Ethiopian Airlines, ranked as the largest Airline in Africa in revenue and profit has acquired a 45 percent stake in Zambia’s national carrier that is set to be re-launched after more than two decades.
The airline announced on Tuesday that it had signed an agreement with the Zambian government to re-launch its Zambia Airways, acquiring 45 percent stake in the firm. It did not disclose how much it had paid for the stake, Reuters reports.
“The airline (Zambia Airways) is meant to initially serve national and regional destinations before embarking on international flights,” Ethiopian Airlines said in a statement.
State-owned Zambia Airways went into liquidation in 1994, paving way for the privately owned Zambian Airways which emerged as the country’s main carrier with flights to other major hubs in southern Africa but later in 2009 suspended operations.
In late 2017, Zambia’s cabinet approved the revival of the national airline at an estimated cost of $30 million.
Ethiopian Airlines operates and manages Malawi Airlines through a deal signed in 2013. It also has a deal with ASKY, a West African airline whose shareholders include the ECOWAS regional bloc of countries and a number of banks.
The airline hopes to increase revenue to $10 billion by 2025 and to expand its fleet to 140 aircraft from less than 90 now, with its sights set on Asia.
