…IDC holds 55%, Ethiopian holds 45% shares in national carrier
Posted by Sade Williams
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 in Lusaka on August 19, 2018 as shareholders of Zambia Airways.
A statement made available to the Travelport from Ethiopian airline, stated that as strategic equity partners on the national airline project of Zambia, IDC will hold 55 percent equity in the carrier while Ethiopian holds 45 percent.
“The initial investment as we start-up the national carrier will be USD$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 instill 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.
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 industrialization, 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”.
The statement noted further that with the Zambian government’s drive to build transportation infrastructure from the new airports, good road networks and now, the airline, both shareholders, said they are confident that Zambia is destined to become Southern African regional aviation and logistics hub’.
“We look forward to growing this partnership from strength to strength and seeing Zambia Airways take to the skies this year’, say the shareholders.