Dozens of passengers are left stranded as Zambian Airways suspends
operations due to financial trouble.

LUSAKA, ZAMBIA (JANUARY 10, 2009) REUTERS -
Zambia's privately-owned carrier Zambian Airways said on Saturday
(January 10), it had suspended operations with immediate effect, citing high
fuel costs over the last year-and-a-half and the need to restructure its
operations.

The airline said in a notice to passengers at Lusaka airport that it
had experienced difficulties after jet fuel rose 100 percent in the last 18
months, increasing its operational costs by 50 percent.

"This created a lot of problems for Zambian Airways as a growing
business. In the interest of our stakeholders and our employees, we have
decided with immediate effect to suspend all our operations until further
notice," the notice said.

Dozens of passengers flying to South Africa were left stranded at
Lusaka International Airport.

One of the passengers, Joe Kanayi said noone had given passengers any
explanations.

"They haven't even told us anything to talk about the refund. They
just walked out. Nobody is talking or said anything about it, just walked out.
It's really bad," said Kanayi.

Tavala Kayamba who was also scheduled to fly on Zambian Airways, also
complained about the lack of notice from airline staff to their
passengers.

"It's very, very sad because they are supposed to tell us since
in the morning that they are suspending the activities and we were waiting
here since in the morning about six o'clock and they just give the notice
now," she said.

Zambian Airways emerged as the leading national airline after the
state-owned Zambia Airways was placed under liquidation in 1994 but Economic
analyst, Chibamba Kanyama said the airline had been facing problems.
"The airline has had difficulties. We know that it has had
financial difficult challenges. It has had to commit a lot of resources just
for working capital," said Kanyama.

In recent years Zambia has seen the emergence of smaller airlines
mainly operating on local routes, but Zambian Airways was the main carrier
to major hubs in southern Africa including to Johannesburg.

A few months ago, the airline told local media it was facing
operational difficulties after its debt to the state-run National Airports
Corporation (NAC) rose to nearly 2 million U.S. dollars (USD) in parking and
landing fees.

It is not clear when the airline will resume operations.