CTPD advises govt to rethink launch of national airline
By Staff Reporter
The Centre for Trade Policy and Development (CTPD) has advised government to reconsider plans to re-launch the Zambia Airways.
CTPD’s researcher Bright Chizonde said the Center had conducted comprehensive research on this matter and concluded that to re-launching the national airline was not prudent due to Zambia’s current financial and macroeconomic situation.
He has since advised government to put the national airline on hold till the nation was in a better macroeconomic position to launch it as a regional carrier.
Chizonde noted that there was need for IDC to adjust its business model and develop a financing model for Zambia Airways and should thereafter be made public to address stakeholder concerns regarding operations, private investment synergies and government financing.
Chizonde explained that government was currently financially constrained due to debt levels, noting that it is unable to absorb either the initial investment or re-capitalization costs in case of failure.