SECRETARY to the cabinet Roland Msiska says owning a national airline will open Zambias potential in various sectors of the economy.
Speaking during an Economic Association of Zambia (EAZ) discussion programme in Lusaka on the National Airline and the best economic model, Dr Msiska said the country is assured of good returns on the investment in the air transport sector.
“We are having one million Zambians flying out of the country . Let’s make an assumption that the average cost per ticket is US $1000 That’s million US Dollars going out of the country, Are you surprised that the Kwacha is under pressure. I’m just giving you these thoughts because you are economists,” Said Dr Msiska
We are not under any illusions that our colleagues from the other side (Ethiopian Airline) are not discussing how they can take advantage of the situation.
He stated that Zambia is studying the business model carefully and will settle for a win win situation
“On the question of the benefit of it, every person goes into business to make profit. We are not under any illusions that our colleagues from the other side (Ethiopian Airline) are not discussing how they can take advantage of the situation. It is our negotiation skills and our abilities to look at the model and get a win win situation”
And Ministry of transport and communication permanent Secretary Misheck Lungu says it is important for the country to be Air linked. Mr Lungu said that Zambia’s economy can not survive with externalization of resources which is done due to unavailability of a national Airline
“If you look at the passenger traffic that uses our Airports you will realize that we are externalizing money. Our economy can not sustain externalization of our resources. All tickets are sold in Dollars. We are exporting Movement. Why can’t we tap in that money and localize that money,” he wondered
Meanwhile Centre for trade policy and Development Executive Director Isaac Mwalipopo welcomed the decision to establish the National Airline
welcome idea ,long overdue , but we need clear policies ,including making sure there is no misuse and that we need a diversified business vision or model right from the beginning ,while expanding as we go on and also with a viewing of buying back shares . But need prudent management and no GRZ interference
He means Ethiopian Airlines painted with Zambian flag. Ask Malawi Govt how Ethiopian Airlines has conned them.
We have thousands of ACCA, CIMA, marketing, catering, business management graduates, pilots, Aircraft technician, MBA holders, doctors languishing without jobs but fail to give them an opportunity to operate ZA.
PF regime ni MATUV.I chabe
Such shallow thinking from the secretary to the cabinet….“We are having one million Zambians flying out of the country . Let’s make an assumption that the average cost per ticket is US $1000 That’s million US Dollars going out of the country, Are you surprised that the Kwacha is under pressure. I’m just giving you these thoughts because you are economists,” Said Dr Msiska
Dream on!
Dr. Msiska … well spoken!!! Now even our previous Number One critics, the Center for Trade Policy & Development are on board. We drove the narrative and won the argument; another demonstration of how we run this country.
In support of government policy, we are looking forward to buying shares of QZ when floated on LuSE and buy the tickets on the inaugural flight on October 24, 2018. Great move indeed!!!
The smart people of the Zambian Enterprise are going to save a huge bill from externalizations given that the aviation business is currently worth $1.5 Billion a year … Ba Roy na Ba Brian, faka speed!!!
I need to qualify my statement of the aviation business being a $1.5 Billion Enterprise … this is for just the Zambian market at the moment.
That’s a significant part of our current GDP … so, go figure!!!
**LT ADMIN*** – stop propping up the thumbs up on the blogger above just to prompt interest, its no different to what Kudos did ..its clearly rigging and cheating; how does someone get 33 thumbs up when the increase in page views was less than that number.
@maloza; Spot on. Ethiopian airlines in Zambian Colors. I can’t wait to see the Tail Registration Numbers that those planes will bear. The routes they will serve so that we can see how this will benefit Zambians. Our leaders love money so much that they don’t care to have our country treated as second class, provided they made their pocket fat. It’s pathetic to have such greed. We are waiting and Msiska. We will hold you accountable.
This is when you need to hear from an MBA/PhD weildering Mushota about an educated comnent but my! she becomes scarce. MUSHOTA can we have a coherent and logical comment to support your credentials that have made your trademark?
