TALKS between the government and an un-named strategic partner interested in taking over Air Zimbabwe have collapsed, a senior government official confirmed Wednesday.

The government announced late last year that it was engaged in negotiations with a potential suitor to take over the struggling parastatal which is among ten entities earmarked for privatisation and commercialisation.

However, Transport and Infrastructural Development permanent secretary, Patson Mbiriri told New Ziana the discussions had collapsed.

"Unfortunately that did not succeed due to certain reasons. At this point in time I cannot go into details of that," he said without naming the potential investor.

Officials revealed that President Robert Mugabe met executives at a Chinese airline during a visit to the country last November to discuss a possible investment in Air Zimbabwe which is faces a myriad of challenges including an ageing fleet and huge debts.

Air Zimbabwe owes various creditors about US$140 million and also faces possible liquidation after restive workers – said to be owed US$35 million -- sought to have the airline placed under judicial management.

Two of the company’s aircraft were briefly seized by creditors in South Africa and the United Kingdom last year forcing the airline to pull out of the lucrative Johannesburg and London routes.

Meanwhile, Mbiriri said efforts would continue to finding another strategic partner for the airliner.

He added that the government had also not yet finished offloading the National Handling Services (NHS), a subsidiary of Air Zimbabwe which provides passenger and cargo handling services

"We are currently going through the necessary legal processes that have to be done to take it out of Air Zimbabwe," he said.

"We are guided by the indigenization laws of the land in looking for a partner in NHS," said Mbiriri.