Business / Companies
Seized Airzim plane not released on Monday
20 Dec 2011 at 03:56hrs | Views
THE Airzim plane that was seized in London last week could not be released yesterday as the money paid to the creditors had not reflected in their accounts by last night.
The airliner was expected in the country today after the debt was settled. Airzim acting chief executive officer Mr Innocent Mavhunga last night also said the plane had a "minor" technical defect that needed attention before it flies back home.
The Boeing 767-200 ER plane was impounded at Gatwick International Airport in London on Monday last week by American General Supplies over a US$1,2 million debt.
The company supplies the national airline with the bulk of its spares. Mr Mavhunga said he did not know why the money had not yet reflected into AGS' account.
"It (plane) is not arriving tomorrow (Tuesday) as expected because it has not been released and we don't know what the challenge is. They told us to check at 6:15 pm (Monday) but they said they had not seen anything but we have deposited the money," he said.
"Apart from that the plane has a minor technical defect that needs to be solved. We are solving that and we will be able to give more information on Tuesday."
The plane, which costs US$144 million, was almost auctioned last week before Government raised all the money needed to settle the debt.
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 airline from collapse and it recently pledged to take over the debt.
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.
The airliner was expected in the country today after the debt was settled. Airzim acting chief executive officer Mr Innocent Mavhunga last night also said the plane had a "minor" technical defect that needed attention before it flies back home.
The Boeing 767-200 ER plane was impounded at Gatwick International Airport in London on Monday last week by American General Supplies over a US$1,2 million debt.
The company supplies the national airline with the bulk of its spares. Mr Mavhunga said he did not know why the money had not yet reflected into AGS' account.
"It (plane) is not arriving tomorrow (Tuesday) as expected because it has not been released and we don't know what the challenge is. They told us to check at 6:15 pm (Monday) but they said they had not seen anything but we have deposited the money," he said.
"Apart from that the plane has a minor technical defect that needs to be solved. We are solving that and we will be able to give more information on Tuesday."
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 airline from collapse and it recently pledged to take over the debt.
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.
Source - TH
