E114M SPENT ON REPAIRING OLD AIRCRAFT

MBABANE – The taxpayer has expended E189.8 million (US$10.2 million) on repairs and maintenance of aircrafts that are utilised by Eswatini Ai.
This is specifically the Embraer ERJ 145s.

These two aircrafts, procured in 2022 by Royal Eswatini National Airways Corporation (RENAC), were not new acquisitions.
They were previously owned by Air France – Hop, a full-service regional airline operating within France. Both aircraft, models of the Embraer ERJ-145, each possess a carrying capacity of 50 passengers. Their combined acquisition price, hailed then as bargain, was US$3.1 million, approximately E57 million.

They were purchased in 2022 and Eswatini Air’s inaugural flight was conducted on March 26, 2023, departing from King Mswati III International Airport and arriving at OR Tambo International Airport.
Reads a report from the Ministry of Public Works and Transport: “During the reporting period the Corporation successfully performed the required scheduled and non-scheduled maintenance for the Corporation’s aircraft.
maintenance

“It is common cause that the maintenance of the aircraft takes a huge portion of the budget and to reduce the costs, the airline has insourced some of the maintenance.”
“The Corporation continues to utilise Matsapha International Airport for the utilisation of the hangar for maintenance events.”
It is mentioned in the government report that the year-to-date expenditure for repairs and maintenance was E114.8 million.

In terms of cost projections, the ministry says the taxpayer may spend E75 million more on repairs and maintenance. This figure will increase the maintenance and repair costs to E189.8 million. Cost projections to March 2025, according to the ministry, are reflected as follows:
l     Repairs and maintenance of aircraft amounting to E75 million. This amount includes general maintenance, replacement of aircraft seats.
l     Flight operation costs, an expenditure of E23 million is expected to be incurred towards ground handling and fuel costs,
l     Insurance cost of the aircraft amounting to E6.1 million is expected to be incurred in the last quarter of the financial year.
l     Salaries related costs are anticipated to be E21 million from Jan 2025 to March 2025.
l     An amount of E32 million is expected to be used to support the scheduled operation in January to March 2025.
l     Financing costs amounting to E4.7 million.

The aircrafts obtained by Eswatini were pre-owned and registered as 3DC-EAA and 3DC-EAB. The first aircraft, 3DC-EAA, was manufactured in 1998, rendering it approximately 27 years old, while the second, 3DC-EAB, was produced in 1999, making it about 26 years old. Both aircraft are presently active within Eswatini Air’s fleet. The taxpayer is spending a lot of money on the repairs of the ageing birds.
As of March 1, 2025, flight data corroborates that these aircraft persist in operating scheduled flights. For instance, Eswatini Air flight SZL106, employing one of these aircraft, completed a journey from Johannesburg’s O.R. Tambo International Airport to King Mswati III International Airport on February 28, 2025. Similarly, flight SZL202 operated from Durban’s King Shaka International Airport to King Mswati III International Airport on the same date.

operational

This operational activity affirms that both aircraft remain in service.
Recent information sourced from the Ministry of Public Works and Transport reveals that repairs and maintenance of these aircraft have totalled E75 million.
This situation prompts concerns regarding whether the country should persist in maintaining aging planes or instead invest in acquiring newer, more cost-effective aircraft.
With maintenance costs accumulating and the airline struggling to achieve profitability, the debate surrounding whether to continue repairing the second-hand Embraer ERJ-145 jets or procure replacements has intensified.
According to aviation experts, procuring a brand-new Embraer ERJ-145 would incur an approximate cost of US$21 million, the equivalent of E378 million.
However, given that this model is no longer in production, securing a new unit may prove infeasible. Instead, Embraer offers the E-Jet series, which includes models such as the E175 and E190-E2.
The E175 carries a list price of approximately US$45.7 million (E822 million), while the E190-E2 is valued at around US$37 million (E660 million). These newer models offer advanced features, enhanced fuel efficiency, and superior passenger comfort compared to the ERJ-145.

