19 August 2017
   
Chombo declares Robert Mugabe Day!
Grace remains out of sight amid assault claims
Please help me market Zim! Mzembi to editors
Mliswa says no more Zezuru president
SA borders on red alert for Grace Mugabe
MDC youths take reforms protests to villages
Supa illegally altered cyber crime bill?
Mugabe sons: ticking PR time bombs
MORE NEWS
CABS housing scheme uptake remains low
Zimre sells Nicoz stake to NSSA
MORE BUSINESS
Churches at 2017 Byo Intwasa festival
Exiled artist in poetry against rights abuses
MORE SHOWBIZ
Dangote to fire Wenger if he buys Arsenal
Caps passes Platinum test, wins 2-1
MORE SPORTS
A view: Grace Mugabe & diplomatic immunity
Mugabe not Nkomo was bent on Civil War
MORE OPINION
 
Yesterday’s ogres & restorative justice
MDC needs Mawarire, Mahere, Mkwananzi
MORE COLUMNISTS
 
 
Government assumes Air Zim’s US$140m debt
24/10/2011 00:00:00
by Staff Reporter
 
Rescue bid ... Nicholas Goche
 
RELATED STORIES
Chinese airline in Air Zim talks
Minister's fury over AirZim downgrade
Air Zim resumes Beijing, London flights
Air Zimbabwe courts foreign partners
Fuel dispute grounds Air Zimbabwe
Air Zimbabwe re-opens London route
Storm-flying pilot gets wings back

THE government will assume responsibility for Air Zimbabwe’s $140 million debt in a bid to help the technically insolvent flag-carrier back on its ‘wings’, Transport Minister Nicholas Goche has said.

The airline has been crippled by numerous operational problems including mounting debts, ageing aircraft, undercapitalisation and labour disputes with key staff.

Goche said the government had agreed to takeover the debt and help find the company a technical partner.

“Last Thursday Cabinet … resolved that, Air Zimbabwe as a strategic Government asset and brand, needed to be preserved and supported as a going business concern,” Goche told The Herald.

“To this end, Government must assume Air Zimbabwe's current debt (currently standing at US$140 million) and ring fence the same."

Air Zimbabwe chief executive, Innocent Mavhunga recently urged government to help liquidate the airline’s huge debt pile comprising $112.7 million internal obligations and $25 million owed to institutions outside the country.

“Our cost of operating the business sits at about $6 to $7.5 million,” Mavhunga told Parliament’s Portfolio Committee on State Enterprises and Parastatals at a recent hearing.

Meanwhile, Goche said proceeds from the planned part-privatisation of the airline would be used to offset the debt while staff numbers would also be reduced to cut operating costs.

"In order to realise additional financing, there is urgent need to find a strategic partner for the national airline through private placement, that is, directly approaching would-be interested investors and forming a joint venture partnership," he said.

In addition, the National Handling Service (NHS), a subsidiary of the airline, would also be privatized to secure additional funds.

"Efforts to partially dispose of the National Handling Services should be pursued with urgency now in order to secure some financing from within the airline in order to avoid overburdening Treasury,” Goche said.



Advertisement


 
Email this to a friend Printable Version Discuss This Story
Share this article:

Digg it

Del.icio.us

Reddit

Newsvine

Nowpublic

Stumbleupon

Face Book

Myspace

Fark

 
 
 
comments powered by Disqus
 
RSS NewsTicker