FlyAfrica debacle continues

01 Nov, 2015 - 03:11 0 Views
FlyAfrica debacle continues

The Sunday News

BUDGET airline, FlyAfrica reportedly owed the Civil Aviation of Zimbabwe, the National Handling Services and other service providers more than $2 million, a situation which resulted in the airline surrendering its licence last week and stopping flights into Zimbabwe.
Although CAAZ and FlyAfrica were not at liberty to disclose the source of the impasse which has grounded the company, sources within the Karase family, which was running the airline, said apart from allegations of externalising money, FlyAfrica was also owing various bodies close to $2 million.

“The Karase family surrendered the operating licence because they felt with the ongoing debt and externalisation issue, this could impede on the safety of operations,” said a source within the company.
FlyAfrica Zimbabwe is a partnership between the Karase family’s Fresh Air and FlyAfrica Limited.

Contacted for comment FlyAfrica Zimbabwe country manager Mr Matipedza Karase said he could not comment on the issue as “certain procedures were still in process” and the family would issue a Press statement in due course.

CAAZ spokesperson Ms Annajulia Hungwe said the debt issue was a business matter between the aviation authority and the airline which would be handled between the two parties. Ms Hungwe added that it was common for an airline to surrender its operating licence.

“This has happened before especially in developed countries where the aviation industry is bigger and where airlines may be facing various operational challenges,” she said but, however, clarifying that safety processes of operations were completely divorced from issues of debts and externalisation of money.

FlyAfrica chief executive officer Mr Adrian Hamilton-Manns confirmed that the airline had also subsequently suspended the Karase family — who are the Zimbabwean partners.

However, in a follow up written response to questions, FlyAfrica dismissed the allegations of the debt claiming that the reports that the airline owes money to CAAZ were incorrect.

Mr Hamilton-Manns said the airline had a good working relationship with NHS and stated that their account was regularly serviced.

“For the period January to September, we have fully paid all passenger charges and landing fees to CAAZ. We have no dispute about payments and the NHS is supportive of us. Although there are some outstanding payments to the NHS these will be settled,” he said.

Mr Hamilton-Manns revealed that charges against an unnamed member of the Karase family were laid on Tuesday 27 October at the Harare Central Police Station CID department.

He said the Zimbabwean partner was suspended within the airline for breach of directoral and fiduciary duties with further charges being anticipated.

“At this stage those items remain with our legal team and our forensic audit team and we cannot comment until that process has ended,” said Mr Hamilton- Mann.

Under corporate law, directors must discharge two primary fiduciary duties namely the duty of care and the duty of loyalty.

The duty of care requires directors to make a business decision based on all available information and act in good faith for the company’s best interest while the duty of loyalty imposes on the board an affirmative duty to protect interests of the company.

The airline started operating in August last year, servicing the Victoria Falls-Johannesburg route. It later expanded to Harare- Johannesburg and Bulawayo Johannesburg routes.

 

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