Govt has no intention to open national airline, says Mubika

Govt has no intention to open national airline, says Mubika
Written by Chiwoyu Sinyangwe
Sunday, June 07, 2009 4:06:47 PM

COMMUNICATIONS deputy minister Mubika Mubika on Wednesday evening said the government had no intentions of setting up a wholly government-owned national carrier.

And Zambezi Airlines has said it plans to list on the Lusaka Stock Exchange (LuSE) by 2011 after launching its regional flights yesterday.

During the launch of Zambezi Airlines Boeing 737 - 500 flights between Ndola and Lusaka into Johannesburg, Mubika said the government would allow private sector led growth in the aviation sector.

“As government, we are not ready to open a national airline that is 100 per cent government owned,” Mubika said. “We are encouraging the private sector to open up. Those who are still dreaming, please come on board, the licences are there through the Department of Civil Aviation. We will give you all the support.”

Mubika urged Zambezi Airlines to learn from the mistakes made by those who had been in the industry before.

“Don’t fall in the trap, work on their weaknesses so that you can actually forge forward. We are happy today that we have a flag carrier for our country in the region,” said Mubika.

Mubika said the government would direct Zambia Revenue Authority (ZRA) to review downwards the tax system in the country to ensure the price of Jet A1 fuel was reduced for the survival of the aviation industry.

And Zambezi Airlines board chairman Dr Morris Jungulo said the first aircraft, Boeing 737-500 had already been delivered while the second one was due for delivery in the next seven days.

“We will be commencing regional flights and operating at full schedule by June 20th after the arrival of the second aircraft,” Dr Jungulo said. “We are looking to grow through frequency and expand that network, grow the fleet in line with market demand, increase and expand partnerships with other carriers. The strategy we have in place is to list this airline within 36 months and invite the public to own shares.”

Dr Jungulo cited volatility in fuel prices and poor airport infrastructure as some of the challenges facing the local aviation sector.

“2010 world cup in South Africa will also test the aviation and there are opportunities for us since we are only two hours away from South Africa,” said Dr Jungulo.