CAAZ plans to break-even by 2018
THE Civil Aviation Authority of Zimbabwe will aggressively pursue revenue growth initiatives and cost reduction measures with a view to breaking even at the operating level by 2018.
This comes after the authority recorded a net operating loss of $2,2 million in 2016 from a $9,1 million loss recorded in 2015.
CAAZ chairman Thembinkosi Magwaliba told the company’s annual general meeting yesterday that the future for the aviation authority remains bright despite current challenges.
“The authority is intensifying revenue growth and cost reduction measures with a view to achieving operating break-even by 2018.
“The key revenue heads of the Authority are passenger and aircraft movements through our airports and airspace,” said Mr Magwaliba.
CAAZ is the country’s aviation board which oversees all aspects of aviation in the African hinterland.
The authority operates and manages eight airports in Zimbabwe, which are strategically located to serve major tourism destinations in the territory.
At the airports, CAAZ provides the overall management of the facility and has several concessionaires who handle air cargo, passengers, car parking, fuelling, airside shuttle bus, cleaning services and so on.
Mr Magwaliba said capacity use measured in terms of passenger throughput was relatively lower at 25 percent hence the negative impact of the fixed costs resulting in the operating loss.
After factoring exchange gains against borrowing costs, the authority recorded a net surplus of $5,7 million which is an improvement from the net deficit of $3,5 million the previous year.
“We look to the future with great excitement as we pursue multiple revenue generating activities to sustain our business and better execute our statutory mandate.
“Of note is the master marketing plan that emphasises growth and development of non-aeronautical revenue generating activities such as commercial use of land around airports,” said Mr Magwaliba.
To ensure efficiency in all the operations, he said a continuous improvement of the value chain management system will be undertaken.
Mr Magwaliba said debt restructuring will be key in enhancing the statement of financial position.
He said CAAZ is aware of modern tried and tested project funding models under Public-Private Partnerships among others.
“These models will be closely considered for the impending projects such as the Harare International Airport and acquisition of state of the art Radar Surveillance and Air Traffic Control communication systems,” said Mr Magwaliba.