PLENARY SESSIONS AND PRESENTATIONS

Unlocking the Potential of Positioning Zambia as an Aviation Hub

This session was moderated by Mr Rodgers Nkandu, Registrar and Chief Executive Officer (CEO) at the ZCILT and the panellists were:

1. Mr Mulonda, Director Flight Safety Standards at the Zambia Civil Aviation Authority (ZCAA)

2. Mr Joseph Mumbi, Director Airport Services at the Zambia Airports Corporation Limited (ZACL)

3. Ms Glyden Mungaila, Vice Chairperson, Board of Airline Representatives of Zambia (and also Country Manager for RwandAir Limited)

4. Mr Abiy Asrat Jiru, Chief Executive Officer (CEO) at Zambia Airways (2014) Limited

The panel discussion was based on responses to questions asked by the building blocks of a strong aviation sector. The Global Aviation Safety Plan (GASP), Global Air Navigation Plan (GANP) and Global Aviation Security (GASeP) Plan which provide benchmark plans and strategies for IATA Member States including Zambia have been revised.

The ZCAA grants fifth (5th) freedom to air carriers, supports air partnerships and innovations and collaborations, all of which are tenets of the Yamoussoukro Convention. It supports implementation to realise the vision of the AfCFTA through the Single African Air Transport Market (SAATM). The future of the Zambian aviation sector looks bright in terms of development and growth and investment

Harry Mwaanga Nkumbula International Airport (HMNIA) in Livingstone and Mfuwe International Airport (MIA) in Mambwe district. All these four (4) are being targeted. Further, the ZACL has taken over operations of 10 provincial aerodromes (however, only seven (7) are currently operational and active). Therefore, Zambia is a key player in the international aviation or air global network. Opportunities arising from the AfCFTA will be seized and the ZACL is ready to establish Lusaka as a regional aviation or air services hub in Southern Africa. The organisation is also expected to handle increased numbers of arrivals and cargo handling. The KKIA is the flagship airport in Zambia.

• What are the opportunities and benefits of operating from 14 airports (four (4) international airports and 10 provincial airports) in Zambia?

In her response to this question, Ms Mungaila reported that there was growth in the number of airlines coming into the country. There is so much potential as so many neighbouring countries in the region are key players. There are so many challenges and constraints, but the Board of Airline Representatives of Zambia (BoARZ) is appreciative of the 2023 LLZ Conference and Exhibition which showcases several experiences and allows for the exchange of best practice. The Zambian airline industry is a beneficiary

• What are the opportunities and challenges as Zambia Airways (2014) Limited transitions into the AfCFTA?

In his response Mr Asrat-Jiru informed the conference that Zambia Airways (2014) Limited was now fullyresurrected and that there were a lot of opportunities with a new business paradigm. After experiencing the worst of the Covid-19 pandemic, there seems to be a bright future with immense opportunities. Zambia Airways (2014) Limited is set to facilitate trade between Zambia and the rest of COMESA and SADC regions. The geographical location for Lusaka is ideal. It lies within 1’000 nautical miles of 11 regional capitals. Hence Lusaka is a natural place for aviation business and is ideal to become an aviation hub. In view of this Zambia Airways (2014) Limited is looking to increase traffic from Zambia to the region and vice versa. The company is appreciative of the licences that have been issued by the ZCAA. The company’s business approach is that it is not only about business, but also competition.

Zambia Airways (2014) Limited has already commenced regional flights and is working at leading the way. The company considers volume as the greatest challenge. Hence there is need to bring more passengers to the airline. This requires incentives to the travelling public (such as incentives for first-time passengers with the airline). From increased volumes, the company will achieve economies of scale. Hence Zambia Airways (2014) Limited is poised to utilise available capacity

• Lusaka Chamber of Commerce and Industry (LCCI) is advocating for Lusaka to become an investment and trade hub. However, the quality of customer service is key to making Lusaka more attractive and ideal. Zambia is competing against other service providers in Nairobi, Johannesburg and other capitals in the region etc. The LCCI is ready to assist the aviation sector in order to improve customer service provision.