One million flying out the country per day, week, month, year, decade, century, millennium? That’s a billion dollars, let’s factor in the costs now bwana msiska.
Dont mind them they never buy their own tickets…the meeting was a disaster for these guys; he thinks all Zambians will suddenly start flying EA…i have never flown EA because i look for cheap flights on Cheapflights.co.uk or Skyscanner.
Abena Jay Jay … it’s no wonder you are against QZ because you think you will not be able to fly on it since you can’t afford ET fares right now so to you it goes without saying that since you are cheap, QZ will automatically be out of reach for you since we are partners … now we are talking.
I told you … just let them run their mouths and eventually the truth will come out. Support your local team for once be like the Swiss. Swiss Air is one of the most expensive airlines to fly and yet the Swiss only fly alternative airlines if Swiss Air does not fly there.
Swiss watches are the most expensive in the world and yet every Swiss is taught the importance of wearing a Swiss Watch and being on time like everyone of these masterpieces of their own creation.
Swiss cheese is the…
Continued …
Swiss cheese is one of the most expensive in the world but every Swiss insists on having nothing but Swiss cheese at breakfast, lunch and dinner.
It’s called being patriotic … by the way you referred to Ethiopian Airlines as EA, it’s actually referred to as ET just like Zambia Airways was not referred to as ZA but QZ.
Too bad now QZ belongs to some airline in Malaysia or something but to me, it will always be QZ … it was my first love in the skies. And don’t worry about pricing the regional piece will be very competitive.
Do you realize that SAA’s most profitable route is LUN to JHB and vice versa? They are flying 5 times a day charging upwards of $600 on same day purchases sometimes.
We need to drive them out of business on this route. As cheap as you…
Continued …
We need to drive them out of business on this route. As cheap as you are, I am sure you can fly to Europe via Qatar for that much, I reckon.
Over in Europe, you can fly from Geneva, Switzerland to Paris, France for $60 bucks on easyjet or from Valencia, Spain to Milan, Italy for $40 buck on Ryan Air on one way, or from Zurich, Switzerland to Düsseldorf, Germany on Eurowings for $64 bucks.
We are helping SAA as loss making as it is remain afloat, how about cutting into that piece of the cake by going in and offer lower prices and keep revenues for ourselves? Huh???!!!!
There he goes with his delusions and make-believe drivel…you CLEARLY have no understanding of airline sector; the fact that you have used Swiss Air as an example clearly demonstrates that: Swiss Air is not even owned by the Swiss that company was liquidated in 2002 and that Brand is owned by German Airline’s largest Lufthansa. I am not ashamed to shop around for the best price just like those backpackers who come to Zambia from Europe…who are you to lecture me? You are just foaming from the mouth about patriotism and you have no understand of it – a govt pour $30 million plus in a sector that is competitive and in company that will not record a profit for the next 5 years is utter recklessness and dame right stupidity!!
*…by German’s largest airline Lufthansa.
@ Ka Jay Jay … kikikikiki!!! I love it when I drive you bananas. Yes, Swiss Air is partially owed by Lufthansa just like Zambia Airways will be owned partially by ET but just like always you missed the point.
Every tail of every plane flown by Swiss Air carries the Swiss Flag not the German flag despite who the majority shareholders are and likewise every tail of every plane to be flown by QZ will carry the Zambian flag not the Ethiopian flag.
That’s the patriotism that drives the Swiss to fly Swiss Air. Both your inductive and deductive capacities are highly questionable in almost every blog you post.
What’s your IQ?
Continued …
Furthermore, the largest beneficiary of Swiss Air are the Swiss through increased traffic, one of the largest employers in Switzerland as well as revenues towards the Swiss GDP.
In their weakness, they have turned what was once a large liability into a major asset and the smart people of the Zambian Enterprise are about to achieve the same and you’re just envious.
