Business / Companies
Govt to take over Air-Zim's $140m debt
24 Oct 2011 at 08:37hrs | Views
The government is expected to take over Air Zimbabwe's $140m debt, although with plans to liquidate it over time, the Herald reported on Monday.
Government would work on cutting the airline's staff and would seek a strategic partner to buy into the national airline.
According to Transport, Communications and Infrastructural Development Minister Nicholas Goche, Cabinet had agreed to partially dispose of the National Handling Services.
"To this end, government must assume Air Zimbabwe's current debt and ring fence the same."
Goche was quoted as saying that once a strategic technical partner was found, proceeds from its equity contribution would be used to liquidate the debt.
He said Cabinet had agreed that there was an urgent need to right size the national airline "into a lean and effective organisation", and Air Zimbabwe would soon start retrenching some of its workers.
Goche said the airline urgently needed to rejoin the IATA bank settlement plan and the IATA clearing house as well as pay ASCENA and other aviation service providers.
Government would work on cutting the airline's staff and would seek a strategic partner to buy into the national airline.
According to Transport, Communications and Infrastructural Development Minister Nicholas Goche, Cabinet had agreed to partially dispose of the National Handling Services.
Goche was quoted as saying that once a strategic technical partner was found, proceeds from its equity contribution would be used to liquidate the debt.
He said Cabinet had agreed that there was an urgent need to right size the national airline "into a lean and effective organisation", and Air Zimbabwe would soon start retrenching some of its workers.
Goche said the airline urgently needed to rejoin the IATA bank settlement plan and the IATA clearing house as well as pay ASCENA and other aviation service providers.
Source - TH
