destroying all three aircraft. The incident left the company with only a single BAe 146, which had been non-operational for a year because of technical problems, forcing the airline to lease an aircraft to operate scheduled flights. It was revealed that Phatswe had been grounded for medical reasons, was refused reinstatement, and was regrounded until February 2000. Privatisation attempts Because the airline had been regularly posting financial losses, which in part is due to overstaffing, the operation of an ageing, fuel-inefficient fleet, increasing operational costs, inadequate management expertise and an inability to retain and attract qualified pilots, the government earmarked Air Botswana to be the first of the parastatals to be privatised. The costs which the airline incurs, in conjunction with low quality of service, poor marketing, high insurance premiums and a slow uptake on new technology, has restricted growth potential for the airline. However, in the five years to 2003, the government had not had to subsidise Air Botswana, and in the previous six years had made a profit. The privatisation process began on 19 April 2000, when the government signed a consultancy agreement with World Bank-affiliated International Finance Corporation, which saw IFC being appointed as the government's main adviser in the privatisation process. In 2003, the government attempted to privatise the airline, with Air Mauritius and Comair put forward as strategic partners. The process would have seen the winning bidder receiving a 45% stake in Air Botswana, with the government holding a further 45%, and employees holding the remaining 10%. It was planned that once the airline has firmed its position under new ownership, it would be listed on the Botswana Stock Exchange. Air Mauritius withdrew from the process in September 2003, citing the downturn in global air travel markets since the 11 September 2001 terrorist attacks in New York City. Comair withdrew in December 2003, due in part to increased competition by low-cost airlines in the South African market. The government suspended the search for a strategic partner in February 2004. Following a P300 million loss in the first quarter of 2006, the Sunday Standard reported that the government hurriedly began efforts to privatise the airline before it became insolvent. The newspaper also revealed that the airline defaulted on its US$42,000 – 45,000 payments for the lease of the BAe 146 from April — July 2006, and that the arrears were paid once the airline's Secretary and