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Tuesday, June 2, 2020

National Airline Shareholder Agreement involving Zambia Airways and Ethiopian Airways is still Intact

Economy National Airline Shareholder Agreement involving Zambia Airways and Ethiopian Airways is still...

Transport and Communications Permanent Secretary Misheck Lungu speaking during the launch of a new Zamtel tower at Kakumbauzya in Petauke District
Transport and Communications Permanent Secretary Misheck Lungu speaking during the launch of a new Zamtel tower at Kakumbauzya in Petauke District

The Ministry of Transport and Communications has corrected the misrepresentation of facts by some media institutions with regards to the National Airline project.

Ministry of Communication and Transport Misheck Lungu has since dispelled rumors that the Permanent Secretary in the Ministry of Transport and Communications Misheck Lungu will be traveling to Ethiopia to try to and convince Ethiopian Airlines to agree on the choice of aircrafts.

He explained that contrary to media reports, the Shareholders Agreement, the Aircraft Lease Agreement, the Technical Support and Maintenance Services Agreement that were signed on 19th August, 2018 between Ethiopian Airways (ET) and Industrial Development Corporation (IDC) to provide the operational framework for the National Airline.

Mr Kafwaya said the four Agreements above are supported by the business plan which was jointly developed by IDC and ET.

He noted that business plan defines the business model to be adopted for Zambia Airways (2014) and that the Agreements and business plan remain unchanged and will provide the frame work within which Zambia Airways (2014) will operate going forward.

Mr Kafwaya stated that business model for Zambian Airways (2014) was developed and agreed upon by both shareholders, who are IDC (holding 55% shares) and ET (holding 45% shares) after a detailed and thorough analysis of the route plan.

He added that the model also supported the growth plans and competitive environment within which Zambia Airways will operate in, adding that this was done to promote operational efficiency and foster growth and profitability of the National Airline.

The Minister further noted that the plan has specified the fleet plan that will be appropriate for Zambia Airways.

He disclosed that the choice of aircraft was arrived at after considering the route plan, market demand and competitive environment for operating commercial flights as the National Airline grows and matures.

Mr Kafwaya said government will not interfere in the day to day operations of the defunct Zambia Airways like it was with the previous governments.

He pointed out that to this effect the running operations of the airline will be left to the Management team which will be constituted through a competitive recruitment process.

He added that the Ministry’s role will be limited to Policy formulation in the aviation sector to create an enabling environment for the smooth operation of the aviation sector.

Mr Kafwaya disclosed that the newly constituted Board of Zambia Airways (2014), will soon have their inaugural meeting to among other issues recruitment the Chief Executive Officer (CEO) who will then facilitate the recruitment of the rest of the Management team and immediately commence the process of acquiring the Air Operators Certificate (AOC) and Air Services Permit (ASP) before the launch of the aircraft.

This is contained in statement issued to ZANIS by the Ministry of Transport and Communications in Lusaka yesterday.

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  1. Zambia Airways is a dead on arrival kind of project.Think of a another project like ZR refurbishment,more Lusaka roads or a set up a sovereign wealth fund.

  2. The thinking, ET is monopolizing the African aviation market, is a myth. Thanks to the ignorance expressed in these threads, 80% of the continents aviation business is conducted by none African carriers; Gulf and European cos. dominate! Ethiopian and its partners cover 10% of the remaining 20%. Sure, ET is looking to profit from the new venture as is the Zambian gov.: 55% to the former’s 45%. Maybe some of us would like to go back to not too distant past where African travelers had to detour through European or Gulf cities to fly from Lusaka to Accra? Lol.

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