Centre for Trade Policy and Development-CTPD has advised government to abandon the launch of the National Airline looking at the current economic statues of the country.
Speaking in an interview with Money FM News, Centre for Trade Policy and Development Executive Director Isaac Mwaipopo said government will not be able to manage the operations of the airline considering how it has struggled to source for $27 million to pay Eskom for the importation of electricity.
“More recently the country struggled to funds to pay South African power utility firm Eskom for the importation of power which is a clear sign that the country’s economy is stressed” Mwaipopo said.
“If importation of power from South Africa is stressing the nation, where is government going to get resources to finance the national airline until a time it becomes profitable”?
Mr Mwaipopo said estimations have shown that for the national airline to be profitable it may take about five to ten years, a situation that will mean that government will need to borrow resources for the successful operation of the airline.
He notes that it would be wise for government to consider abandoning the project completely for simple reason that it has failed to pay for the jets that were to be purchased from Russia.
Mr Mwaipopo adds that failure by government to purchase the jest from Russia is an indication that the economy is stressed and government is having a lot of challenges in mobilizing enough resources domestically to finance development initiatives. .

He adds that it would be wise for government to allow private sectors to take a lead in the industry other than launching the airline.
Early this year the ministry of transport and communication announced that the national airline would be launched in the third quarter of 2019, at an initial cost of US$30 million.