Comair's Malawi Venture 'Part of Africa Expansion'

AIRLINE group Comair's talks with the Malawian government to buy a stake in Air Malawi are part of the group's plans to expand in Africa.

"We see opportunities to work with progressive governments in Africa that realise that they don't need to own their national airline and that they can benefit from the expertise we offer," Gidon Novick, joint CEO of Comair, said yesterday.

Novick said the intention was to set up a new airline in Malawi. Talks between the two parties had been going for more than a year and were progressing well. However, there was still a lot of detail to be thrashed out, including the size of the stake and the capital required to relaunch the struggling airline.

Malawi's deputy transport minister Roy Commsy this week said the government had agreed to sell a 49% stake in the airline to Comair. "Comair wanted 80% but we have insisted that they get 49% and we believe that this is in the best interest of the nation," he said.

The government, which decided to sell Air Malawi in 2000, has said Comair's share in the airline will gradually grow to 80% and the government will guarantee loans for the new company through the issuance of bonds.

Comair has its eye on other opportunities on the continent and was in talks to take over the management of Air Botswana.