Sit down, relax and enjoy the flight …
BR Mumba JR the flaw in your analysis is that you seem to assume the European liberalized (deregulated) market is similar to the closed market of Africa…let me put it to you in a layman’s language – its very difficult to run a budget airline in Africa like SouthWest, RyanAir, EastJet etc because of heavy govt involvement in the sector like this govt is doing…EA we use Zambian govt to frustrate its competitors in the end its me and others who want to pay affordable ticket fares.
You just post comments on here to fill them with soundbites but are clearly out of depths to how the industry works…seating in Business Class and drinking fizzy white wine with your feet up does not make you an expert.
Wake up!!!!!!!!!!!
This economics sounds very flawed. First of all, I am pretty sure we do not have 1 million Zambians flying every year. Where does he get that figure from? Is he referring to passenger traffic? He should account for inbound and outbound traffic. Let us assume we have 500,000 outbound passengers, not all of them will be flying to destinations that we can realistically hope Zambia Airways to be flying to. So we can only hope to get a fraction of that revenue. Furthermore, his estimate of tickets costing on average $1,000 is a gross exaggeration. $500 is closer to reality. I guess another indication that as a senior government officer he is always flying at taxpayers expense and does not know the real price of air travel. To use his same logic on the pressure that dollar externalisation…
You just drive or board buses what do you know about flying. A380 – 800 carries 800 passengers per trip. Just count how many people will move in and out if that plane was to be landing in lusaka even 4days a week.
@ D!ck head
1. A380-800 has NOMINAL capacity to carry 800 pax on SHORT flights;
2. Up to date, there is NO single A388 with that configuration;
3. New terminal has NOT be design to accommodation A388, and
4. You are ABSOLUTE !MBECILE
@HH Oval Head is as shallow in his thinking as Dr.Msiska. Fly to Ndola on Proflight or Mahogany, they have 40 seater planes and struggle to get half occupancy. Lusaka lands at most 10 planes a day (O’Hare in Chicago lands 2400/day). This national airline will be a big boost to Ethiopian Airlines and you can only admire the Ethiopians ingenuity in dupping the gullible Zambian Koswe Cabinet
Really laughable how dull these chaps are..you think A380 can land at KKIA? The economics do not add up for it to land there..
Abena Oval Head … your numbers are erroneous; one thing is right, no current A380 has that configuration for 868 passengers which it’s is certified for one-class for both decks.
Current ones are three-class configurations with Air France having the largest capacity at the moment of 538 passengers between First Class, Business Class and Economy Class.
Having said that, you’re right about increased traffic. The new Terminal at KKIA is designed to handle 5 million passengers per year. At the peak of QZ we had planes landing at LUN every 30 minutes.
If we just got back to that level of travel, we will increase traffic and eventually make KKIA a hub for the region.
One other thing all these naysayers always fail to factor in is that at out height as QZ we had 2 or more flights…
Continued …
One other thing all these naysayers always fail to factor in that is critically important is that at out height as QZ we had 2 or more flights per day to each of our 8 neighboring countries and each of those flights were only between 30 to 55 minutes.
Only Zaire (now DRC) was being serviced out of Ndola to Lubumbashi on the 737 … another 30 minutes flight. The rest were out of Lusaka.
Also, beyond that as a regional airline the new QZ has access to a total population of 450,000,000 within SADC, that’s almost 150,000,000 more people than the population of the continental US.
That’s a huge market which if managed properly can generate huge sales for QZ as a connecting hub for all airlines flying into Zambia right now.
I have nothing but great vibes every…
Continued …
I have nothing but great vibes every time I think at this market and it’s potential that’s why I am ready to invest in the new shares.
Let’s sit down, relax and enjoy the flights … it’s a dawn of a new era for the smart people of the Zambian Enterprise … Let’s roll.
