Categories: Business

Relaunching of Zambian Airways not a threat to Mahogany Air

Mahogany Airline says it is not intimidated following the plans to relaunch the Zambian Airline as it is already established in the aviation industry.

The airline which started operating last year, feels that it is the Zambian Airways that should feel intimidated as the airline is coming on a market that is already dominant by his company.

The Zambian Government in August formalized its relationship with Ethiopian Airlines following the signing of a shareholders agreement for the Zambian Airways project.

Under the terms of the deal, the Zambian Government will control a 55% stake in the nascent carrier through its Industrial Development Corporation (IDC) with Ethiopian controlling the remaining 45%.

Initial capitalisation has been put at US$30 million.

Zambia Airways is expected to complete certification and launch on January 1, 2019.

But Mahogany Chief Executive Officer Dr. Jim Belemu tells Money FM News in an interview that the airline is already in operation while the Zambian Airways will be new on the market.

Dr. Belemu boasts that, the Zambian Private Airline Company, is also expanding its routes in order to boost its business.

He says the Zambian Airways will in fact need to collaborate with Mahogany Air in order to get the experience the company has gained in the aviation industry.

“Our theme is ‘Zambia Hospitality’ no airline can beat us now or late because we are doing fine in the business,” he said.

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