Q FM Africa's Modern Radio
The Centre for Trade Policy Development (CTPD) has predicted that the planned re-launch of Zambia Airways which is scheduled for the first quarter of 2019 will be deferred owing to the financial constraints the country is currently facing.
CTPD Executive Director, Isaac Mwaipopo says the reality of Zambia’s debt position, with domestic debt at k54.6 billion and external debt at us$9.5 billion, makes the re-launch of the national airline a gamble the country can ill afford.
Mr. Mwaipopo notes that while the decision to re-launch Zambia airways is well-intentioned, it is not prudent due to the country’s current financial and macro economic situation.
Speaking during the launch of a study focusing on the plans to re-launch Zambia Airways by the government, Mr. Mwaipopo says the rebirth of Zambia Airways will be a drain on public resources and will crowd out private investment in the domestic airline industry.
And CTPD researcher Bright Chizonde has recommended that government should retain 45 percent shares in the airline as opposed to the 55 percent shares IT currently owns, to avoid political interference in the operations of the national Airlines.
Ethiopian Airlines owns 45 percent shares in the revamped Zambia Airways while government owns 55 percent shares.
Meanwhile Industrial Development Corporation (IDC) Leya Ngoma says the investment in the revival of Zambia Airways represents government’s commitment to deepening and strengthening Zambia’s industrialization.