Meanwhile Ba Roy na Ba Brian, faka speed, we needed this QZ back in the skies yesterday … thanks a trillion
“One other thing all these naysayers always fail to factor in is that at out height as QZ we had 2 or more flights…”
Look at Junior Mumba spewing claptrap – you forget to tell you fellow tin that the ZA plane was flying half full and was full of discounted staff who happen to ZA staff.
… the externalisation that will take place, as a result of purchase and lease of the aircraft, jet fuel, maintenance of the aircraft, fees for aircraft parking bays at other international airports? I had some respect for him but his analysis above in trying to justify this airlines business does not inspire confidence at all.
All the items you list here will be factored in the fare hence localizing movements to and fro Zed. We still pay this even now as we move to and from Zed. The difference now will be that it will be localized as we pay for the tickets
All profits will be externalized to Ethiopia. Starting with the $30million which will be siphoned as consultancy fees
All Aircraft maintenance will be awarded to Ethiopian Airlines maintenance subsidiary
All catering will be awarded to Ethiopian Airlines catering subsidiary
All top management positions will be awarded to Ethiopians
All uniforms contracts will be awarded to Ethiopians
Air-hostesses will mostly be Ethiopian girls
Pilots will mostly be Ethiopians
Zambians’ contribution is to buy tickects & to feel proud to have a national airline
Msiska that’s a bold lie bcuz a great part of that 1m people are foreigners flying in or out.And how come the old Zambia Airways never opened the so called potentials?
Foreigner will pay in Local fx, hence localizing the cash. Please think
Hakaaiinde – do you even know where so called “foreigners” pay tickets? This is the problem with proponents for a national airline like Msiska they have no clue how the sector works..they think its like buying a taxi in Lusaka and putting it to work!!
*…buy tickets?
It wont do anything .It is just one way that you koswes are going to use to siphon tax tax payers money into your accounts and buy gold wrist watches worth £60 000 at the expense of providing Lusaka with clean water and sewerage system
Imagine how can a civil servant offord a $60K watch not even in the White House but in State House…and US is funding the biggest sanitation project in Lusaka because we are too poor to do it!!
LT u’r not being truthful n nt givin complete info. I attended th discussion, CTPD said th idea ws gud bt ill timed n thus OPPOSED it. How abt other discussants like airwrks n th independent consultant views? Thy strongly opposed the idea. Hw abt concerns frm general membership of EAZ? Provide ful coverage nt one side report.
Mr. Msiska, stated that e will be looking for a win win situation with our negotiating skills.
Sir, with an agreement with ethiopian airlines already in place one would expect that all the terms were documented.
So what he is saying is that despite signing an agreement we dont know the terms.
How do you manage an airline when ypu cannot manage a contract
Masalamuso – its really sad ..these people have even the audacity to use business catch phrases like “win -win” yet they hardly understand their true meaning!!
But who the 4uck is gonna get on the stupid plane?You will find Msiska himself on SAA while he encourages us to risk our lives on his s.tupid experimental planes.
“Roland Msiska says owning a national airline will open Zambias potential in various sectors of the economy.”
Like opening up the chance for CORRUPT PF DEALS! That sector of the economy?
Zambians must beware of the dangers posed by the likes of Rupiah Banda & Lungu, the self appointed leaders among those illegal alien “Malawians” in Zambia who don’t believe in national identity & want us to live in a utopian mixed pot where only they preside over matters.
This is one of the most dumb analysis you would expect from a senior government official. Everything he said are lies and gross fabrications. That the Zambia airways experiment wont work is known to even the most stupid of people
He knows Zambians are docile…he can even tell them that PF govt is negotiating procuring five A380 from France..really laughable… and people will cheer wildly forgetting that the unit cost is $500 million each.
But slowly Zambians are starting to wake up and questioning everything like they are doing in Chongwe!!
So if Msiska is not an economist what was he doing quoting ecinomic figures which he does not know how to use or understand? Just what he doibg addressing an economics asdociation and nit government economists?