In responding to this comment and observation, Mr Mumbi reported that the ZACL had taken note. He also informed the delegates that the ZACL had an ongoing programme of skills development or skills improvement for airport frontline staff

• Livingstone in Zambia has one (1) domestic flight per day, while Victoria Falls in Zimbabwe receives five (5) domestic flights. With this scenario, how is Zambia going to develop and grow tourism?

In response Mr Mumbi outlined that Livingstone’s throughput is on the lower side than Victoria Falls due to existing tourism market dynamics. Hence the ZACL is looking at the possibility of collaborating with stakeholders to effectively market Livingstone as an ideal tourism destination (stakeholders such as Ministry of Tourism (MoT), Zambia Tourism Agency (ZTA), Tourism Council of Zambia (TCZ)) etc

• Are costings favourable in terms of passenger and cargo coming into and going out of Zambia?

In response, Ms Mungaila stated that the industry goal is to ensure that everyone is entitled to affordable fees and rates. However, the cost of the fare is affected by external fundamentals such as taxes. There are several taxes that are charged on the fare at exorbitant rates. The tax regime should be looked into. On the other hand, there are fewer flights going into Mfuwe. On a more positive note, there is now a transit desk at the KKIA that attends to international passengers that are connecting to domestic flights.

Further, the cost of jet A1 fuel is high or steep due to the component of taxes. The transit time between international and domestic flights is a big constraint to the Zambian airline industry. erminal 1 at the KKIA is currently being worked on. The facilities currently do not allow for the smooth transfer of bags from international to domestic flights. This needs to be addressed if making Lusaka an aviation hub has to be realised. This should apply to both domestic and international airlines.

Contributing to the earlier response, Mr Asrat Jiru stated that the Zambian aviation sector was full of opportunities. Therefore, making Lusaka a hub airport should look at addressing issues pertaining to congestion and capacity constraints. Since authorities have already invested in infrastructure, stakeholders are now looking at increasing passenger traffic. There has been a 100 percent increase in passenger traffic between Lusaka and Ndola. Zambia Airways (2014) Limited has created new travellers or passengers and also increased its efficiencies. On the other hand, however, airport fees are extremely high. A family of five (5) is required to pay at least ZMW 2’000 in airport-related fees to travel from Lusaka to Livingstone. Hence airport fees are much higher than road transport charges for the same distance or between Lusaka and Ndola for the same family of five (5). These costs negatively affect the aviation model of profit maximisation.

Notwithstanding these constraints, Zambia Airways (2014) Limited takes serious consideration of environmental issues through the efficient fuel utilisation. The airline is always benchmarking fuel utilisation and sustainable fuel consumption (without prioritising profit at the expense of the planet). The airline industry in Zambia needs support in order to adequately incentivise customers

• Mbala airport is not operational and this has affected the development and growth of tourism in the Northern Circuit. What is being done to operationalise the Mbala airport? Further, what is being done to address the cost of jet A1 fuel?

In response to this observation and question, Mr Mumbi informed the conference that Mbala airport is still in transition from a military to civilian airport. Civilian aviation operations will only commence once this process is completed. This will only commence once minimum ZCAA requirements as well as flight procedures are met and satisfied.

The ZCAA has been lobbying the Government as an interested stakeholder to address the various stakeholder concerns. The picture looks good. Factors that contribute to high fuel price have already been identified. These can be addressed and Government is already looking into this. There is a authorities are serious about addressing these issues.

Similar to the measure of addressing the price of diesel: Government has stopped transporting crude oil from Dar-es-Salaam to Ndola and is now transporting refined diesel or co-mingled fuel. The following closing remarks were made by each of the panellists:

• ZCAA is there to facilitate the implementation of the SAATM and make transportation, travel and logistics seamless across the continent to increase passenger traffic

• ZACL: stakeholders should support the ZACL. With the upgraded infrastructure at all the major airports, capacity to handle cargo, freight and passenger traffic has increased and improved

• BoARZ: there is need for targeted airline incentives in order to grow and increase passenger and cargo traffic and numbers. Flights are coming into Lusaka from all over the world, but there is need to increase and able to deliver

• ZA: Zambia is a champion of air freedom of travel or air traffic. However, this is not yet being utilised by all players in the value-chain such as tour operators, car hire firms etc in order to fully utilise the infrastructure that has been