Business / Companies
UK Impounded Airzim plane expected home on Tuesday
18 Dec 2011 at 19:20hrs | Views
THE national carrier, Air Zimbabwe's plane that was seized in London on Monday last week should be released on Monday this week and is expected in Harare Tuesday morning, an official has said.
American General Supplies impounded the Boeing 767-200ER at Gatwick International Airport over a US$1,2 million debt.
Airzim acting chief executive officer Mr Innocent Mavhunga said funds deposited into the account of the US-based spares supplier should reflect today and that should be followed by the release of the plane in the evening.
The national airline gets the bulk of its spares from the AGS.
Government bailed out Airzim when it raised all the money needed after threats that the plane, which costs US$144million, would be auctioned if the debt was not settled.
"The money has been deposited and we expect it to reflect today and we hope our plane will depart tomorrow evening (today) and land in the country on Tuesday morning.
"Everything is settled for now, but you would never know with the publicity the case has developed, other complications might develop.
"It is our hope that nothing will arise and our plane flies back," Mr Mavhunga said.
Stranded passengers had to be either reimbursed or re-routed, while others were booked in hotels pending the finalisation of the matter.
The Finance Ministry has refused to bail out the airline, saying the Government had no money to spend on the loss-making airline.
Airzim has been making losses due to a number of reasons among them dilapidated equipment and high employment costs.
The airline has been saddled with relentless problems, among them staff strikes that forced the company to hire planes to take care of its travellers.
The company is facing viability challenges with debts now believed to be over US$140 million.
Government is, however, making frantic efforts to save the airliner from collapse and it recently pledged to take over the debt.
The State considers Airzim a strategic Government asset and brand that needs to be preserved and supported.
Government is currently looking for a strategic partner.
The airline suspended flights to South Africa recently in fear of creditors and is now depending on its domestic flights for survival.
It owes a South African company, Bid Air US$500 000.
Two weeks ago, the firm grounded another Airzim plane over the outstanding debt.
The plane was later released after negotiations between Bid Air and Airzim management.
As part of Government efforts to save the airline, last month President Mugabe met Chinese aviation officials to follow up on progress on the possibility of a joint venture with one of the large Chinese airlines.
The President met officials from Hainan Airlines and the Chinese are still studying aspects of the proposal.
American General Supplies impounded the Boeing 767-200ER at Gatwick International Airport over a US$1,2 million debt.
Airzim acting chief executive officer Mr Innocent Mavhunga said funds deposited into the account of the US-based spares supplier should reflect today and that should be followed by the release of the plane in the evening.
The national airline gets the bulk of its spares from the AGS.
Government bailed out Airzim when it raised all the money needed after threats that the plane, which costs US$144million, would be auctioned if the debt was not settled.
"The money has been deposited and we expect it to reflect today and we hope our plane will depart tomorrow evening (today) and land in the country on Tuesday morning.
"Everything is settled for now, but you would never know with the publicity the case has developed, other complications might develop.
"It is our hope that nothing will arise and our plane flies back," Mr Mavhunga said.
Stranded passengers had to be either reimbursed or re-routed, while others were booked in hotels pending the finalisation of the matter.
The Finance Ministry has refused to bail out the airline, saying the Government had no money to spend on the loss-making airline.
Airzim has been making losses due to a number of reasons among them dilapidated equipment and high employment costs.
The airline has been saddled with relentless problems, among them staff strikes that forced the company to hire planes to take care of its travellers.
The company is facing viability challenges with debts now believed to be over US$140 million.
Government is, however, making frantic efforts to save the airliner from collapse and it recently pledged to take over the debt.
The State considers Airzim a strategic Government asset and brand that needs to be preserved and supported.
Government is currently looking for a strategic partner.
The airline suspended flights to South Africa recently in fear of creditors and is now depending on its domestic flights for survival.
It owes a South African company, Bid Air US$500 000.
Two weeks ago, the firm grounded another Airzim plane over the outstanding debt.
The plane was later released after negotiations between Bid Air and Airzim management.
As part of Government efforts to save the airline, last month President Mugabe met Chinese aviation officials to follow up on progress on the possibility of a joint venture with one of the large Chinese airlines.
The President met officials from Hainan Airlines and the Chinese are still studying aspects of the proposal.
Source - TH
