Peter B. Kaoma, the Managing Director of Zambia Airways, is busy implementing an urgent rescue plan aimed at stemming the national flag-carrier’s financial losses and putting it on a sound commercial footing. He admits that achieving this goal is likely to be an uphill task, but adds that he is never daunted by tough challenges
The sweeping reforms he has initiated during his first year in office include the closure of loss-making international routes and foreign offices, on-going staff retrenchment, cost-cutting on all fronts, and the renegotiation of expensive aircraft leasing contracts.
Zambia Airways has been severely handicapped in recent years by major problems such as management instability, poor financial performance, strong foreign competition and a weak national economy. Zambia has a population of about 8.6 million, earns over 90% of its export earnings from copper, and owes external creditors more than US$7 billion.
The national airline currently operates a fleet of six aircraft consisting of one McDonnell Douglas DC-10-30, two Boeing 737-200s, one Boeing 757 freighter and two ATR-42s. It also occasionally operates a Douglas DC-8 aircraft owned by the Government.
Peter Kaoma, a private businessman and marketer by profession, was brought in to revamp the airline in December, 1991, by Zambia’s new leader, President Frederick Chiluba, who advocates free enterprise and the privatisation of parastatals.
The Government has made it clear that it is not prepared to bankroll the unprofitable flag-carrier – unlike the previous administration. It recently demonstrated its determination to make the airline fend for itself by withdrawing all subsidies. On the plus side, however, it is the Government’s intention to take over all of the flag-carrier’s previously accumulated debts.
Kaoma is a Fellow of the Chartered Institute of Marketing and holds a Post Graduate Diploma in Public Administration from Manchester University in the UK. He underwent an extensive Senior Management Programme with the Hamilton Institute in the USA and is a member of both the British Institute of Management and the Canadian Institute of Marketing.
His work experience dates back to 1956 when he joined Ndola Copper Refinery. He was later transferred to Luanshya Mines. Subsequently, he worked for Mobil Oil Company and Reckit and Coleman. Later, he resigned to go into private business.
He distinguished himself by becoming one of the first Zambians to occupy senior managerial positions in the country’s copper mine industry and private sector.
Initially, there was some local opposition to his appointment as Managing Director of Zambia Airways because he lacked aviation expertise. But he contends that the paramount requirements for the job are adequate management training and exposure, and business experience, which he has.