My government, I voted fir you and I will vote for you again but I still dont agree this thing will work. And what are you going to do with the budding and promising Zambia airlines? What have you done to make them more affordable and to grow?
He is just following his “anointed” Boss who is not politician but CONVICTED EMBEZZLER, and yet, !mbeciles like you voted for him
Excuse him ..he has just been sent by his dull masters like Brian who couldn’t show up as he is counting his contracts at home!!
By the way Dr Msiska has enough on his plate soliving the shambles in the civil service. Under him service delivery and performance and morale and morality in the civil service is nothing to write home about, its the worst that it has ever been under this secretary to the cabinet . Msiska’s civil service now cannot even write letters to confirm thousands of civil servants who quality. Ifyou cannot write a simple letter, what can you tell about the economics of a national aulirline Dr Msiska? Doctor first remove the logs from your eyes, leave national airline to Hon Mushimba to argue with is not you. Just wait for a ride in the plane when it comes.
By the way Dr Msiska has enough on his plate soliving the shambles in the civil service. Under him service delivery and performance and morale and morality in the civil service is nothing to write home about, its the worst that it has ever been under this secretary to the cabinet . Msiska’s civil service now cannot even write letters to confirm thousands of civil servants who qualify. If you cannot write a simple letter, what can you tell about the economics of a national airline Dr Msiska? Doctor first remove the logs from your eyes, leave national airline to Hon Mushimba to argue with us not you. Just wait for a ride in the plane when it comes.
The spoilers are greedy politicians….thats why it won’t work….msiska has never said a word against bad governance how are we going to be sure that politicians will be put under control…….
God help us all those negatives on Zambia Airways. Dr.msika we progressive Zambians who are in Zed it’s the right choice to have our own airline. Those complaining carry on. True Zambians are on it our own airline finito.
There is nothing you have said there to support this creation of national airline…you are there now talking about being patriotic..really laughable what’s patriotic about painting EA planes with Zambian flags. I am sure you dont pay tax if you did you would want your money to spend wisely on roads, drainage, street lighting etc
And Ministry of transport and communication permanent Secretary Misheck Lungu says it is important for the country to be Air linked. Mr Lungu said that Zambia’s economy can not survive with externalization of resources which is done due to unavailability of a national Airline
“If you look at the passenger traffic that uses our Airports you will realize that we are externalizing money. Our economy can not sustain externalization of our resources. All tickets are sold in Dollars. We are exporting Movement. Why can’t we tap in that money and localize that money,” he wondered CANT UNDERSTAND WHAT THIS PS IS TALKING ABOUT
All he is saying are utter lies…when you create another airline passengers do not appear from nowhere you have to fight for the existing passengers…as for externalization, this is an EA company using EA software …these people have no idea what they are talking about!!
These guys Roland Msiska & co lamentably failed to justify the need for an airline…in fact they asked they be invited again so they collect data.
At his state visit to France, Lungu came back all upbeat with a the major highlight and breakthrough of his visit that French government was going to assist Zambia with establishing its own airline. Whatever, happened with those plans?? We have never heard anymore since. Like the much taunted lucrative oil deal after his Saudi Arabia visit is probably only pub talk, perhaps?
We told you back then that it was laughable thinking that France would assist in a risky idea like that as if the own airbus alone …Lazy Lungu is just that lazy..he has gone to Rwanda to tour a small country for two days when Presidents from abroad come to Zambia they dont waste time touring around.
It’s like wanting to have a baby just for prestige, not knowing the amount of responsibilities that go with nurturing a child from infancy. It’s like having a national soccer team which can’t bring you the World cup but only happy to have participated in the tournament. It’s like going back to your vomit.It’s like chasing the wind. It’s like…. it’s like that!
I beg to differ. While you see those things as obstacles, others will see them as opportunities. We all face obstacles in life but, it is however, how we respond to those obstacles that makes all the difference in the world.
Europeans have always had terrible weather (too cold) but this did not stop them from moving forward. As a result of the cold weather, they learnt to construct good houses with advanced heating technology to keep them comfortable in winter.
