News / National
Air Zimbabwe partnership talks collapse
26 Jan 2012 at 06:15hrs | Views
HARARE - Talks between the Zimbabwe government and a strategic partner interested in taking over Air Zimbabwe have collapsed, a senior government official said on Wednesday.
The government announced late last year that it was engaged in negotiations with a potential suitor to take over the struggling parastatal which is among ten entities earmarked for privatization and commercialization, Zimbabwean news agency New Ziana reported.
Air Zimbabwe is facing a myriad of challenges that include an ageing fleet and a huge debt overhang owed to various creditors.
Transport and Infrastructural Development permanent secretary Patson Mbiriri told New Ziana the discussions had collapsed.
"Unfortunately that did not succeed due to certain reasons. At this point in time I cannot go into details of that," he said.
Mbiriri said efforts would continue to finding another strategic partner for the airliner.
He said the government had also not yet finished offloading the National Handling Services (NHS), a subsidiary of Air Zim which provides passenger and cargo handling services.
"We are currently going through the necessary legal processes that have to be done to take it out of Air Zimbabwe," he said.
"We are guided by the indigenization laws of the land in looking for a partner in NHS," said Mbiriri.
Late last year Air Zimbabwe had one of its planes impounded in London by a United States company over a US$2.2 million debt while another one was briefly held in South Africa recently.
The national airliner has been forced to pull out of the lucrative London and Johannesburg routes to prevent similar actions from restive creditors.
The government announced late last year that it was engaged in negotiations with a potential suitor to take over the struggling parastatal which is among ten entities earmarked for privatization and commercialization, Zimbabwean news agency New Ziana reported.
Air Zimbabwe is facing a myriad of challenges that include an ageing fleet and a huge debt overhang owed to various creditors.
Transport and Infrastructural Development permanent secretary Patson Mbiriri told New Ziana the discussions had collapsed.
"Unfortunately that did not succeed due to certain reasons. At this point in time I cannot go into details of that," he said.
He said the government had also not yet finished offloading the National Handling Services (NHS), a subsidiary of Air Zim which provides passenger and cargo handling services.
"We are currently going through the necessary legal processes that have to be done to take it out of Air Zimbabwe," he said.
"We are guided by the indigenization laws of the land in looking for a partner in NHS," said Mbiriri.
Late last year Air Zimbabwe had one of its planes impounded in London by a United States company over a US$2.2 million debt while another one was briefly held in South Africa recently.
The national airliner has been forced to pull out of the lucrative London and Johannesburg routes to prevent similar actions from restive creditors.
Source - New Ziana
