Air Zim restructuring to begin next year

THE restructuring process aimed at turning around fortunes of the country’s airline, Air Zimbabwe is expected to start early next year, a Cabinet Minister has said.

Transport and Infrastructural Development Minister Dr Joram Gumbo said the Government was in the process of weighing the best possible way of recapitalising Air Zimbabwe.

Air Zimbabwe, which needs about $300 million in new capital has over the past few years been in talks with several potential investors.

“As for Air Zimbabwe, we are making inroads, we might come up with a plan and some agreements by January. We are pursuing two options of either partnering another airline or reviving it on our own, it’s possible,” said Dr Gumbo.

Five months ago, Dr Gumbo said the Government was negotiating with 12 airlines to partner Air Zimbabwe. He, however, could not be drawn to name the 12 airline companies which Government is negotiating with.

Previously, the Government considered taking over the airline’s $300 million toxic debt as a deliberate effort to clean the parastatal’s balance sheet and make it attractive to potential suitors.

Lack of funding continues to stall the refurbishment of one of Air Zimbabwe’s Airbus (A) 8320 by the South African Airways. The country’s airline is financially incapacitated to pay the $1,6 million required by its neighbouring airline.

Air Zimbabwe sent two aircrafts for repairs by SAA early last year and managed to pay for the other one while the other is still holed up in the neighbouring country due to nonpayment.

The continued challenges facing Air Zimbabwe has attracted a number of other airlines who have been eating out into the national airline’s routes.

The country’s most lucrative route, Harare to Johannesburg has seen a number of new players coming in exposing the inability of Air Zimbabwe. In addition a number of companies have been knocking on the Government’s door seeking the approval to service the Harare-London route. Air Zimbabwe has not been servicing the route since 2012 after its Boeing 767 was impounded at Gatwick Airport in London over a US$1,2 million debt with a United States parts supplier.

The aircraft was held at the London airport for more than two weeks before it was released after payment of the debt. It was once the cash cow of the company.

Another aircraft was seized in December 2011 in Johannesburg over a separate unpaid bill resulting in the Harare-Johannesburg route being temporarily shelved. The route has since been resumed. At its peak, Air Zimbabwe used to fly to over 25 regional and international destinations but is currently flying regional routes in southern Africa due to lack of funds to modernise its fleet and pay off creditors.