Ethiopian Airlines, the largest airline in Africa, has concluded a contract with Zambian to restart Zambian Airlines’ service with an initial cost of USD 30 million after its two decades inactivity. The Ethiopian flag carrier has been buying shares from different African airlines to gain a competitive advantage over competitors such as those in the Gulf. The Airlines has excelled its regional rivals, South African Airways and Kenyan Airways, by revenue and profit.

According to a joint statement made by Ethiopian Airlines and Zambia’s state-owned Industrial Development Corporation (IDC), by 2028, Zambian will operate 12 planes and as per the agreement, Ethiopian will have 45 percent share of the ownership of Zambian Airways while Zambia owns 55 %.

The statement said Zambia Airways would start flights to local and regional destinations in 2018 while intercontinental routes, including Europe, the Middle East and Asia, would be added in the near future.

Based on a deal signed in 2013, Malawi Airlines is managed and run by Ethiopian Airlines. In May, the airline had announced that it was negotiating with Chad, Djibouti, Equatorial Guinea and Guinea to set up carriers through joint ventures. It also said it had plans to establish a new airline in Mozambique that it will fully own.

Source: Reuters