The Management of Ethiopian Airlines (ET) is reported to be well advanced with negotiations between it and the Malawi Public Private Partnership (PPP) Commission for the acquisition of 49% of the shares in Air Malawi.

CEO of Ethiopian Airlines,Tewolde Gebremariam,told World Air news recently that Malawian Privatization Commission had invited ET as a preferred bidder for the privatization of Air Malawi .Gebremariam said the two parties had started discussions.However,he said details of the discussions were covered under a confidentiality agreement adding that they could not be for public information.

Ethiopian Airlines has been named the preferred bidder to take over State-owned Air Malawi .The Government of Malawi asked companies to present expression of interest for the partial acquisition of its failing airline. Subsequently 11 airlines submitted bids to the Malawi Privatization Authority.

Ernest & Young has been undertaking a study of the privatization of Air Malawi which ceased its operations .After evaluating the expression of interest, eight companies was selected to participate in the bid. Three of the eight companies-Ethiopian, Fly Africa and Global Business Networks-were the finalists.

Malawi Public Private Partnership Commission CEO, Jimmy Lipunga, reports that Ethiopian Airlines scored 67 points, beating Fly Africa of South Africa (61 points) and Global Business Networks of Botswana (59 points).

“The selection has been largely influenced by the preferred bidder’s global experience and competitiveness. The viability of the restructured Air Malawi will be greatly enhanced through a strategic partnership with a global player. Air Malawi will gain more traffic through international route linkages,” said Lipunga.

He confirmed that the Malawi Government was negotiating with Ethiopian Airlines to take over a 49% shareholding in Air Malawi, while the Malawi Government would retain 20%, with the balance of 31% going to Malawian citizens or institutions.

Lipunga added:”Ethiopian Airlines will be expected to satisfy the preference by Malawians for competitively priced and high-quality air services to multiple destinations originating from Malawi. This is also in keeping with the drive to promote the tourism industry”.

Lipunga forecast that, depending on the pace and outcome of the negotiations, Air Malawi Limited, a new company to be formed as a result of the deal, should be able to start operations in the next two months. “Roping in of a strategic partner for Air Malawi is part of the drive by the Malawi Government to develop the aviation sector. An efficient aviation sector has the potential to unlock significant foreign exchange-earning capacity in the tourism sector,” he said.

Prior to its closure ,Air Malawi’s route network included five regional and three domestic destinations from its twin hubs of Chileka Airport, in Blantyre ,and Kamuzu International Airport ,in the capital ,Lilongwe .On the regional front ,it served Johannesburg ,in South Africa,Dar es Salaam, in Tanzania, Nairobi ,in Kenya, Lusaka, in Zambia, and Harare ,in Zimbabwe.

Lipunga expressed the hope that, with substantial investment in the airline, Air Malawi would be a feeder airline to the two major regional hubs of Johannesburg and Nairobi. He said there was also potential to introduce several new routes in the region and beyond, based on existing bilateral air services agreements.

Ethiopian anticipates establishing a regional hub in Southern Africa, most probably in Zambia .Ethiopian is expected to deploy key personnel in Blantyre and design a turn-around programme for the ailing airline.

World Air news understands that the Air Malawi personnel-both ground and air staff, who lost their jobs with the demise of the national carrier, have been invited to submit new applications for employment to the airline. This is an indication that hopes are high for an early revival of the carrier.

Latest news is that Ethiopian Airlines is to open a new route from Addis Ababa to Blantyre at the beginning of June. This is in addition to the long-existing service to Lilongwe which has operated on a thrice-weekly basis.

Another new route will be to Ndola, in Zambia, which will open soon.

Anthony A Juma is the Editor and Director Commercial & Flights Operations at Wings Over Africa Aviation Limited. This is an Air Charter Company that specializes on Daily Scheduled Flights For Passengers & Cargo Africa. The website has guided thousands of travelers to achieve their dream holiday. For more information and guidance, visit the site at http://www.wingsoverafrica-aviation.com/index.php/sheduled-flights.html

Anthony A Juma is the Editor and Director Commercial & Flights Operations at Wings Over Africa Aviation Limited. This is an Air Charter Company that specializes on Daily Scheduled Flights For Passengers & Cargo Africa. The website has guided thousands of travelers to achieve their dream holiday. For more information and guidance, visit the site at http://www.wingsoverafrica-aviation.com/index.php/sheduled-flights.html

Author Bio: Anthony A Juma is the Editor and Director Commercial & Flights Operations at Wings Over Africa Aviation Limited. This is an Air Charter Company that specializes on Daily Scheduled Flights For Passengers & Cargo Africa. The website has guided thousands of travelers to achieve their dream holiday. For more information and guidance, visit the site at http://www.wingsoverafrica-aviation.com/index.php/sheduled-flights.html

Category: Travel
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