THE government is currently fighting to save Air Zimbabwe from total collapse as the national airline requires at least US$20 million to keep its aircraft flying, a Cabinet minister has said.
Transport, Communications and Infrastructural Development Minister, Nicholas Goche, said that the $20m required only covered recurrent expenditure such as fuel, Zimbabwe's Herald Online reported on Tuesday.
It did not include US$8m retrenchment packages for workers and other international statutory obligations.
“If we get a minimum of $20 million, that would be enough for the airline to clear its short term expenses like buying fuel when they want to fly while we, as shareholders, are looking for other strategies to ensure they will remain viable,” Goche said.
The minister revealed this at Parliament on Monday. He was giving oral evidence before a parliamentary portfolio committee on transport.
He said a Cabinet committee set up to look into the national airline had recommended that a technical partner be found for Air Zimbabwe.
The major challenge for Air Zimbabwe was that its revenue was less than its overhead costs, making it run a negative balance sheet.
“The airline was making losses even during the Zimbabwe dollar era and the Boeing 767s were so old that passengers needed planes with reclining seats and in-flight entertainment, which were not available at Air Zimbabwe,” the minister said.
The airline received a welcome fillip recently when three of its aircraft which had been grounded over safety fears were cleared to fly.
The development will enable Air Zimbabwe to resume its domestic and regional services.