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Thursday, May 2, 2024
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Government told to be careful with the Ethiopian Airlines deal

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GOVERNMENT should put up deliberate measures to ensure that Ethiopian Airlines does not monopolise the local market once the Zambian Airways is actualised, says an independent business consultant

John Kasanga said that specific policy measures must be initiated to protect domestic players in the aviation industry.

Mr Kasanga said this on Thursday at a public discussion meeting held at Taj Pamodzi Hotel in Lusaka that was organised by the Economics Association of Zambia (EAZ).

Mr Kasanga explained that Ethiopian Airlines might use its links with Zambia to frustrate other players in an effort to monopolise the market.

“There is a risk that Ethiopian Airlines might use its links with Zambia to foment the dominant position against our competitors who are bringing traffic into Zambia, “Govt must guide against monopoly because once they (Ethiopian Airlines) clear others they can make adjustment to suite themselves,” said Mr Kasanga.

He said the coming of Zambian Airways should address the current high cost of flying.

Mr Kasanga also implored government to engage stakeholders throughout the implementation of the airline.

“Lessons must be learnt from the failed Zambia Airways if this project is to succeed.”

The Zambian government is currently in talks with Ethiopian Airlines to introduce a national airline that will be implemented under a joint venture with Zambia expected to hold 55 percent of the total shares.

11 COMMENTS

  1. Watch how the people who oppose this idea will be the first ones flying with this national airline! That’s a Zambian for you.

    • 45% shares are just too much to be given to Ethiopian Airline (Ethiopian Government), Zambia should hold 90% share and give Zambians 5% and another 5% to Ethiopian.
      That is the formula that Chinese Airlines use when they partner with USA carriers.

    • Money has already changed hands …that’s why Brian sent these clueless civil servants who have never bought a ticket from their pocket..why should he turn up!!

    • @ Linkman: These are not criticisms but a contribution to our Government to watch out. We have an example with Air Malawi under Ethiopian Airline in the same set-up. There is no improvement at all neither is it benefiting them. They are just a feeder to ET. Zambia is a hot destination with national parks and can attract higher traffic. If we have a proper strategy, we can manage our own independent airline and codeshare with ET. Not them running our Airline. Wake up and see the wrong than just comment based on emotions.

  2. Simple statistic. What percentage of the Cost of doing business in Zambia can be explained by the Cost an airticket?

    Take into account the fact that Zambia Airways will not be flying everywhere.

  3. Good advice. …no need to say more. But let me ask why foreigners hold us to ransom? KK tried to put everything in our hands but we overthrew him in preference to foreign domination.

    • Khakis; This is not the only reason we voted out KK (never overthrown though). KK ran out of steam on his own. The new breed of politicians lack patriotism. They are not the kind of politicians you can call benevolent or visionary. They are not taking us to the promised land since there is no promise.

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