Maravi

Calls for govt to establish national airline should be discouraged, sa

Calls for govt to establish national airline should be discouraged, sa
By Chiwoyu Sinyangwe
Wednesday April 02, 2008 [04:00]

CALLS for the government to establish a state-owned national airline should be discouraged, Bank of Zambia (BoZ) governor Dr Caleb Fundanga has observed.
And commerce minister Felix Mutati has said the success of Zambian Airways was a testimony that local entrepreneurs had the ability to achieve higher goals provided they remained determined.

And Zambian Airways director, Fred M'membe, has said the airline is considering to list on the Lusaka Stock Exchange (LuSE). During a presentation by Zambian Airways on their 'three-year growth development plan from 2008 to 2010' at The Post head office in Lusaka on Monday evening, Dr Fundanga expressed surprise that over thirteen years after Zambia Airways was grounded, people had continued to call on the government to establish and run a state-owned airline.
He instead noted that there was need to support private sector initiatives like Zambian Airways, which he said, was already carrying the national flag.

"I think calls for the establishment of state-owned airline should be discouraged," said Dr Fundanga. "I get surprised that there are still calls for establishment of a state-owned airline when Zambian Airways is already carrying the national flag and all it needs is our support so that it becomes a full national carrier, to even grow bigger than where Zambia Airways left."

And Mutati expressed satisfaction at the progress made by Zambian Airways in its growth.

"What we are seeing today is clear demonstration of the 'can do it notion'. Zambians should not shy away or feel afraid to make money...we see you fly in the sky everyday but we don't know that there was such a clear strategy behind your growth. In fact, we have learnt a lot from tonight's presentation," said Mutati. "I think Zambian Airways have set a platform for local entrepreneurs to learn that you can achieve whatever you aim for no matter the challenge...and we are ready to support you."

At the same occasion, lands minister Bradford Machila also expressed satisfaction at the growth recorded by Zambian Airways and stressed that the government would do anything to support the initiative.

Machila applauded Zambian Airways for initiatives such as the introduction of the business class on the Lusaka-Johannesburg route.
Machila also urged the airline to freely engage the government in its growth and expansion programme.

Earlier, during the presentation of the three-year growth and development plan, Zambian Airways chief operating officer David Evans, said the investment and development of human resource and advancement of technology remained at the core of the airline’s expansion programme.
Evans disclosed that Zambian Airways was currently working on a programme of recruiting and training its aviation staff as the Airline expands its programme.
"It is true that there is a shortage of skilled aviation personnel within Zambia. We have a good number of pilots and engineers already but with our growth and expansion we are going to have to increase that number and at the moment we are actively recruiting pilots and we have a number of pilots that are currently being trained. And we are also looking to do the same with engineers as well and this is going to cost us huge sums of money but we are ready to do it," said Evans.

He also said the loyalty the Zambian people had towards the airline was critical to its growth.
"And when I look at the Zambian people, they have so much pride and they are so loyal to Zambian Airways and I think that is critical to the growth of the airline. Zambians have showed so much support for the airline," he said.

Evans, who is a former managing director of a subsidiary of British Airways with a turnover of about US$600 million per year and overseeing over 60 aircrafts, said the prospects for the growth of Zambian Airways looked bright.
He also disclosed that he had experience in the airline industry of more than 34 years spanning over 17 countries.

"Zambian Airways may be small compared to my previous engagements but the principles of running an airline are the same," Evans said "I wouldn't be in Zambia if there were no opportunities for growth here. In fact, it is amazing how Zambian Airways had managed to develop and grow under so much difficulty."
Evans expressed delight at the profitability of Zambian Airways.

He also said Zambian Airways was not only looking at expanding its local routes by also introducing new market niches.
Evans also disclosed that the airline would next year acquire a third Boeing 737 200 to its fleet as part of its expansion programme.

"Just this week, we acquired three 30 seater Embraer jets to service out local routes and just today, we have introduced a business class Lusaka and Johannesburg," said Evans.
And M'membe disclosed that the airline was currently working out a plan of listing some of its shares on the LuSE.
"We are not obsessed with shareholding in the Airline. In fact, we are planning to take Zambian Airways to LuSE," M'membe said. "Our preoccupation is to develop the country through having a viable airline. We intend to take over from where Zambia Airways left."

Zambian Airways chief executive officer Mutembo Nchito thanked all the financial institutions and stakeholders that helped the airline in its infancy.

Nchito particularly thanked Finance Bank chairman Dr Rajan Mahtani who was among the pioneer financiers to the birth of Zambian Airways.
"The success of Zambian Airways clearly demonstrates the support and confidence that local banks had in our initiative," Nchito said. "We have developed to be where we are because of your banks support, and the fact that you came here for this event without formal invitations shows the support and confidence you have in us. We would like to thank you all."

Some of the stakeholders and business persons that attended the presentation included Dr Mahtani, Dr Fundanga, Mutati, Machila, finance Bank director for banking and marketing Noel Nkhoma, and Zambia State Insurance (ZSIC) corporate affairs director Chibamba Kanyama and Zambian Airways board and management team.

Labels: CALEB FUNDANGA, FRED M'MEMBE, ZAMBIAN AIRWAYS

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