Business / Companies
Air Zimbabwe risks collapse
01 Dec 2014 at 07:12hrs | Views
AIR Zimbabwe risks collapse if it does not clean up its act as government intends to open up the skies to more airlines, Transport and Infrastructural Development Minister Dr Obert Mpofu has said .
Addressing journalists and the business community after a tour of the Victoria Falls International Airport last week, Dr Mpofu said the national airliner was on the brink of collapse.
He said the company should come up with measures to thrive in the new setup that would see more airlines on local routes.
"Air Zimbabwe brace yourself for a lot of competition. We've helped you a lot and we will continue doing so but brace for competition. We will open the skies for new players to join the sector. If there's anyone who wants to be involved they can apply," said Dr Mpofu.
"Air Zimbabwe was powerful during those days when there were many airlines," Dr Mpofu said, adding: "We hope the coming in of new players will strengthen and perfect the national airliner."
A number of airlines have shown interest in flying into Zimbabwe especially the new look Victoria Falls International Airport which is being refurbished at a cost of $150 million funded by China Exim-Bank.
Airlines landing at Victoria Falls include South African Airways, British Airways Com Air, Namibian Airways and the new low cost Fly Africa.
Dr Mpofu said competition was healthy for the national airliner as it would make it stronger.
"We're helping Air Zimbabwe and new buses are coming to service regional and local routes. We hope Air Zimbabwe will not be negatively affected but be strengthened by competition."
"Obviously there's a need for recapitalisation of the company and acquisition of new equipment. At the moment negotiations are underway and the board will identify the suitable equipment which will be acquired. The company almost collapsed but didn't die," he added.
Dr Mpofu said government had already signed agreements with some airlines that wanted to fly into Zimbabwe while it was already in negotiations with others.
"My ministry has taken a two pronged approach in increasing traffic volumes. We're negotiating Bilateral Air Service Agreements (BASAs) with countries where airlines have shown interest in flying to Zimbabwe and we've signed two with United Arab Emirates and Yemen," he said.
Dr Mpofu said his ministry was also promoting growth of domestic aviation which saw the introduction of Fly Africa.
Meanwhile, Dr Mpofu said government is pleased with progress being made at the Victoria Falls International Airport which when completely refurbished will serve about two million travellers annually.
Engineers said the new terminal building is 50 percent complete while the terminal is 73 percent complete.
The contractor, China Jiangsu, expects to finish most of preliminary work at the terminal like concrete work before the end of the year and start working on the roof early next year.
The project is expected to be completed mid next year.
Engineers briefed the Minister, who was accompanied by his Permanent Secretary Munesu Munodawafa, Minister of State for Matabeleland North Ambassador Cain Mathema, Tsholotsho District Administrator Nosizi Dube who was representing the Provincial Administrator, Hwange DA Tapera Mugoriya, Victoria Falls Mayor Councillor Sifiso Mpofu, Stuart Comberbach who was representing the Chief Secretary Dr Misheck Sibanda, Permanent Secretaries from other Ministries and several government officers and stakeholders.
Addressing journalists and the business community after a tour of the Victoria Falls International Airport last week, Dr Mpofu said the national airliner was on the brink of collapse.
He said the company should come up with measures to thrive in the new setup that would see more airlines on local routes.
"Air Zimbabwe brace yourself for a lot of competition. We've helped you a lot and we will continue doing so but brace for competition. We will open the skies for new players to join the sector. If there's anyone who wants to be involved they can apply," said Dr Mpofu.
"Air Zimbabwe was powerful during those days when there were many airlines," Dr Mpofu said, adding: "We hope the coming in of new players will strengthen and perfect the national airliner."
A number of airlines have shown interest in flying into Zimbabwe especially the new look Victoria Falls International Airport which is being refurbished at a cost of $150 million funded by China Exim-Bank.
Airlines landing at Victoria Falls include South African Airways, British Airways Com Air, Namibian Airways and the new low cost Fly Africa.
Dr Mpofu said competition was healthy for the national airliner as it would make it stronger.
"We're helping Air Zimbabwe and new buses are coming to service regional and local routes. We hope Air Zimbabwe will not be negatively affected but be strengthened by competition."
"Obviously there's a need for recapitalisation of the company and acquisition of new equipment. At the moment negotiations are underway and the board will identify the suitable equipment which will be acquired. The company almost collapsed but didn't die," he added.
Dr Mpofu said government had already signed agreements with some airlines that wanted to fly into Zimbabwe while it was already in negotiations with others.
"My ministry has taken a two pronged approach in increasing traffic volumes. We're negotiating Bilateral Air Service Agreements (BASAs) with countries where airlines have shown interest in flying to Zimbabwe and we've signed two with United Arab Emirates and Yemen," he said.
Dr Mpofu said his ministry was also promoting growth of domestic aviation which saw the introduction of Fly Africa.
Meanwhile, Dr Mpofu said government is pleased with progress being made at the Victoria Falls International Airport which when completely refurbished will serve about two million travellers annually.
Engineers said the new terminal building is 50 percent complete while the terminal is 73 percent complete.
The contractor, China Jiangsu, expects to finish most of preliminary work at the terminal like concrete work before the end of the year and start working on the roof early next year.
The project is expected to be completed mid next year.
Engineers briefed the Minister, who was accompanied by his Permanent Secretary Munesu Munodawafa, Minister of State for Matabeleland North Ambassador Cain Mathema, Tsholotsho District Administrator Nosizi Dube who was representing the Provincial Administrator, Hwange DA Tapera Mugoriya, Victoria Falls Mayor Councillor Sifiso Mpofu, Stuart Comberbach who was representing the Chief Secretary Dr Misheck Sibanda, Permanent Secretaries from other Ministries and several government officers and stakeholders.
Source - chronicle
