Securities Authority (CMSA) CEO, Fratern Mboya stated Precision Air has already sent the application for listing approval on the Dar es Salaam Stock Exchange (All Africa, 20-Feb-2011). Its IPO now awaits the approval of the regulators, with Mr Mboya adding "We are currently going through their documents to see if they conform to the listing regulations. We will be through (with the documents) as we have received the application just a couple of days ago." The carrier reportedly hoped its offer would take off either late Feb-2011 or early Marc-2011. Precision Air seeks to raise USD25 million in the IPO, which will reduce the Kenya Airways 49% stake. The other 51% is owned by founder and chairman, Michael Shirima.
Precision Air listing awaits regulator approval
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Airline disruption: it will happen in the next decade - but no one is preparing for it
Why so unprepared? It seems inconceivable that the structure of an industry with so many artificial constraints can remain intact much past 70 years, while all around it has changed.
This decade alone has been witness to major disruptions in the travel and transportation industries. Most prominent have been in ride sharing – Uber – and in hospitality – Airbnb. Telecommunications, media and music industries have also been turned on their heads; banks and payments are in the firing line; retail generally is being rapidly transformed. There is scarcely an industry whose fundamental structure remains intact. Except the airline industry.
In all cases disrespectful startups, usually applying relatively simple but sophisticated IT solutions, have taken on legacy operations. The legacy industries under attack typically involve extensive capital investment, and are often characterised by significant, unhelpful, and highly intrusive government regulation that restricts competition.
Certainly the legacy airlines have had to deal with a new breed of low cost operations, long and short haul. But almost without exception those legacy operators are still there, fundamentally unchanged.
In terms of other industries, this is no more than fiddling around the margins. And time is running out.