‘Born again’ ZA targets $500m income from ticket sales

The US$500 million will be retained in the domestic economy, thereby providing more revenue for economic expansion. Zambia is currently being serviced by more than ten foreign carriers transporting 1, 500, 000 passengers per annum and accruing in excess of approximately US$1.5 billion through ticket sales per annum. Considering the status quo, Zambia is not benefitting from the current scenario as foreign carriers are not required to pay airport fees if they stay at the airport for less than 2 hours. Government through the Industrial Development Corporation (IDC) will hold 55 per cent in Zambia Airways (2014) Limited and 45 per cent by Ethiopian Airlines, the strategic partner. Commenting on the development, Minister of Transport and Communications, Brian Mushimba, said once the national airline restarted, Zambia had the potential to earn up to 50 per cent of the US$1.5 billion revenue generated from air tickets sales. “The two strategic partners will be required to make a shareholder’s contribution to the national airlines equal to US$30 million for the first year to cover immediate start-up costs,” he said. Eng. Mushimba said in a statement made available by the ministry’s head of public relations, Maimbolwa Mulikelela, that the new airline would contribute to increased growth in the tourism, agriculture, mining and other service industries thereby boosting foreign exchange earnings. Eng. Mushimba said the reintroduction of the national carrier would enhance competition in the aviation industry ultimately contributing to lowering costs of air tickets for its domestic and regional travellers.