Ethiopian Airline and Industrial Development Corporation (IDC) have signed an agreement for the establishment of Zambia Airways.
The agreement was signed by the chief executive officers of both companies, Mr. Mateyo C. Kaluba and Mr. Tewolde Gebremariam respectively in Lusaka on August 19 2018, as shareholders of Zambia Airways.
A statement from Ethiopian Airlines, said as strategic equity partners on the national airline project of Zambia, IDC would hold 55 percent equity in the carrier while Ethiopian holds 45 percent.
“The initial investment as we start-up the national carrier will be $30million. Obviously, as we operate the airline, we will facilitate the finance necessary to support the growth.
“It is expected that the new airline will operate 12 aircraft and carry 1.9 million passengers by 2028.
“As shareholders, we have a clear sense of direction we need to take in order to ensure the fortunes and secure growth of the national airline. We will instil a performance-driven culture through corporate governance structures and make Zambia Airways commercially viable. Zambia Airways will launch local and regional routes, while the international routes, including Europe, the Middle East and Asia will be added in the near future”, the statement said.
Also, Ethiopian Airline Group CEO said, “For Ethiopian airline, this investment is consistent with our vision 2025 Multiple Hubs Strategy in Africa.
“As an indigenous and truly pan-African airline, we believe that African carriers will only get their fair share of the aviation industry and African market through partnerships with other African carriers.”
IDC CEO said, “For IDC, this investment represents our commitment to deepening and strengthening Zambia’s industrialisation, the establishment of the national airline will spur growth in the tourism sector and will have significant multiplier effect on job creation through the different business in the aviation supply chain such as hotels, restaurants travel agencies, publisher and others.”