Ethiopian is Starting a New Airline... In Zambia
Africa's largest airline continues to build its dominance in the region. Ethiopian Airlines has signed on to back a new airline in Zambia.
The venture will relaunch Zambia's flag carrier, Zambia Airways, which has been dormant for more than 23 years.
Ethiopian injected $30 million into the project, which expects to operate 12 aircraft by 2028. Reuters reports that the inaugural flight will occur on January 1, 2019 — an ambitious date for an airline that doesn't have any of its own aircraft.
"The initial investment as we start up the national carrier will be $30 million," Ethiopian and Zambia's state-owned Industrial Development Corporation (IDC) said in a joint statement. "Obviously, as we operate the airline, we will facilitate the financing necessary to support its growth."
Ethiopian is Africa's largest airline by both revenue and fleet size, surpassing other regional carriers like South African and Kenya Airways. It's been investing in other airlines in the region, such as Malawi Airlines, which it operates, as well as plans to run Nigeria's new national carrier. Ethiopian will own 45% of Zambia Airways with the other 55% being owned by the Zambian government.
After the state-owned Zambia Airways went into liquidation in 1994, the privately owned and operated Zambian Airways became the country's most prominent airline but shut down in 2009.
The new airline will launch intra-Zambia and intra-Africa routes next year while it eyes destinations in Asia, Europe and the Middle East.
In January, Ethiopian had announced that it signed an agreement with Zambia Airways, so this announcement is solidifying the plan to relaunch the airline. Apparently the launch was pushed back to January, and critics were quick to assess the move.
Ethiopian currently operates 103 aircraft. It's possible it will loan some of its aircraft to Zambia Airways or use the $30 million to lease aircraft for the upstart.
Some reports indicate that the Brian Mushimba, the Zambian minister of Transport and Communications, is in talks with Airbus to acquire wide-body jets. The same report said the airline would use turboprop aircraft for domestic Zambian and regional African flights and Boeing 737s to destinations like Dubai.
Before it shutdown, Zambia Airways flew Boeing 747s and other wide-body aircraft and was sizable player in the African aviation market. It even flew a DC-10 between its hub at Lusaka (LUN) and New York (JFK), a route that it may actually restart.
The Kenneth Kaunda International Airport (LUN) is currently undergoing a major $360 million major expansion, funded by China.
TPG featured card
at Bilt's secure site
Terms & restrictions apply. See rates & fees.
| 1X | Choose to earn up to 1X points on rent and mortgage payments with no transaction fee |
| 2X | Earn 2X points + the option to earn 4% back in Bilt Cash on everyday purchases |
Pros
- Choice to earn up to 1 Bilt Point per dollar spent on rent and mortgage payments
- Elevated everyday earnings with both Bilt Points and the option to earn Bilt Cash
- $400 Bilt Travel Portal hotel credit per year (up to $200 biannually)
- $200 Bilt Cash annually
- Priority Pass membership
- No foreign transaction fees
Cons
- Moderate annual fee
- Designed primarily for members seeking a premium, all-in-one card
- Earn points on housing with no transaction fee
- Choose to earn 4% back in Bilt Cash on everyday spend. Use Bilt Cash to unlock point earnings on rent and mortgage payments with no transaction fee, up to 1X.
- 2X points on everyday spend
- $400 Bilt Travel Hotel credit. Applied twice a year, as $200 statement credits, for qualifying Bilt Travel Portal hotel bookings.
- $200 Bilt Cash (awarded annually). At the end of each calendar year, any Bilt Cash balance over $100 will expire.
- Welcome bonus (subject to approval): 50,000 Bilt Points + Gold Status after spending $4,000 on everyday purchases in the first 90 days + $300 of Bilt Cash.
- Priority Pass ($469/year value). See Guide to Benefits.
- Bilt Point redemptions include airlines, hotels, future rent and mortgage payments, Lyft rides, statement credits, student loan balances, a down payment on a home, and more.


