Malawi Airlines (3W) has confirmed its resumption of services after obtaining an undisclosed bailout from its majority shareholder. An agreement was reached by the Malawi government and Ethiopian Airlines to recapitalize the airline, following the Malawi flag carrier being declared technically insolvent, according to Nyasa Times.
The airline will resume its services from mid-June with flights to Dar Es Salaam, Nairobi, Lusaka, Harare and Johannesburg operated from its hub, Lilongwe and Blantyre.
3W which is 51 percent owned by the government and 49 percent owned by Ethiopian Airlines halted its operations in April following a pandemic related decline that resulted in revenue loss for the airline.
“The insolvency was mainly occasioned by the seven months period the airline had no revenue when it was not in operation due to local and international lockdowns as a result of the CoVID-19 pandemic while it was still honouring significant fixed cost obligations.”
“The Board of Directors applaud the shareholders for their wise and timely decision to bail out the national airline, effectively allowing the company to resume flights to destinations such as Dar es Salaam, Nairobi, Lusaka and Harare, effective mid-June 2021,” said the board chairman George Partridge during a press statement.
By Victor Shalton Odhiambo
