The carrier’s managing director Ladislaus Matindi told Reuters arrangements had been made for passengers to resume their journey on another flight.
The move comes barely two months after Air Tanzania opened its service to South Africa.
Tanzania’s President John Magufuli has led attempts to revive the state-owned airline, hoping to boost tourism and turn the country into a major transportation hub.
It had just one plane when the president was elected in 2015. Since then, millions of dollars have been spent on the purchase of eight new aircraft.
But the carrier is battling several multi-million dollar lawsuits with its former suppliers.
This is also not the first time Air Tanzania has had a plane seized. In 2017, Canadian construction firm Stirling Civil Engineering seized the airline’s new Bombardier Q400 plane in Canada over a $38m lawsuit.
The Q400 was released in March 2018 after Tanzania’s prime minister and attorney general negotiated its release. No details were given about the terms of the settlement.