Zambia airways likely not to make any profits!
Aviation Expert Captain George Sinkala says he does not see flag carrier, Zambia Airways making any profits as long as the contract involving the local airline and Ethiopian Airline is not reviewed.
Captain Sinkala in an interview has maintained that Ethiopian airlines is a direct competitor as it flies to all destinations where Zambia Airways would plan to fly to.
He is of the view that the shareholders being aware of the conflict of interest should not have allowed Ethiopian airlines to compete directly or indirectly on the domestic and Regional African market for at least 10 years to allow the local airline to grow.
Captain Sinkala explains that there is no guarantee that the airline will ever contribute any taxes, adding that the only time Zambia will have access to the airline’s account is when Ethiopian management declares a loss at the end of the financial year.
The new Zambia Airways is a joint venture established in August 2018 between the Industrial Development Corporation Limited, which holds 55% shareholding, and Ethiopian Airlines with 45% ownership.
Credit: Radio Phoenix