Air Tanzania Corporation (ATC) the Tanzanian flag-carrier, was established on 11 March, 1977, to operate the services suspended following the brake up of East African Airways (EAA), which was owned jointly by Tanzania, Kenya and Uganda.

In the initial moment, the airline leased one Douglas DC-9-32 5Y-ALR from Kenya Airways and one Boeing 707-331 YN-BWL (exN762TW) from Areo Nica. Regular and domesic flights followed by useing Boeings 737-200s and Fokkker F27s and adding de Havilland Twin Otters to its fleet for domestic services from Kilimanjaro.

The fleet was gradually upgraded by 2 no Boeing 737-200s, 4 no Fokker F27s and 4 no DHC 6 Twin Otter. Due to decreased traffic, two of the F27s (reg. unknown)were removed from services in 1981, but were returned two years later only to be removed again in 1984. The airline leased a single Boeing 767-200 1991/1992 from Ethiopian Airlines but this aircraft was to large and the airline had to dispose it. The carrier also leased a McDonnell Douglas MD-83, G-BNSA during 1989.

The airline has also had in its fleet two Boeing 737-33A, XA-SWO (leased from TAESA on a short term contract 1998), 5H-TAC 1999-2003 and a single Dornier 208-201 ZS-OVM leased from South African Airways.