The Sunday Mail
Africa Moyo
GOVERNMENT has stepped up efforts to find a suitor for Air Zimbabwe while plans are underway to address the airline’s $298 million debt burden.
An estimated $272 million of the total debt is believed to be owed to local creditors. Transport and Infrastructure Development Minister, Dr Joram Gumbo told The Sunday Mail Business recently that it is critical for Air Zimbabwe to be weaned as Government did not have the resources to continue supporting it.
“At the moment, Government is seized with the issue of looking for partners (for Air Zimbabwe). We want partners to join us so that we return Air Zimbabwe to its yesteryear glories. We don’t have money as Government at the moment so we are looking into the issue of partnerships . . . ,” said Dr Gumbo.
Partnerships are often considered critical in the airline business as they help maximise efficiencies and expand route networks. Market rumours suggest that Qantas Airways Limited – Australia’s flag carrier – and other reputable international airlines seem interested in partnering Air Zimbabwe. Dr Gumbo said Government will address the airline’s debt in order to make it attractive to potential investors.
“Everything is under discussion (debt and partnerships) and we want to see how far Government can go in addressing the issue of Air Zimbabwe’s debt.
“We are still open for discussions and it is being held (the issue) at senior level, at Cabinet or Government level,” he said.
There were earlier indications that Government might take over the debt.
It is envisaged that the new partner will help to replenish the airline’s fleet.
Air Zimbabwe is currently planning to revive the lucrative London-Harare route that was abandoned in 2012 after its aircraft was impounded at Gatwick Airport over a debt. There are also separate initiatives to try to market local services and commodities to the many airlines that presently fly into Zimbabwe.
“We expect them to buy their fuel from here and to buy food from Catercraft and to some extent, we also want to maintain other planes here,” added Dr Gumbo last week.
Catercraft company secretary, Mr Obert Chigariro told The Sunday Mail Business that out of the 16 airlines landing at the Harare International Airport, only South African Airways and Air Zimbabwe buy food from the company.
The country believes that it can benefit more from the open skies policy that is guaranteed by the Yamoussoukro Declaration of 1988.
Through the Declaration, many African countries committed to opening up their markets to other airlines.
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