Govt seeks partners to invest in Air Zim

31 Jul, 2016 - 00:07 0 Views
Govt seeks partners  to invest in Air Zim

The Sunday News

air zim

Dumisani Nsingo, Senior Business Reporter
THE Government is negotiating with 12 airlines to partner the struggling Air Zimbabwe and inject at least $300 million needed to bring back the company out of trouble.

Transport and Infrastructural Development Minister Dr Joram Gumbo said his ministry has cast its net wide in an effort to find a strategic partner for Air Zimbabwe and further hinted that: “we are making progress and we will be making some announcement very soon”.

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

“You are aware that we are looking for a partner for Air Zimbabwe, we have made it public several times. We are looking for partnerships because we don’t have money for now but we can’t just sit. We have to do something. So Government through Cabinet has agreed that we should look for a partner for Air Zimbabwe. So we are negotiating with about 12 airlines to partner us (Air Zimbabwe) so we have to look at the best way of engaging anyone of them,” said Minister Gumbo.

He, however, could not be drawn to name the 12 airline companies which Government is negotiating with.

As plans are still underway to find a new suitor for Air Zimbabwe, the Government is also saddled with addressing the airline’s $298 million debt burden with an estimated $272 million of the total debt believed to be owed to local creditors.

“As we do that we will continue to talk to other people who can be interested in assisting us in resuscitating Air Zimbabwe,” said Minister Gumbo.

He said funds continue to stall the refurbishment of one Air Zimbabwe’s Airbus (A) 8320 by the South African Airways stating that the country’s airline was 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 non-payment.

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 creditors threatened to seize its planes over debts. It was once the cash cow of the company.
@DNsingo

Share This:

Survey


We value your opinion! Take a moment to complete our survey

This will close in 20 seconds