Business / Local
Air Zimbabwe refurbishment stalls
24 Jan 2016 at 06:09hrs | Views
NATIONAL airline Air Zimbabwe is struggling to raise $1,6 million needed by South African Airways for the refurbishment of one of the two A320 airbuses which were set to increase the company's capacity and efforts to open new routes.
Transport and Infrastructural Development Dr Joram Gumbo said in an interview that Air Zimbabwe was financially incapacitated to pay the money required by SAA to repair one of the two A320 airbuses that were sent by the airline early last year.
"The other plane came sometime ago but at the moment Government doesn't have money to pay for the refurbishment of the other plane which is undergoing checks. Of course we need it to be back because we have many routes which it can ply," Dr Gumbo said.
The airline is flying four out of its 10 aircrafts and intends to introduce domestic flights to Buffalo Range, Hwange and the Lowveld in a bid to widen revenue inflow. Air Zimbabwe requires over $200 million for recapitalisation as debt continues to blight the airline's turnaround strategy.
However, Government has approved the engagement of a technical partner to assist in resolving the financial and equipment challenges faced by the parastatal.
Addressing Air Zimbabwe officials, Dr Gumbo was quoted by the local press as having said Cabinet had approved that the airline should engage a partner.
"The ministry is aware of your financial and equipment challenges, and to that effect I have submitted a paper to Cabinet on the engagement of a technical partner for the airline. Cabinet has approved the concept in principle, but we now await guidance on finer details of our proposal. Once approved, I urge both management and the board to work closely with the Ministry for speedy conclusion of the matter. That will resolve the perennial challenge of the need for fleet modernisation," Dr Gumbo said.
Acting Air Zimbabwe chief executive officer Mr Edmund Makona could not be reached for a comment as he was invited by Cameroon Airlines for the launch of its A320 aircrafts yesterday.
Once the pride of the nation, Air Zimbabwe has seen its fortunes wane over the years resulting in the company stopping plying some of its traditional routes. A number of new airlines are also eating out into previous routes which were once dominated by Air Zim.
Transport and Infrastructural Development Dr Joram Gumbo said in an interview that Air Zimbabwe was financially incapacitated to pay the money required by SAA to repair one of the two A320 airbuses that were sent by the airline early last year.
"The other plane came sometime ago but at the moment Government doesn't have money to pay for the refurbishment of the other plane which is undergoing checks. Of course we need it to be back because we have many routes which it can ply," Dr Gumbo said.
The airline is flying four out of its 10 aircrafts and intends to introduce domestic flights to Buffalo Range, Hwange and the Lowveld in a bid to widen revenue inflow. Air Zimbabwe requires over $200 million for recapitalisation as debt continues to blight the airline's turnaround strategy.
However, Government has approved the engagement of a technical partner to assist in resolving the financial and equipment challenges faced by the parastatal.
"The ministry is aware of your financial and equipment challenges, and to that effect I have submitted a paper to Cabinet on the engagement of a technical partner for the airline. Cabinet has approved the concept in principle, but we now await guidance on finer details of our proposal. Once approved, I urge both management and the board to work closely with the Ministry for speedy conclusion of the matter. That will resolve the perennial challenge of the need for fleet modernisation," Dr Gumbo said.
Acting Air Zimbabwe chief executive officer Mr Edmund Makona could not be reached for a comment as he was invited by Cameroon Airlines for the launch of its A320 aircrafts yesterday.
Once the pride of the nation, Air Zimbabwe has seen its fortunes wane over the years resulting in the company stopping plying some of its traditional routes. A number of new airlines are also eating out into previous routes which were once dominated by Air Zim.
Source - sundaynews
