ADDIS ABABA, Jan. 16(Xinhua) -- Ethiopia's national flag carrier Ethiopian Airlines (ET) announced on Tuesday it had finalized shareholders agreement with the Zambian government to relaunch Zambia Airways.

Zambia has had no national airline since 1994, when its airline, Zambia Airways, was liquidated.

Tewolde Gebremariam, CEO of ET, said the launching of Zambia Airways will enable the travelling public in Zambia and the Southern African region to enjoy greater connectivity options.

He further said the agreement will facilitate the flow of investment, trade and tourism, and contribute to the socioeconomic growth of the country and the region.

ET expects the airline to initially serve national and regional destinations before embarking on international flights.

The expected budget for the first year is estimated at about 30 million U.S. dollars and the airline is expected to start operations this year.

The Government of Zambia will be the majority shareholder with 55 percent and ET will have 45 percent stakes in the airline.

Ethiopian Airlines currently operates and manages Malawi Airlines in southern Africa and ASKY airlines in western Africa.