Business / Companies
AirZim to settle debt of $1,2 for the impounded plane to be released
15 Dec 2011 at 14:25hrs | Views
A U.S. aviation firm, American General Supplies (AGS) owed $1,2 million by Air Zimbabwe, says it is not release the airline's impounded Boeing 767-200 jet until they settle their debt.
The United States firm impounded the aircraft, a Boeing 767 at Gatwick International Airport on Monday for the long-standing debt.
AGS marketing director Kenneth Connor's said they have been in talks with AirZim and are expecting debt settlement by end of day today [Thursday].
Connor said the payment has to be forthcoming before they release the plane.
According to AGS they were forced to take legal action both in the American and British courts after the payment had taken too long to settle.
On Wednesday they were reports that the impounded plane was likely to be auctioned if the airline hadn't settled the debt. Connor said: "I do not believe that we are going to auction the plane since we are hopeful the payment will come through."
He said though they have good relations with the airline, there have been bill settlement problems for the past three years.
"The problems started in 2009 and in July 2010 we signed an agreement with the (Air Zimbabwe) CEO for the payment to come through, they did for a few months and then stopped up till now," the AGS marketing director said.
AGS is a commercial aircraft spare parts supplier to the aviation industry whose customer base cuts across the gamut of reputable airlines in Africa and the Middle East, Europe, the Far East and North America.
Passengers were reported to have spent Tuesday night at Gatwick Airport while the airline scrambled to raise cash for the release of its impounded long-haul aircraft.
They accused the airline of abandoning them as they were left stranded at the airport.
Innocent Mavhunga, the acting Air Zim chief executive, yesterday said the plane is not going to be auctioned because AirZim was in the process of getting the funds from the ministry.
The United States firm impounded the aircraft, a Boeing 767 at Gatwick International Airport on Monday for the long-standing debt.
AGS marketing director Kenneth Connor's said they have been in talks with AirZim and are expecting debt settlement by end of day today [Thursday].
Connor said the payment has to be forthcoming before they release the plane.
According to AGS they were forced to take legal action both in the American and British courts after the payment had taken too long to settle.
On Wednesday they were reports that the impounded plane was likely to be auctioned if the airline hadn't settled the debt. Connor said: "I do not believe that we are going to auction the plane since we are hopeful the payment will come through."
He said though they have good relations with the airline, there have been bill settlement problems for the past three years.
"The problems started in 2009 and in July 2010 we signed an agreement with the (Air Zimbabwe) CEO for the payment to come through, they did for a few months and then stopped up till now," the AGS marketing director said.
AGS is a commercial aircraft spare parts supplier to the aviation industry whose customer base cuts across the gamut of reputable airlines in Africa and the Middle East, Europe, the Far East and North America.
Passengers were reported to have spent Tuesday night at Gatwick Airport while the airline scrambled to raise cash for the release of its impounded long-haul aircraft.
They accused the airline of abandoning them as they were left stranded at the airport.
Innocent Mavhunga, the acting Air Zim chief executive, yesterday said the plane is not going to be auctioned because AirZim was in the process of getting the funds from the ministry.
Source - Byo24News
