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

Ethiopian Airlines CEO issues statement

Ethiopian Airlines CEO, Tewolde GebreMariam, has released a statement after the crash of Ethiopian Airlines flight 302.

Mission possible: taking aid to a new level...

There’s a new era in air support opening up to the humanitarian community in Africa. David Oliver reports.

New rules for checking in bags at O.R Tambo International

New rules for checking in bags of irregular shape and size will be applied at O. R. Tambo International Airport from March 25, 2019.

Ethiopian Airlines refutes ‘wrong reporting’

Ethiopian Airlines has confirmed that Ethiopian pilots have completed the Boeing recommended and FAA approved differences training from the B-737 NG aircraft to the B-737 MAX aircraft before the phase in of the B-737-800 MAX fleet to

Honeywell's X Factor on the right wavelength

Honeywell is offering a new speedy JetWave installation service in South Africa. Steve Nichols reports.

INTRO Aviation partners Corsair for future growth

Convinced of the growth and development potential of the French long-haul airline Corsair, INTRO Aviation, the German private aviation company, has decided to become the main shareholder, alongside TUI group. The announcement was

Connect MEIA SK1402010519
See us at
Connect MEIA BT1402010519