http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.17Change: 0.13
R/$ = 10.95Change: 0.08
Au 1238.51 $/ozChange: 3.76
Pt 1367.00 $/ozChange: 4.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Nov 02, 2007

Air Malawi in talks with Comair on possible asset sale

Back
Air Malawi|Airport Development|Boeing|Comair|Comair Malawi|Lilongwe Handling Company|Water|Malawi|Airline|Flag Carrier|Malawi Government|Malawi Privatisation Commission|Jimmy Lipunga|Rail|Undule Mwakasungula|Water|Boeing 737-300
Water||||Rail|Water|
air-malawi|airport-development|boeing|comair|comair-malawi|lilongwe-handling-company|water-company|malawi|airline|flag-carrier|malawi-government|malawi-privatisation-commission|jimmy-lipunga|rail|undule-mwakasungula|water|boeing-737300
© Reuse this



The government of Malawi is in talks with South African airline Comair, which is interested in buying some of the assets of Air Malawi, the Southern African country's national flag carrier.

Malawi Privatisation Commission CEO Jimmy Lipunga says Comair has submitted a formal proposal to the Malawi government to launch a new airline called Comair Malawi.

"We are engaged in talks with Comair on Air Malawi. Comair is interested in acquiring air traffic lights from Air Malawi as well as some of the assets," says Lipunga.

He says the assets which Comair is interested in include a Boeing 737-300 aircraft.

If the negotiations come to fruition, Air Malawi will continue operating normally while the government seeks a buyer for the rest of its assets.

The Malawi government is pursuing a passive privatisation pro-cess for Air Malawi, following its failure to strike a deal with a preferred bidder when it advertised the sale of the airline in 2003.

Lipunga says the South African firm plans to roll out its operations in Malawi by December 1 but "this will depend on the progress of the ongoing talks".

He reports that Comair, which was among the firms that expressed an interest in taking over the airline when its sale was advertised in 2003, has since engaged a consultant "to determine some of the issues surrounding the deal".

If the deal goes through, Comair is expected to have an 80% shareholding in Comair Malawi, with the Malawi government owning the remaining shareholding.

The privatisation of Air Malawi will also involve the sale of the company's subsidiaries, such as Lilongwe Handling Company and Airport Development, which are responsible for airport operations.

Lipunga says studies have recommended that these subsidiaries be privatised as separate entities.

A civil society organisation called the Centre for Human Rights and Rehabilitation (CHRR) has, however, advised the government not to sell the airline in order to safeguard national interests.

"As Air Malawi planes fly across the world, they market the coun- try. The airline is, therefore, crucial to the country's efforts to promote its tourism industry abroad," says CHRR executive director Undule Mwakasungula.

Mwakasungula is also concerned that privatising the airline would render most of its employees redundant, as has been the case with other privatised enterprises, such as the national rail operator, Malawi Railways, and textiles giant David Whitehead & Sons.

Over 60 State-owned enterprises have been privatised in Malawi since the onset of the process in 1996.

Besides Air Malawi, the government is currently pursuing the privatisation of the country's biggest parastatal, the Agricultural Development and Marketing Corporation (Admarc), the Electricity Supply Corporation of Malawi, and the Blantyre and Lilongwe water boards.

World Bank-financed consultants have recommended that Admarc be split into two entities: a commercial firm and a government-funded trust to take over the social functions of the grain marketer.

Edited by: Martin Zhuwakinyu
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other News This Week News
The board of UD Trucks Southern Africa (UDTSA) has announced the resignation of MD Jacques Carelse.   Long-time UD employee, corporate planning and marketing GM, Rory Schulz, has been appointed as acting MD while the process started to appoint a new MD. The Japanese...
There is a need to start planning another pumped storage scheme in South Africa. Much work has already been done at a site in the Limpopo province and the project was very close to being put out to tender at one stage. In 2008/9 the National Energy Regulator of South...
The Coega Development Corporation (CDC) is preparing to leverage its strategic coastal position to develop the Eastern Cape economy through proposed aquaculture development zones (ADZs), with a proposed R2-billion project aiming to contribute $278-million to the...
More
 
 
Latest News
SACQSP president Professor Kathy Michell and RICS president Louise Brooke-Smith
Updated 33 minutes ago The South African Council for the Quantity Surveying Profession (SACQSP) and the Royal Institution of Chartered Surveyors (RICS) in London have signed a mutual recognition of professional competence agreement, solidifying the relationship of the two institutions....
Updated 1 hour 30 minutes ago Mali has signed a string of agreements with China totalling about $11-billion, most of it intended to finance two major railway projects linking the land-locked country to the coast, Mali's presidency said. Mali gave few details on the terms of the 34 agreements but...
Updated 1 hour 38 minutes ago Egypt has raised the $8.5-billion it needs to fund a project to expand the Suez Canal, the central bank governor told State television on Monday. Hisham Ramez told Al-Hayat TV that the funds had been raised in just eight days after banks issued investment...
More
 
 
Recent Research Reports
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
Real Economy Insight: Road and Rail 2014 (PDF Report)
This six-page brief covers key developments in the road and rail industries over the past 12 months, including details of South Africa’s road and rail network and prospects for both sectors.
 
 
 
 
 
This Week's Magazine
The board of UD Trucks Southern Africa (UDTSA) has announced the resignation of MD Jacques Carelse.   Long-time UD employee, corporate planning and marketing GM, Rory Schulz, has been appointed as acting MD while the process started to appoint a new MD. The Japanese...
There is a need to start planning another pumped storage scheme in South Africa. Much work has already been done at a site in the Limpopo province and the project was very close to being put out to tender at one stage. In 2008/9 the National Energy Regulator of South...
The Coega Development Corporation (CDC) is preparing to leverage its strategic coastal position to develop the Eastern Cape economy through proposed aquaculture development zones (ADZs), with a proposed R2-billion project aiming to contribute $278-million to the...
Completion of the ongoing construction of the 102 km Zomba–Jali–Phalombe–Chitakale road, in southern Malawi, has been extended from June  to December 15 because of persistent rains and difficulties in paying the contractor. The project is being undertaken by Kuwait's...
The Malawi government has awarded South African firm  Fischer Consortium the  contract to upgrade the Malawi Road Traffic Information System. The Directorate of Road Traffic and Safety Services at Malawi's Ministry of Transport and Public Works says Fischer...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks