The Malawi government has finished negotiations with the troubled Air Malawi’s strategic investors, Ethiopian Airlines.
“I’m pleased to announce that the deal is now settled,” said Public Private Partnership Commission (PPPC) Chief Executive, Jimmy Lipunga, at a press conference in Blantyre on Wednesday.
“Ethiopian Airways has agreed jointly with the Malawi government to change the airline’s name to Malawian Airlines Limited.”
Lipunga said Malawi would have 51 per cent stake in the new airline with Ethiopian Airlines getting the remaining 49 per cent.
He said of the 51 per cent Malawi’s shareholding, 31 will be given out to interested Malawians to be part of the company.
According to Lipunga, US$20m would be injected into the new company to recapitalise it.
Ethiopian Airlines has also promised to bring in two new aircraft for the new company.
The liquidated Air Malawi has been sailing in troubled waters for years leading to delays, cancellation and suspension of scheduled flights, among other things. Currently there are no flights between Malawi’s major cities of Lilongwe and Blantyre.
Lipunga said the new deal means the national flag carrier will be back on local, regional and international routes.