Currently, Zambia is being serviced by more than ten foreign carriers transporting 1,500,000 passengers per annum and accruing in excess of approximately US$1.5 billion through ticket sales per annum.
Mr. Mushimba says once the national airline restarts; Zambia has the potential to earn up to 50 per cent of the US$1.5 billion revenue generated from air ticket sales.
Mr. Mushimba says the aviation industry is one of the biggest industries in the country generating in excess of US$1.5 billion in revenue from air ticket sales per annum.
He says Government through the Industrial Development Corporation (IDC) will hold 55 per cent in Zambia Airways (2014) Limited and 45 per cent by Ethiopian Airlines, the strategic partner.
Mr. Mushimba says the two strategic partners will be required to make a shareholders contribution to the national airlines equal to US$30 million for the first year to cover immediate start-up costs.
He says Government’s equity contribution at 55 per cent will be US$16.5 million to be allocated to Zambia Airways (2014) Limited. Ethiopian Airlines will contribute US$13.5 million.
Malawians haven’t seen the $500 million under a similar venture will Ethiopian Airlines. I thought it was only Mutati who lies to us about debt and IMF. You are all of the same feathers. Lead with honesty and integrity like Mulusa. Always tell the truth.
Some jokes are so hard to laugh at….
Mashimba is just dull…he will cost the nation irreparable damage
Obatala
We must find a way of making leaders accountable not just for outright crimes like theft and corruption but also losses we incur as a nation for this kind of warped up thinking.Honestly PF has failed basic leadership now they want to try running an airline?They have no money to pay farmers even the low prices they themselves chose,failed to pay CBU students opting to beat them up whilst they refused to pay back monies as ordered by the Concourt.Very soon the real reason behind the excitement to start an aireline will be known and as usual it will be for all the wrong reasons.
This is one of the dullest ministers after lusambo Kampyongo and freedom even the names say it all
Yes with a President who travels like a foo.l About $ 500 million or more of revenue to be retained in the economy once Zambia Airways launches. So you are reviving the National courier because of Koswe’s travels? This is a chipante pante govt. Just tell Koswe to stay home and wait to go to jail!
Why is he talking about revenue instead of profits or taxes
Thanks
Bb2014,2016
Only if you provide better connectivity and a broader range of services for travellers than the current carriers. The figures will show in the end. Meanwhile, get your team of national aviation experts together and brace yourselves for professionalism.
One of the conditions of IMF ballot in the 90’s and subsequent loan write off was the privatisation or liquidating of loss making public enterprises.
I will be very suprised if IMF will continue giving us loans if our development model is resurrecting parastatals. Gvt should focuss on deliverying services and leave business to the private sector.Why are they so convinced that the private sector will never run a successful airline. Provide the right conditions and the private sector will deliver. Forget Supa loaf, UBZ, ZCBC etc
Mushimba is lying ,only about 15% of the $1.5bn goes to Zambia as VAT the rest is foreign carriers money.No way Zambia will earn 50% of the $1.5bn from foreign carriers using a struggling and unknown start up airline.
Its not that simple sir.
You assume that you will suddenly have a long chain of customers all waiting to board your planes.
You also think that emirate, SAA and others will suddenly pull out and leave space for you.
You think that people will so easily abandon the classy, reliable airlines like emirates and jump onto you clown show airline with zero service record, zero safery record etc?
These clowns just throw out numbers and think that people will get star in their eyes and not analyse issues.
If running airlines was that easy, we wouldn’t be hearing about how SAA is heavily subsidised by the government, or how Sir Zim is dying. My friend operating costs for airlines are extremely high, with extremely high and expensive safety standards. The kind that a joke government like…
Mr Mushimba will you please give us the financial part of the national carrier re-introduction feasibility study. Show us the revenues and the operating cost that will give the $500 milion
I don’t know how hard it is for Zambians to understand one simple thing.Those routes that you cry are not serviced ,do they make business sense .How many people will be buying air tickets to Mwense ?What makes up the huge cost of running an airline ,why are plane tickets so expensive .You lot are all missing the point .These airlines do not make money and this is the one doomed to fail .Surely people that are far more educated sat down to pass this through ?
Kabanshi
Baba which educated people sat to make this decision?From what i heared the decision was made by Cabinet.Do you know the composition of your Cabinet.Search them up google you will be dissapointed.
FIRST TELL US ABOUT THE OPERATIONAL COSTS BEFORE FOOLING US WITH THE PURPORTED REVENUE.ALSO REFER TO THE MALAWI-ETHIOPIA JOINT VENTURE.
