Ethiopian Airlines started talks with the Malawi Public Private Partnership (PPP) Commission with regard to the acquisition of 49 per cent of Air Malawi by Ethiopian Airlines. Ethiopian Airlines CEO , Tewolde Gebremariam, told The Reporter,  the Malawian Privatization Commission invited Ethiopian as a preferred bidder for the privatization of Air Malawi.

Ethiopian Airlines has been named the preferred bidder to take over state-owned Air Malawi. The government of Malawi asked companies to present expressions of interest for the partial acquisition of its failing airline. Subsequently, 11 airlines submitted to the Malawi Privatization Authority, Ernst & Young, has been undertaking a study on the privatization of Air Malawi, which has ceased operations. After evaluating the expression of interest, eight companies were selected to participate in the bid. Three of the eight companies - Ethiopian Airlines, Fly Africa and Global Business Networks - were the finalists.

The Malawi Public Private Partnership (PPP) Commission CEO, Jimmy Lipunga, reports that Ethiopian Airlines scored 67 points, beating Fly Africa of South Africa (61 points) and Global Business Networks of Botswana (59 points.)

“The selection has been largely influenced by the preferred bidder’s global experience and competitiveness. The viability of the restructured Air Malawi will be greatly enhanced through a strategic partnership with a global player. Air Malawi will gain more traffic through international route linkages,” Lipunga said.

Air Malawi’s route network includes five regional and three domestic destinations from its twin hubs of Chileka Airport, in Blantyre, and Kamuzu International Airport, in the capital Lilongwe.

Source: The Reporter