Is Zambia Airways, a curse or blessing?

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By Nakamba Mwinji, Derrick Sinjela and Muleya Idah Chongo

PRIVATE Sector Development Association (PSDA) Chairperson Yusuf Dodhia has received national carrier Zambia Airways fees on the Lusaka-Ndola and Lusaka – Livingstone air routes with mixed feelings.

Responding to a Monday 6th December, 2021 Zambian Developmental Media Alliance (ZADEMA) Press Query, on ramifications of   Zambia Airways rebirth, Mr.  Dodhia observed that travel fees the new airline, a joint venture with Ethiopian Airlines were extremely lower than to those charged by Pro Flight and Mahogany Airlines.

Dodhia says it could be that the fees are meant to undercut Pro Flight and Mahogany Airlines charges by a huge margin or the duo had taken advantage of lack of competition to milk unsuspecting travelling public as monopolies in a closed market.

Dodhia curiously observed that perhaps the Airline’s on the ground had become a cartel and could make peg air travel fees at astronomical rates to milk the traveling public.

Pro Flight is costing a one way ticket at K4, 275  and return ticket at K8, 550 on the Lusaka Ndola route, which at K1, 696, on same route, by Zambia Airways is cheaper by K6, 854.

According to Dodhia the price variance on domestic tourism rekindle a similar approach in the cement industry when a new competitor entered the Zambian market selling a 50 gramme bag of cement at K50 but lately the same brand is costing as the one it tried to dethrone through charging under cut prices.

On the Lusaka Livingstone route, a return ticket through Zambia Airways is costing K1, 515.

Dodhia observed that perhaps Zambian Airways charges are genuinely realistic.

“It is a reality that the traveling public will prefer an airline that is charging K1, 696 than one costing a one way ticket at K6, 000. To this extent, there might be another side to it that Zambian Airways might be subsidizing as a strategy to win passengers from competitors. If you recall, five or six years ago, a cement company sold this product at K50 but over time increased the cost and today, all across the market, cement pricing is leveled.

Dodhia says to contend with the new market competitor; both Proflight and Mahogany Airlines have to adjust their air travel fees.

However, Dodhia hopes Zambia Airways will operate at ‘Break Even’ level so that it can pay its own bills and not let Government continue subsidizing the entity.

Dodhia said lessons had been leant as to the burden of ploughing in billions of dollars to sustain operations.

“South Africa has as much wider economy but us here in n Zambia’, if as public entity undermines competition could see debt burden increasing,” Admonished Dodhia.

Barely a week in operations, Dodhia asked Zambian’s to domestically take advantage of the affordable fees by flying to destinations of their choice.

Meanwhile, Economist Noel Nkoma says Zambian Airways needs to be supported as the fees are breaking what he termed as ‘price fixing’ by market cartels.

Mr. Nkoma applauded Zambian Airways for bringing sanity in air travel costs in Zambia.

Further, Nkoma says once price fixing is noticed, Government has an obligation to intervene as the case is with Zambian Airways.

Said an elated Nkoma,: ” This is good, even us who were opposed to the rebirth of Zambian Airlines will render support as the other airlines were ripping off unsuspecting travelling public”.

Former Transport and Communications Minister Mutotwe Kafwaya said once Zambia Airways takes to the sky, such a development would change the hospitality and economic profile of Zambia.

Speaking as he witnessed Civil Aviation Authority (CAA) Director General Gabriel Lesa hand-over an Aviation License Certificate to Zambia Airways Limited Chief Executive Officer Bruk Endeshaw, Mr. Kafwaya rejoiced over a milestone that will anchor domestic, regional and international hospitality.

Kafwaya, a Patriotic Front (PF)  Lunte Member of Parliament (MP) in the Northern Province is confident that Zambia Airways will assist Government to develop the Northern Circuit.

“As a Northerner, I am very happy that this development is a milestone for the aviation sector as it will boost the Northern Tourism Circuit,” said Kafwaya.

Kafwaya restated that former Sixth President Edgar Chagwa Lungu and former Vice-President Inonge Mutukwa-Wina leadership had remained determined to increase tourism traffic into Zambia with the construction and renovation of airports countrywide.

Flanked by former Transport and Communications Ministry Permanent Secretary, Engineer Misheck Lungu, Kafwaya said incredible investments Government had made in the transport sector are in line with the five pillars underlined in the 7th National Development Plan (SNDP) 2017-2021.

Meanwhile, Civil Aviation Authority Director General Gabriel Lesa vowed to continue providing an enabling environment for airlines in Zambia.

On his part, Zambia Airways Chief Executive Officer Bruk Endeshaw said the airlines Management and Board will advise when the company operations begin as 53 per cent preparedness threshold had been recorded.

Mr. Endeshaw said possible domestic destinations are Ndola, Livingstone, and Kasama, while Harare (Zimbabwe) and Johanesburg (South Africa) are tentatively set as a regional entry point by Zambia Airways Limited.

A look at Zambia’s 7NDP 2017-2021, set it as a building block spurring progress to meet the goals contained in Vision 2030, building on the Revised Sixth National Development Plan (2013-2016).

The new plan represents the Government’s first concerted effort to move away from sectoral-based planning towards an integrated and multi-sectoral approach, which embeds and encapsulates SDGs and their indicators.

The broad theme of the plan is “accelerating development efforts towards Vision 2030 without leaving anyone behind” with the primary goal of “creating a diversified and resilient economy for sustained growth and socio-economic transformation, driven by, among other things, by agriculture.”

Using an integrated approach, the 7NDP has domesticated the United Nations Sustainable Development Goals (UNSDGs) African Union Agenda 2063, as well as the Regional Indicative Strategic Development Plan.

The 5 pillars of the SNDP are: “1-Economic diversification & job creation, 2-Poverty & vulnerability reduction, 3- Reducing developmental inequalities, 4- Enhancing human development and 5- Creating a conducive governance environment for a diversified economy.

That said investing in marketing and strengthening train, road, and air transportation is key toward developing Zambian’s hospitality potential.

Tourism Minister Rodney Sikumba assures Tourism Council of Zambia (TCZ) that there is enough money to craft Game Management Plans for national parks and game management areas and tourism marketing.

Sikumba, a United Party for National Development (UPND) Alliance Livingstone Central Member of Parliament (MP) says a ministerial team is auditing various enterprises’ sittings and tourism concession agreement.

And Tourism Ministry Permanent Secretary Evans Muhanga urged TCZ to consolidate all concerns for technocrats to evaluate proposals.

Meanwhile, TCZ Vice Chairperson Yusuf Zumla called on Government to come up with a Statutory Instrument for all applications for tourism enterprises licenses to go through the council for approval.

Mr. Zumla said an average of 20% of tourism operators run their businesses without tourism licenses making it unfair to others that are complying with the regulations.

Launching a Youth and Sports Policy Framework at Golden Peacock Hotel in Lusaka, UPND Secretary General (SG), Batuke Imenda tagged 10 key areas of importance such as education and training; youth and health; youth and agriculture; sustainable livelihood and youth employment; climate change and youth empowerment; ICT; arts, culture and tourism; governance, democracy and leadership and mind-set shift.

National Youth and Sports Committee Chairperson, Prudence Chinama, has applauded President Hichilema’s zeal to rescue and resuscitate the economy to decent, respectable and sustainable levels.

As Zambia is striving to improve the hospitality sector of the economy, it is imperative to recall that reviving Zambia Airways is viewed as an effective catalyst.