AGREEMENTS and a business plan for the operations of Zambia Airways remain unchanged and will provide the framework within which the soon-to-be-relaunched airline will function.
Acting Minister of Transport and Communications Mutotwe Kafwaya said in a statement yesterday that the agreements signed between Ethiopian Airways and the Industrial Development Corporation (IDC) will provide the operational framework for the airline.
Mr Kafwaya said this to dispel media reports that the ministry’s permanent secretary will be travelling to Ethiopia to try to convince Ethiopian Airlines to agree on the choice of aircrafts.
The Shareholders Agreement, the Aircraft Lease Agreement, the Technical Support and Maintenance Services Agreement were signed in August.
“The four agreements are supported by the business plan which was jointly developed by IDC and ET. The business plan clearly defines the business model to be adopted for Zambia Airways (2014).
“The stated agreements and business plan remain unchanged and will provide the framework within which Zambia Airways (2014) will operate going forward,” he said.
He said the business model was developed and agreed upon by the shareholders, IDC (holding 55 percent shares) and ET (holding 45 percent shares) after a detailed and thorough analysis of the route plan, growth plans and competitive environment within which the airline will operate.
“This was done to promote operational efficiency and foster growth and profitability of the national airline,” Mr Kafwaya said.
He also said the ministry is alive to the past mistakes of Government interfering in the day to day operations of the defunct Zambia Airways.
“To prevent the recurrence of such mistakes, Government through IDC constituted an independent Board of Directors whose role is to provide oversight and supervision to the management team.
The ministry and IDC will not be involved in the day to day decision-making of Zambia Airways,” Mr Kafwaya said.The newly constituted board will soon have its inaugural meeting at which the recruitment the chief
executive officer (CEO) will be discussed. The CEO will facilitate the recruitment of the rest of the management team and start the process of acquiring an Air Operators Certificate (AOC) and Air Services Permit (ASP). “As Government, we are confident that the launch is closer than ever before,” he said in apparent reference to the media
reports that this has been deferred to the third quarter of 2019.