The problem with us Africans is that we are satisfied with less, while the rest of the world is moving on. No wonder we’re always lagging behind. You cannot expect good things to happen if you do not take actions that lead to positive results.
these guys are selling us air,Msiska cant even put proper figures to the plan..he is hypothesizing at this stage really..
This is just the tip of the iceberg when you look at the minutes of this meeting your blood will boil with anger!!
Having a national airline is not the main issue; Its how you run it and mange its operations that we are not sure about.
Already we seem to be depending on others to do the business for us….
Plan this thing properly!
Here we go again – is the glass half full or is it half empty?
This project is so exciting because it seperates the optimists from the pessimists, those who dare to advance and those who would rather retreat. Both groups could be correct, but why not just leave it up to time to tell?
Fact is that every business decision has to go through turbulence in order to sustain. There will definately be hard times and better times in ZA. Just like your child wont make you happy all the time or sad all the time but you will still keep him because he is your child.
You simply have no understanding of business my dear …you talk as if you are using your own funds – you can not even build better drainage for your roads ie the main roundabout in the capital!!
zambia does not need foreigners to help in setting up a national airline. Use those ex-Zambia Airways staff before they die out. We had our own pilots and aeronautic engineers trained at great expense to the public sector.
The fact of the matte is you do not need an airline…if you want to invest Zambia go into agriculture. Ex ZA staff are retired now and systems are updated now..you think an engineer who was repairing nokia phones 25 years ago can suddenly start working on Samsungs & iPhone touchscreens just like that!!
You have got it wrong JayJay. The principles/ economics of running an airline remain the same. Those same ex-Zambia Airways engineers and pilots have been snapped up by other airlines.
Why do you think if an Emirates Airbus has a fault at KKIA they wait for their own engineers who are up to date with the aircraft to come from Dubai to fix it…do you not watch National Geographic…just like a Pilot can not just jump in a Dream liner from a DC 10 of 10 years ago you need training.
*..DC 10 of 30 years ago you need training.
Airlines can save money through fuel deals, as fuel prices are so volatile it’s hard to predict what way prices might go. Another way for airlines to cut costs when it comes to fuel is for them to refuel at their base airport rather than at other airports, as discounts are sometimes obtainable on home ground. The government should set benchmarks and control their spending track expenses. Having transparent finances is really important for the smooth, and profitable, running of any business. They should control costs aggressively in order to improve future expenditure and profit margins. They should insure wisely and we all know that an aircraft is a huge investment and the insurance is just another overhead for an airline. They should negotiate airport fees. Today’s aviation market is…
When has govt ever done that with Zamtel and Zesco???
Today’s aviation market is highly competitive and fuel prices are at all-time low, airlines should embrace the power that they have to make their solutions work for them, financially. Government should formulate unbeatable maintenance plans for the airline. Look at Kenya airways they managed effectively and efficiently.
This airline scheme is one of the damnest moves the PF has ever embarked on. The airline industry is extremely competitive, look at South African Airways, Swiss Air etc and numerous bankrupt US airlines. With our overly expensive jet fuel, just how do you think you will survive? It’s a painful joke this is.
Great leaders we have will change the trajectory of Zambia for good! Well done! You are developing the nation at an acceptable rate! Please don’t listen to those who want you to slow down! They don’t mean well! Building of modern airports, stadia, malls, roads, power generation plants etc, has changed Zambia! God be with you! Don’t listen to some low-thinking groups of people who see tribe and not people.
God bless you Dr. Msiska, the Secretary to the Cabinet! Your job is highly appreciated and thank you for breaking red tape to do a professional job for people who request help.
Foools always see “corruption” but it is a tribal agenda they have and I am ashamed we could have such kind of people in our society today. When friends ask me about Zambia and some negative people I always tell them of a tribe and tribal walls and wars!
Sharon you up…singing the selfsame song!!