A Foolish Obsession

From Zambian Economist Mon Nov 19 2012, 14:00:00

Government obsession with establishing a national airline continues. Tourism D Minister David Phiri says the tourism sector would not progress without one :

The question of connectivity is a central factor in the development of Zambia's tourism sector. This can only come about where there is a viable national airline. There is consensus in both Government and industry that Zambia needs a viable national airline..

This is economic folly. How is a national airline going to improve connectivity? Basic transport economics suggest that the reason we have limited connectivity from/to Zambia can only be down to three things : (i) poor passenger demand on certain routes; (ii) limited runaway capacity; and, (iii) regulatory constraints. The big one there is passenger demand. If there's long haul passenger demand many airlines will gladly put on the flights. But one thing is certainly true : supply won't create demand.

As things stand there's insufficient demand on long haul routes to run a profitable airline. At present key destinations are already serviced. Where does Mr Phiri think there's demand gap that's yearning to be filled by tourists? His he planning to fly directly to the USA? All tourists coming to Zambia now have options with BA, KLM and Emirates. Where exactly are is hoping to fly this new airline to make money in tourism? Unless Mr Phiri expects the new government airline would run empty and subsidised routes - all paid by taxes of poor Zambians who will never dream of flying abroad!

[view whole blog post ]
 See More    |     Report Abuse


You might also be interested in the following news stories:

Gambia:   Jammeh to Step Down, Adama Barrow Takes Power (news)
Deutsche Welle
20 January 2017

After days of crisis talks and a miltary incursion, Yahya Jammeh has finally ceded power. Tens of thousands of Gambians fled the country for fear of violence. Gambia's ousted President Yahya Jammeh ... [read more]

Zimbabwe:   'Mugabe Renting U.S. $500,000 Dubai Villa' (news)
Zimbabwe Independent
20 January 2017

THE legal dispute over the botched purchase of a US$1,35 million diamond ring between the First Lady Grace Mugabe and Lebanese businessman Jamal Ahmed, has opened a can of worms amid revelations that ... [read more]

Burundi:   Three Lessons About the Crisis From Those Who Fled It (analysis)
African Arguments
20 January 2017

Burundi's 327,000 refugees are not mere victims but also active citizens, many remaining actively engaged in the country's problems. Burundi will soon mark two years since it was propelled into a ... [read more]



blogAfrica is allAfrica.com's platform to help you keep an ear on the African blogosphere. We draw diverse voices from around the world who post regularly and insightfully about African issues. Bloggers, submit your blog's rss-feed!