in Business & Finance

Ethiopian nearing early JV deal for new Zambian carrier

Posted 3 October 2017 · Add Comment

Ethiopian Airlines is set to tighten its stranglehold on the Southern African market following comments by CEO Tewolde Gebremariam that a deal with the Zambian government over its Zambia Airways project could be reached in the coming weeks, reports ch-aviation.

In an interview with Bloomberg, Gebremariam said the tentative joint-venture carrier would feature the Zambian government and private-equity investors as additional shareholders. The signing of an outline plan in the coming weeks would then set to stage for a final agreement which could be concluded by November. Zambian Minister of Transport, Brian Mushimba, recently told ZNBC that the Zambia Airways project was currently being vetted by the Ministry of Finance before heading to Cabinet for review. If all goes according to plan, the new airline could be launched as early as next year.

The Zambian domestic market is currently home to Proflight Air Services, Royal Air Charters, and the recently relaunched Mahogany Air. All three are privately-owned. Proflight is the oldest having launched in 1991 around the time that IMF-backed privatization reforms required government to cease subsidizing the original Zambia Airways. Without state funding, the carrier eventually folded in 1994.

Ethiopian is in the process of developing Lilongwe into a Southern African feeder hub by virtue of Malawian Airlines in which it has a 49% shareholding. Recently, the two were awarded domestic Mozambican traffic rights with Ethiopian being granted 108 route authorities and Malawian seven. According to Tewolde, Ethiopian is also in talks with Uganda over a joint venture airline while Equatorial Guinea's CEIBA Intercontinental  is considering expanding their maintenance agreement "into something bigger.”

* required field

Post a comment

Other Stories
Advertisement
Latest News

Turbulence ahead on the route to a national carrier

Just like his nine predecessors, Nigeria's Aviation Minister, Hadi Sirika, has started championing a process of creating a national carrier capable of filling the void left by the liquidation of Nigeria Airways in 2003. But, as Chukwu

NAS launches new Pearl Lounges at Marrakech Menara Airport

National Aviation Services has launched its Pearl Lounges at the Marrakech-Menara Airport in Morocco reinforcing capacities at the newly renovated airport.

CEO of Airbus to step down

Airbus has announced that its CEO Tom Enders will be leaving the company in April 2019, reports aerotime.

Flydubai touches down at Kilimanjaro International Airport

Flydubai's inaugural flight touched down today at Kilimanjaro International Airport (JRO), increasing capacity to Tanzania and further expanding its network in Africa to twelve destinations.

Proflight Zambia female pilot clocks 1000 hours flying time

The career of Proflight Zambia's youngest female pilot Besa Mumba has taken off after clocking up 1,000 hours of flying time.

Colas UK secures construction deal for new Ugandan Hoima International Airport

Colas UK has revealed its new direction as a transport infrastructure company able to compete for the largest projects both in the UK and overseas.

Aviation Africa SK18418
See us at
Aviation Africa BT18418