Ethiopian Airlines acquires 45% of Zambia Airways

The deal revives Zambia Airways

Ethiopian Airlines – Africa’s fastest growing carrier – has acquired a 45 percent stake in Zambia Airways that is set to be re-launched after more than 2 decades.

Ethiopian Airlines, which is also Africa’s most profitable carrier, said Tuesday it has finalized a shareholders agreement with Zambia in line with its vision of setting up multiple hubs in southern and central Africa and the Horn.

Under the pact, the Zambian government will be the majority shareholder with a 55 percent stake.
“The re-launching of Zambia Airways will enable the travelling public in Zambia and the southern African region to enjoy greater connectivity options, thereby facilitating the flow of investment, trade and tourism, and contributing to the socio-economic growth of the country and the region,” said Tewolde Gebremariam, the CEO of Ethiopian Airlines Group.

In the statement, Tewolde said Zambia Airways will serve national and regional destinations before embarking on international flights.

In December last year, Zambia’s Cabinet approved the revival of the national airline at an estimated cost of US$30 million.
The airline was liquidated in 1994 after running broke largely due to patronage and abuse by the political establishment.

Ethiopia Airlines runs Togo’s Asky Airlines where it holds a 40 percent stake and Malawian Airlines, formerly Air Malawi, where it has a 49 percent shareholding.

Source: Business Daily Africa