Ethiopian Airlines inks $30m pact with Zambia to relaunch Zambia Airways
Aug 22, 2018: Ethiopian Airlines has signed a shareholding agreement with Industrial Development Corporation (IDC), Zambia’s main development agency, to relaunch the national carrier of Zambia – Zambia Airways, at an initial cost of $30 million.
The airline is being relaunched with a view to make Lusaka the hub for regional and international flights in southern Africa.
IDC will hold 55 percent equity in the carrier, with Addis-Ababa based carrier Ethiopian Airlines holding 45 percent. Ethiopian Airlines is one of those African carriers that has been operating profitably and also has been buying shares in other African carriers.
“It is expected that the new airline will operate 12 aircraft and carry over 1.9 million passengers by 2028,” said both the companies in a joint statement.
Zambia Airways will launch local and regional routes while the intercontinental routes including Europe, the Middle East, and Asia will be added in the near future.
“The establishment of the national airline will spur growth in the tourism sector and will have a significant multiplier effect on job creation through the different businesses in the aviation supply chain such as hotels, restaurants, travel agencies, publishers, and others, the statement said.
“With the Zambian Government’s drive to build transportation infrastructure from the new airports, good road networks, and now the airline, we are confident that Zambia is destined to become southern Africa’s regional aviation and logistics hub,” it added.
The agreement was signed by Mateyo C Kaluba, Group chief executive officer of IDC and Tewolde Gebremariam, the Group chief executive officer of Ethiopian Airlines, on August 19, 2018 in Lusaka.