You guyz are for miracles.You invest in $30m, but rip out $500m.
Which even Ethiopian airlines the most profitable carrier doesn’t make such a of profit amount.
?t’s like you straightly win off the market and displace your competitors.
Ba Mushimba, that US$500 million is too huge a figure for the private sector not to have seen such an opportunity. South African Airways is already loss making and needed about the same figure for a bail out, how is Zambian Airways under the now corrupt IDC going to make a profit. This IDC will ensure that Edgar’s immunity is removed because its now clear this where Mutati is looting from. President Lungu needs to prioritise projects that will bring economic development
What are you going to offer, which is currently not being offered , to get a share of $500m? We have been down this road before and the results were disastrous. This minister has got a very short memory, who is fooling who?
These lazy foools like to pick figures from air…this Brian clown will not even be there when we start keep this thing afloat..really laughable…not even EA records such figures in the region.n
Just enjoy your cut with Lazy Lungu!!
What are you going to offer, which is currently not being offered , to get a share of $500m? We have been down this road before and the results were disa-stro-us. This I-d-I-o-t has got a very short memory, who is fooling who?
these guys like number,CSO will give us nice small inflationary numbers,ministers give us nice big numbers and they think we will swallow,its rubbish….
What are you going to offer, which is currently not being offered , to get a share of $500m? We have been down this road before and with disastrous consequences.
‘ten foreign carriers transporting 1,500,000 passengers per annum’
Ba Mushimba projecting that 50% of these carriers and passengers will be market share for Zambia Airways, it is a total dream. I would believe you If we had a strong base for international flight connections. I am certain we have but almost none. There are lucrative routes you would wish but will be far-fetched.
Very good Brian to be too ambitious but know that the country’s economy is about the allocation of scarce resources among the alternative uses. Is allocation of our taxpayers’ money into airline business a possible frontier of generating funds into our economy today? Stop using your ‘heart’ when it comes to thinking.
Issue needs to be revisited and more consultations done with stakeholders who are now raising alot of genuine concerns because of their past experiences and Zambia’s current economic situation .
Is there success in Malawi? If not, what are we going to do differently with Ethiopian?
This fool Brian Mushimba has really been corrupted full-time after joining PF.
He used to be a man on integrity back then.
But now he has become a very corrupt lying and thieving scumbag.
What a shame.
STOPP BLUFFING YOURSELF………..
forecast and projections are good for business. if anyone is stilarguing why zambia needs a national airline, i would pull my hair but if the conversation is on profitability, i just say time will vindicate Brian and PF.
Bushe these PF ministers, what do they smoke????? What planet did they come from?????????
Hazaluza Hagain due to mouth diarrehae!
I recall the fat desk lawyer and ex-fired DPP making the same remarks when him and the wannabe scribe and tax avoider took money from dbz and blew it on new hammers and pajeros and Mercedes benz only to disappear with the cash over 14b rebased kwachas and the interest is accumulating….so sober up the 15m people every year pass through the gates of the UAE every day….
Ba Mushiba,
If Zambia retains US$ 500 million of revenue, from where you imbec!les will get operational expenditure?
Mind you, Ethiopian Airlines highest annual operational profit of some US$ 56 million was achieved ONCE and it was on the back of oil prices of US$ 28 to 32 per barrel!!!
Just remember, Air Tanzania leased B767 from Ethiopian and was wiped-out for a quarter of century. From whom you are going to lease aircraft(s)?
The are just desk top assumptions, made not by any real business calculations but just saying out of $1.5 bn dollars Zambia can return 500 dollars. Tell us the business cash flow projections and anticipated breakeven points. As when as when the company is expected to start posting profits. This is business not politics.
These are just desk top assumptions, made not by any real business calculations but just saying out of $1.5 bn dollars Zambia can return 500 dollars. Tell us the business cash flow projections and anticipated breakeven points. As well as when the company is expected to start posting profits. This is business not politics.
there opportunities for example which can be explored i.e. reducing the cost flying between towns in Zambia and you would have migrated the middle class to flying this will reduce congestion on the roads and save a lot of lives.
Musiota: For once I agree with you. Why talk about revenue? Why not profit? See, the intention already is not to run the air line as a commercial venture. I’m afraid the justification is more based on the consideration of opportunity costs …me the costs that will be saved from frequent presidentisl travel thru use of alternative transport