Ethiopian Airlines to hold 45% in the newly formed Zambia Airways 2014
In the recently announced partnership between the national carrier of Zambia and Ethiopian Airlines, the latter might hold 45 percent stake.
December 26, 2017: In the recently announced partnership between the national carrier of Zambia and Ethiopian Airlines, the latter might hold 45 percent stake. The transport minister in the third week of December has announced that the newly formed entity under the partnership will revive the old Zambia Airways However, there was no clarity given on the stakeholding pattern during the announcement.
Lusaka Times reports that Ethiopian Airline will get the 45 percent share of the Zambia Airways 2014 Limited and the rest 55 percent would remain with the Zambian government quoting the acting Information minister Stephen Kampyongo.
The previous national carrier, Zambia Airways was liquated in 1994. The cabinet has approved the re-establishment of the long-awaited national airline at an initial estimated cost of US $30 million.
The news report further elaborates that Zambia Airways would be given a US$ 16.5 million grant for start-up and operational costs in the first year. â€œThe 55 percent equity shareholding by GRZ will be held by the Industrial Development Corporation (IDC) and that a grant equal to US$16.5 million be allocated to Zambia Airways (2014) limited for startup and operational costs year one,â€ Kampyongo said.
Zambia Airways ran broke primarily due to patronage and abuse by the political establishment, reports the Daily Nation. Zambia Airways was founded in 1964 as a subsidiary of Central African Airways.
Ethiopian Airlines was launched in 1946 and distinguished itself as a pioneer in African aviation industry.