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Obert Mpofu given a month's ultimatum
28 Mar 2015 at 09:52hrs | Views
Cabinet has given Transport and Infrastructure Development Minister Dr Obert Mpofu a month's ultimatum to revive the national airline by partnering with technical investors.
This comes as Air Zimbabwe is faced with financial challenges and a debt burden of more than $188 million. The airline is embroiled in a multi-million dollar insurance scam involving the company's secretary Mrs Grace Pfumbidzayi and other senior managers who are also appearing in court over the matter.
Minister Mpofu said he was excited by the decision as it opens up new avenues to the revival of the national airline.
"As part of our efforts to improve and recapitalise the national airline, Cabinet at its meeting on March 10, 2015 made the resolution for the turnaround strategy.
"A timeframe of one month was given for the ministry to compile a list of possible technical partners and the criteria for engagement of same," he said in a statement.
Cabinet instructed that a technical partner be considered as a turnaround strategy for Air Zimbabwe.
"This is subsequent to the viability challenges the airline is facing in view of growing competition in the industry and ageing equipment.
"We hope that the airline will be able to attract fresh capital and improve on its competitiveness," said Dr Mpofu.
The decision, he said will result in enhanced efficiency, better services and competitive fares.
It was crucial for Airzim to diversify its operations and consider partnerships with regional and international airlines to increase capacity and revive the ailing airline.
More than $300 million is required to resuscitate the airline.
This comes as Air Zimbabwe is faced with financial challenges and a debt burden of more than $188 million. The airline is embroiled in a multi-million dollar insurance scam involving the company's secretary Mrs Grace Pfumbidzayi and other senior managers who are also appearing in court over the matter.
Minister Mpofu said he was excited by the decision as it opens up new avenues to the revival of the national airline.
"As part of our efforts to improve and recapitalise the national airline, Cabinet at its meeting on March 10, 2015 made the resolution for the turnaround strategy.
"A timeframe of one month was given for the ministry to compile a list of possible technical partners and the criteria for engagement of same," he said in a statement.
Cabinet instructed that a technical partner be considered as a turnaround strategy for Air Zimbabwe.
"This is subsequent to the viability challenges the airline is facing in view of growing competition in the industry and ageing equipment.
"We hope that the airline will be able to attract fresh capital and improve on its competitiveness," said Dr Mpofu.
The decision, he said will result in enhanced efficiency, better services and competitive fares.
It was crucial for Airzim to diversify its operations and consider partnerships with regional and international airlines to increase capacity and revive the ailing airline.
More than $300 million is required to resuscitate the airline.
Source - herald
