In 2016, the Tanzanian government under President John Magufuli initiated a new drive to revive the national carrier by acquiring additional aircraft from Bombardier[5] and Boeing.

Air Tanzania flights flying abroad ran the risk of being impounded due to huge debts incurred by the company.

The Air Tanzania Corporation (ATC) was established on 11 March 1977 after the break-up of East African Airways (EAA), which had previously served the region.

[8] According to Andy Chande, the founding chairman of the board, Tanzania and Uganda did not receive a fair share of the former carrier's assets despite being equal partners.

[10] In May 1991, Air Tanzania began operating a Boeing 767-200ER that was leased from Ethiopian Airlines, but this aircraft proved to be too large and was returned to the lessor in February 1992.

After signing an agreement with the government, SAA in December 2002 purchased a 49 percent stake in Air Tanzania Company Limited (ATCL) for US$20 million.

[20] As the strategic partner, SAA planned to create its East African hub in Dar es Salaam to form a "Golden Triangle" between southern, eastern, and western Africa.

[23] The new Air Tanzania airline was launched on 31 March 2003, offering direct flights from Dar es Salaam to Johannesburg, Zanzibar and Kilimanjaro.

It had been hoped to launch services to Dubai, India, and Europe, but these were delayed as Air Tanzania had only had short-haul Boeing 737-200s in its fleet.

The development of Dar es Salaam as an East African hub for the SAA alliance had also not proceeded as quickly as planned.

[24] On 31 January 2005, Air Tanzania suspended one of its few regional services, Dar es Salaam to Nairobi, following intense competition from Kenya Airways on the route.

The airline, however, reaffirmed its intention to launch long-haul services within a year from Dar es Salaam to Dubai, London, Mumbai, and Muscat.

SAA, however, claimed the Tanzanian government was "not serious" for failing to release about US$30 million, which was needed to implement Air Tanzania's business strategy to reverse continued losses.

[27] After the partnership between Air Tanzania and South African Airways (SAA) was officially terminated, the government set aside US$10 million (TZS13 billion) for Air Tanzania to start using its ticket stock (number 197) instead of the stock of SAA (number 083), changing revenue systems and fuel services, preparing e-ticketing and accounts systems, using a new trademark, and clearing outstanding debts.

The introduction of the airline's new logo on a leased Airbus A320 bore the image of the imposing giraffe – Tanzania's national icon, to replace the South African Airways flag symbol.

[34][35] On 1 October 2007, the revamped Air Tanzania made its inaugural flight on the Dar es Salaam to Mwanza via Kilimanjaro route.

At the time, the other Bombardier Q300 was undergoing a heavy C-check at ATCL's hangar in Dar es Salam, stranded there due to lack of funds to import spare parts from abroad.

[44] On 29 March 2012, Aerovista leased a Boeing 737-500 to Air Tanzania to enhance the airline's service delivery in the short term.

The Auditor General said there was massive misappropriation and mismanagement of the leasing agreement, resulting in accumulated debt of US$41.4 million by October 2012, all of which is guaranteed by the government.

The money would be used to build an airline training centre and offices for Air Tanzania, buy aircraft, and engage in other development activities that would begin before the end of 2013.

[66] In August 2019, one of the Airbus 220s was seized at O R Tambo International Airport in Johannesburg due to unpaid debt owed by the Tanzanian government.

[69] The airline began its first dedicated cargo flight to Guangzhou Airport in mid 2021 as passenger service was delayed due to COVID-19 restrictions in mainland China.

Air Tanzania flights flying abroad ran the risk of being impounded due to huge debts incurred by the company.

[90] As of December 2024, Air Tanzania serves twelve international destinations including regional routes, Dubai, Guangzhou and Mumbai.

Air Tanzania also serves thirteen domestic destinations from its hub at Dar es Salaam's Julius Nyerere International Airport.