Acting Information Minister Stephen Kampyongo says Zambia will have 55 percent shares in the national airline whilst Ethiopian Airline will get the remaining 45 per cent shares.
He was speaking at a press briefing in Lusaka today when he updated the nation on decisions made by Cabinet on Monday December 18, 2017.
Kampyongo said Zambia Airways would be given a US$ 16.5 million grant for start-up and operational costs in the first year.
“I wish to reiterate the announcement by my colleague, Minister of Transport and Communication [Brian Mushimba], that Cabinet, under this item, approved the operationalization of the Zambia Airways (2014) limited by concluding a partnership with Ethiopian Airlines as a preferred strategic partner with a shareholding structure of 55% by the Government of the Republic of Zambia (RGZ) and 45 per cent by Ethiopian Airlines (ET). The 55 per cent 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,” Kampyongo said.
“In any case even when you are building a house, you don’t build a carport for someone else to come and park a car. You build with the hope of parking your own car. So we are not building this infrastructure for other airlines to benefit.”
Kampyongo said government would not interfere in the operations of the airline.
“We have learnt lessons on how Zambia Airways failed to conduct business and going forward, there will be no interference with the running of the new face Zambia Airlines. The public is hereby informed that the Patriotic Front government has since 2012 invested nearly US$1 billion in aviation,” said Kampyongo.