The National Airline Study – The Business Model and Financing Option for Zambia Airways: Where will the Money come from?

The Zambian government seeks to relaunch its National Flag carrier, Zambia Airways, using a Joint Venture agreement with Ethiopian Airlines as the strategic partner. Zambia Airways is envisaged to have domestic, regional and intercontinental flights and requiring an initial investment of US$30 million (GRZ, 2018). Airlines can be operated using a number of business models: Full Service Network Carriers (FSNC), Low Cost Carriers (LCC), Holiday Carriers, Regional Carriers, Traditional Freight Carriers, Integrators and Hybrid Carriers (Reichmuth et al, 2008). In the wake of increased financing needs, with debt accumulation leading to poor macroeconomic stability and reduced spending towards the social sectors, it is imperative to pinpoint the potential sources of financing for the relaunch of the national airline. Furthermore, Zambia needs to mitigate against the potential bailout needs of a straggling national airline through the use of an appropriate business model.

Download Here

Leave a Reply

Your email address will not be published. Required fields are marked *