Malawi Airlines cirtification under DCA scrutiny
Malawians will still have to wait longer before they start enjoying the services of Malawian Airlines Limited as the partnership between it and Ethiopian Airlines (ET) is undergoing certification process, the Department of Civil Aviation (DCA) said yesterday.
DCA director Alfred Ntilatila told Business News that ET, which holds a 49 percent stake and has made an initial investment of $20 million (K8 billion, at the current exchange rate) has submitted a formal application which is being reviewed.
He said the DCA will have to review the application to ensure that it meets the international standards, and if they are not satisfied they will have to send it back for fine-tuning.
“The timeline [of the certification] is a bit tricky. The minimum international standard is 90 days. The conclusion of the certification depends on how we progress with the process,” said Ntilatila upon being asked when the new airline will roll-out its services.
Earlier, government officials said the partnership will also have to be reviewed by the International Air Transport Association (IATA).
The Malawi Government has a 20 percent stake in the airline, the successor of the now liquidated Air Malawi Limited, and is expected to invest about $10.2 million [K4 billion] to be disbursed in two tranches, the first being $4 million [K1.6 billion] and rest at a later stage, should Malawi individuals and institutions, expected to hold the remaining 31 percent stake in the next 12 months, fail to come up with the offer.
ET, according to an earlier announcement by the Public Private Partnership Commission (PPPC), is initially expected to bring in, Boeing 737-300 with 130 seats and Bombardier Q400 with 78 seats, which will also have to be reviewed by relevant civil aviation authorities.
At the signing ceremony of the partnership at Kamuzu International Airport (KIA) in Lilongwe in July, the Malawi Government and ET chief executive officer Tewolde Gebremariam noted that a ‘rigorous process’ will have to be undertaken before the new airline starts its operations, because the industry is highly regulated.
“The financial and technical capacity is there and we have aircrafts and technical expertise ready, but the regulatory process is rigorous and if we do not follow all the procedures, countries will not allow us to fly in their destinations,” he said.
Already, the company has filled up almost all the management position by Ethiopian nationals, as per the agreement, headed by Kassim Geresu as the Malawian Airlines CEO.
In announcing the appointment of Geresu ,Gebremariam said he has the requisite academic and experience in the airline industry which will ensure the successful take-off of Malawian Airlines.
He said he expects Geresu to make Malawi Airlines Limited an airline of choice for its customers, investors, employees and the general public.
Business News has learnt that the crew for the airline, for the first six months, will be Ethiopian nationals.
When called to confirm this, PPPC CEO Jimmy Lipunga said he was in a meeting and Minister of Transport and Public Infrastructure Sidik Mia could not be reached on the phone.
The new airline, whose headquarters will be in Lilongwe preferably within KIA premise, will not need the majority of assets owned by the liquidated Air Malawi, but will likely need maintenance facilities and a hangar at Chileka Airport, according to PPPC.
It is expected to operate regional flights to Johannesburg (South Africa), Harare (Zimbabwe), Lusaka (Zambia), Dar es Salaam (Tanzania) and Luanda (Angola) with domestic flights in Lilongwe, Blantyre, Mzuzu and Karonga.
Later, it is expected to expand flights to Nairobi, Kenya and Mozambique in the second year of operation and in the medium term, it will be working towards intercontinental flights to Sao Paulo, Brazil.
