FINANCE Minister Tendai Biti has been warned that he is imperilling the future of Air Zimbabwe after cutting funding to the national airline.

A committee of MPs also warns that it is unsafe to land planes at the Victoria Falls International Airport because of an antiquated instrument landing system.

Biti halted funding to the loss-making airline in his budget last year, stating at the time that Air Zimbabwe – one of 10 state-owned companies targeted for privatisation -- had to find private partners for its operations.

But a new report by the Parliamentary Portfolio Committee on Transport has recommended that Biti restores funding to Air Zimbabwe until its privatisation is complete.

The MPs said: “The committee was informed that there were no allocations made to Air Zimbabwe Holdings since it is one of the ten parastatals earmarked for restructuring though no partner has been identified. Air Zimbabwe need to be assisted as a stop-gap measure, especially with regards to welfare of workers.

“In the interim, the committee observed the need for government to assist Air Zimbabwe Holdings as a stop-gap measure while awaiting proper plans to restructure and to look for partnership.”

Last year, the government was bailing out the troubled airline to the tune of US$3 million per month, with Biti announcing in his budget presentation in December that Air Zimbabwe had made a loss of US$14 million in the first six months of 2009.

The troubled airline was hit by strikes by pilots and cabin staff last year amid revelations that it  is sitting on a US$64 million debt to its international suppliers.

The airline recently requested US$500 million from the government to fund the purchase of four new planes to compliment its ageing fleet.

Meanwhile, the MPs were also critical of Biti’s failure to allocate money for the refurbishment of Victoria Falls Airport which the minister has also left to private partnerships.

The MPs said: “The same applies to Victoria Falls International Airport work programme that is reportedly waiting ‘takers’ for partnership. A stop-gap measure is needed for this important international airport.”

The MPs’ report also carried a dire assessment of a second parastatal, the National Railways of Zimbabwe, which it said needed urgent attention.

The NRZ’s capacity during peak periods a decade ago was to transport more than 18 million metric tonnes of goods, but that is sharply down to the current 4,000 tonnes.