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'Subsidise Air Zimbabwe or it will sink,' says Mzembi
02 Jun 2014 at 02:31hrs | Views
Tourism and Hospitality Industry minister, Walter Mzembi says unless the national airliner, Air Zimbabwe is subsidised, it would continue to make losses and harm the tourism sector.
In a question and answer session in the national House of Assembly on Wednesday, Mzembi said Air Zimbabwe required subsidies for survival.
"Out of my experience as the minister of Tourism and Hospitality Industry, now running into the seventh year, I have not ascertained any particular airline in Africa, a national carrier that is viable at operational level unless if it is subsidized by the state. Borrowing from the South African model, recently they were subsidised to the tune of billions and billions of rands by the state to keep South African Airways afloat.
"I would like to think that the Government of Zimbabwe can make a decision to say that we need a viable airline. That is a decision that I think we should also make as Zimbabwe that we need a viable national airline and come up with a model that supports the national airline,
Mzembi suggested that tourism income and income from other various elements of the economy could be put into Consolidated Revenue Fund to support the national airline and keep it afloat.
"Going forward, perhaps that is what we need to do and understand that at best, Air Zimbabwe shall operate at break-even level for a long time if it succeeds; otherwise it would be a loss-maker for quite a long time," he said.
Mzembi said the poor performance of the airliner would affect the tourism sector.
In a question and answer session in the national House of Assembly on Wednesday, Mzembi said Air Zimbabwe required subsidies for survival.
"Out of my experience as the minister of Tourism and Hospitality Industry, now running into the seventh year, I have not ascertained any particular airline in Africa, a national carrier that is viable at operational level unless if it is subsidized by the state. Borrowing from the South African model, recently they were subsidised to the tune of billions and billions of rands by the state to keep South African Airways afloat.
"I would like to think that the Government of Zimbabwe can make a decision to say that we need a viable airline. That is a decision that I think we should also make as Zimbabwe that we need a viable national airline and come up with a model that supports the national airline,
Mzembi suggested that tourism income and income from other various elements of the economy could be put into Consolidated Revenue Fund to support the national airline and keep it afloat.
"Going forward, perhaps that is what we need to do and understand that at best, Air Zimbabwe shall operate at break-even level for a long time if it succeeds; otherwise it would be a loss-maker for quite a long time," he said.
Mzembi said the poor performance of the airliner would affect the tourism sector.
Source - Zim Mail
