Business / Companies
Air Zimbabwe plane impounded in London
12 Dec 2011 at 20:16hrs | Views
AN Air Zimbabwe plane was on Monday impounded in London by an American company owed over US$1 million. The national airline approached the Ministry of Finance for help, but was told Treasury could not assist.
American General Supplies supplies the bulk of spare parts to Airzim.
This comes barely a week after another Airzim plane Boeing 737-500 was grounded by a South African company, Bid Air. over an outstanding debt.
Bid Air demanded US$500 000 for ground handling services before releasing the plane after negotiations.
Airzim acting chief executive officer Mr Innocent Mavhunga last night confirmed the incident in London, saying they were negotiating for the Boeing 767-200 to be released.
The plane was seized at Gatwick International Airport.
"The plane has been attached by one of our spares suppliers over an outstanding debt which we are negotiating to settle," Mr Mavhunga said.
"The debt has been outstanding for some time now and it has been impounded after we failed to meet the deadline of November 30 to settle it."
Mr Mavhunga said they had been informed through the Ministry of Transport, Communications and Infrastructural Development that Treasury had indicated that it could not assist.
He said it was the responsibility of the shareholder (the Government) to bail out the national airline in times of crisis.
"The plane is supposed to depart London tomorrow (today) evening at 8:30 and we are hopeful that if our negotiations succeed, we will have the plane back," said Mr Mavhunga.
"We are negotiating with the supplier to give us more time to look for the money while on the other hand, the Ministry of Transport is negotiating with the Ministry of Finance."
Mr Mavhunga told legislators in October that the national airline owes suppliers and other service providers US$137,7 million with US$112,7 million being the internal debt.
He said the external debt of US$25 million was owed to IATA clearing house, global distribution system, spares, fuel companies and for navigation fees.
Mr Mavhunga said Airzim needed about US$40 million to clear some of the debts.
Airzim is also failing to pay its workers who have staged intermittent strikes throughout the year.
American General Supplies supplies the bulk of spare parts to Airzim.
This comes barely a week after another Airzim plane Boeing 737-500 was grounded by a South African company, Bid Air. over an outstanding debt.
Bid Air demanded US$500 000 for ground handling services before releasing the plane after negotiations.
Airzim acting chief executive officer Mr Innocent Mavhunga last night confirmed the incident in London, saying they were negotiating for the Boeing 767-200 to be released.
The plane was seized at Gatwick International Airport.
"The plane has been attached by one of our spares suppliers over an outstanding debt which we are negotiating to settle," Mr Mavhunga said.
"The debt has been outstanding for some time now and it has been impounded after we failed to meet the deadline of November 30 to settle it."
Mr Mavhunga said they had been informed through the Ministry of Transport, Communications and Infrastructural Development that Treasury had indicated that it could not assist.
He said it was the responsibility of the shareholder (the Government) to bail out the national airline in times of crisis.
"The plane is supposed to depart London tomorrow (today) evening at 8:30 and we are hopeful that if our negotiations succeed, we will have the plane back," said Mr Mavhunga.
"We are negotiating with the supplier to give us more time to look for the money while on the other hand, the Ministry of Transport is negotiating with the Ministry of Finance."
Mr Mavhunga told legislators in October that the national airline owes suppliers and other service providers US$137,7 million with US$112,7 million being the internal debt.
He said the external debt of US$25 million was owed to IATA clearing house, global distribution system, spares, fuel companies and for navigation fees.
Mr Mavhunga said Airzim needed about US$40 million to clear some of the debts.
Airzim is also failing to pay its workers who have staged intermittent strikes throughout the year.
Source - TH