Pre-owned ERJ-145 aircraft are available within the market for approximately US$2.5 million (E45 million), contingent upon their age and condition.
This price disparity has instigated discussions concerning whether it would be more financially prudent for Eswatini to procure a newer second-hand aircraft rather than continually invest in maintenance.

unsustainable

The two aircraft, acquired second-hand from Hop Airlines, were intended to support the country’s initiative to establish a national airline. However, merely a few years into their service, the financial burden of maintaining their operational status is proving unsustainable.
Government financial records indicate that in the last financial quarter alone, E75 million was expended on maintenance, encompassing the replacement of aircraft seats and the conduction of an A-check on one of the planes.
This expenditure forms part of a larger year-to-date maintenance bill of E114.8 million, which continues to escalate.
Despite the substantial sums expended on maintaining the aircraft’s operational status, Eswatini Air continues to encounter financial difficulties.
 The airline’s year-to-date revenue stood at E50 million at the conclusion of the third quarter, falling short of its projected budget of E54 million. One of the principal challenges it faces is a low passenger load factor, currently at 37 percent—an improvement from last year’s 32 percent but still significantly below the industry average required for profitability.
Exacerbating the airline’s financial woes is the government’s role as a major customer.

subsidising

The revenue for the agency responsible for ticket sales originates from government-purchased tickets for official travel, effectively meaning that taxpayers are effectively subsidising the majority of the airline’s operations.
The agency is called the Royal Eswatini Travel Agency (RETA).

Such a situation, therefore, raises questions regarding the airline’s sustainability and amplifies its operational and financial risk, particularly if government travel expenditures are reduced in the future.
While the government maintains that Eswatini Air remains a critical national asset, critics contend that the financial burden it imposes on taxpayers is unsustainable.
Speaking in Parliament last year, Minister of Finance Neal Rijkenberg conceded that the airline was struggling to achieve financial viability and would necessitate continuous government support for the foreseeable future.
He acknowledged that while establishing a national carrier was essential for Eswatini’s connectivity, the financial returns had thus far been disappointing.

profitability

“The airline has not yet attained the level of profitability we had anticipated. It will require time before we can assert that it is fully self-sustaining, and until then, government support will be indispensable,” Rijkenberg stated at the time.
His remarks underscore the challenging balance the government must maintain between sustaining a national airline and effectively managing public finances.
The costs of sustaining Eswatini Air’s operational status continue to accrue. The airline’s total expenditure for the year amounted to E439.6 million, significantly exceeding its budgeted E343.7 million, representing a 28 per cent overrun. Key expense categories include fuel, salaries, landing fees, and aircraft maintenance. Insurance costs for the airline reached E22.1 million for the year, while fuel expenses amounted to E76.8 million. Salaries and wages for flight crew and other personnel reached E86 million.
Flight operations expenses, encompassing catering, fuel, and landing fees, stood at E124.3 million, further straining the airline’s finances.

expenditures

Projections for the final three months of the financial year indicate that expenditures will continue to escalate. An additional E75 million is anticipated to be spent on repairs and maintenance, including replacing aircraft seats and conducting another A-check on one of the planes.
Flight operation costs are projected to reach E23 million, while insurance expenses will total E6.1 million. Salaries and wages are expected to amount to E21 million, while E32 million has been earmarked to support scheduled operations. In addition, the airline is expected to incur financing costs of E4.7 million.
It is understood that one of the principal financial challenges confronting Eswatini Air is the substantial outstanding government debt for air tickets.
With the airline heavily reliant on government-purchased seats, any delays in payment place further strain on its already precarious cash flow. Compounding the issue is the elevated cost of aviation personnel and mandatory training, which remain significant financial burdens.
Critics posit that instead of continually investing in repairs, the government should contemplate procuring a newer, well-maintained aircraft that would mitigate maintenance costs over time.

solution

Aviation analysts emphasise that while purchasing a brand-new aircraft may be beyond reach due to budgetary constraints, investing in a newer second-hand plane could offer a more sustainable solution.
A pre-owned Embraer ERJ-145 priced at approximatelyE45 million would represent a fraction of the E189.8 million already expended on maintenance and could potentially operate more efficiently with fewer repair requirements.
Economists say the financial predicament of Eswatini Air raises broader inquiries regarding the viability of government-funded airlines in small economies.
Many national carriers in similarly sized countries have struggled to maintain profitability, often necessitating government bailouts to continue operating.
With Eswatini Air’s expenses far exceeding its revenue, the government faces a difficult decision on whether to continue subsidizing an airline that has yet to achieve break-even status or explore alternative strategies that would reduce costs and enhance financial sustainability.
As the debate persists, it remains to be seen whether the government will undertake decisive action to address Eswatini Air’s escalating financial concerns.

While proponents argue that a national airline is indispensable for the country’s economic growth and connectivity, opponents insist that the continuous investment in aircraft maintenance represents a drain on public resources.
Aviation officers say airlines typically invest in regular maintenance to ensure safety, reliability, and efficiency, which is a substantial part of their operational expenses.
They say maintenance costs include routine checks, repairs, overhauls, and compliance with regulatory requirements. Additionally, they also mention that airlines with older fleets might spend more on maintenance compared to those with newer aircraft.

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