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Chakwera, board chair discuss Malawi Airlines

President Lazarus Chakwera yesterday met Malawi Airlines board chairperson George Partridge in Lilongwe to discuss possible solutions to financial woes crippling the debt-ridden airline.

In an interview yesterday, presidential press secretary Brian Banda said the meeting took place in the morning at Mtunthama State Lodge and was aimed at addressing the crisis around the country’s flag carrier.

A Malawi Airlines aircraft at the airport

He said: “The President met the board chair this morning and heard his perspective on what ails the airline and how to cure it.”

Malawi Airlines, a registered partnership company with shareholding b e t w e e n M a l a w i Government (51 percent and Ethiopian Airlines (49 percent), is currently sitting on a cumulative loss position of K14.09 billion ($17.86 million) as well as an accumulated K13.83 billion ($17.54 million) in debt, as at February 2021.

Between October 2020 and February 2021, the company recorded a loss of K285 million ($361 000), according to documents we have seen.

When cont a c t ed, Partridge could not be drawn to comment on what transpired during the meeting.

Minister of Finance Felix Mlusu, in a separate telephone interview, also said he was not privy to the meeting and would, therefore, wait for Partridge to brief him.

Asked what possible sur v i v a l s t r a t e g i e s government is exploring to resuscitate the airline as a majority shareholder, Mlusu said such strategies would only be suggested by the board.

He added: “Since the direction or strategy is provided by the board which we mandated, the same board will inform us any options and as a shareholder, we will look at those options. We believe we have a capable board handling the matter.”

However, it still remains unclear whether the airline’s board will rescind its decision made on March 25 2021 to liquidate the company which it describes as technically insolvent.

Part of the resolution reads: “The Directors have assessed the company and found it technically insolvent and not a going concern if shareholders do not inject equity into the company.

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