Angola
Botswana
Malawi
Mozambique
Namibia
South Africa
Zimbabwe
Cote D'Ivoire
Ghana
Nigeria
Kenya
Uganda
Tanzania
Mauritius
Seychelles
Algeria
Egypt
Morocco
ZambiaSubscribefree to biz newsletters |
 |
| Retail news | Press offices |
CategoriesPartnersSpecial sectionsLifestyleArchives | Air Malawi's survival dependant on publicAir Malawi CEO Wisdom Mchungula has confessed that the debt-riddled airliner is surviving by the mercy of Malawian public. The CEO made these confessions in the presence of the Malawi Parliamentary Committee on Budget and Finance in Lilongwe last week. He said Malawian passengers market is about a total of K12 billion in revenues and that Air Malawi is currently getting about 40% of the market share. Mchungula told the lawmakers that the airliner has a debt of K4.1 billion which could result in its liquidation. “The airline cannot service the debts on its own,” conceded Mchungula who blamed the debt burden on a misfired expansion drive it embarked on in 2005 which led to the acquisition of a Boeing 737 500 aircraft worth K140 million serviced by a PTA Bank loan. He said for the company to survive it only needs K1.8 billion out of the debt it has and since government is currently the sole shareholder, other shareholders should be allowed to come on board. “...For the company to be put on stabilised financial footing, a relief on the debt should be given by the shareholder injection of funds,” suggested the CEO. Secretary to the treasury Radson Mwadiwa told the parliamentary committee in separate appearance that government would not rescue Air Malawi.
About Gregory GondweGregory Gondwe is a Malawian journalist who has bagged close to fifteen years of working experience who started writing in 1993. He is currently regional editor and bureau chief for Zodiak Broadcasting Station (ZBS). Gregory is also a media consultant assisting several international journalists pursuing assignments in Malawi. He holds a Diploma of Journalism and an Intermediate Certificate in Journalism among other media-related certificates. He can be contacted on .
LEGAL DISCLAIMER: This Message Board accepts no liability of legal consequences that arise from the Message Boards (e.g. libel, slander, or other such crimes). All posted messages are the sole property of their respective authors. The maintainer does retain the right to remove any message posts for whatever reasons. People that post messages to this forum are not to libel/slander nor in any other way depict a company, entity, individual(s), or service in a false light; should they do so, the legal consequences are theirs alone. Bizcommunity.com will disclose authors' IP addresses to authorities if compelled to do so by a court of law. | Follow us:
Top stories
ContributorsIndustry news
BizLounge
|
CONTACT US | ABOUT US | SEND US NEWS | ADVERTISING RATES | | +27 (0)21 680 3500 | +27 (0)11 612 3003
ADSL & Web hosting proudly provided by Afrihost. All rights reserved. © 2012. Bizcommunity.com, its sponsors, contributors and advertisers disclaim all liability for any loss, damage, injury or expense that might arise from the use of, or reliance upon, the services contained herein. Privacy policy, Terms of Use, PAIA.