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By Staff Reporter

ZIMBABWE'S national carrier has reduced flights to international destinations by a fifth and is battling major financial losses and a chronic network shrinkage, an internal report has revealed.

A turnaround strategy report, obtained by AFP, said the airline’s routes shrank from 15 international destinations to nine, while regional destinations dropped from six to a mere one.

“Revenue has also declined... while costs of operations have gone up considerably due to high fuel costs, high interest and inflation rates and the unfavourable exchange rate, ageing equipment and a combination of other factors,” the report said.

As a result the airline was losing 1.2 million dollars (993 000 euros) in potential revenue daily, while the national carrier faced a cumulative debt of 14.6 million dollars, it said.

Inflation in Zimbabwe has rocketed to 502 percent while the Zimbabwean currency has fallen to 77 500 Zimbabwean dollars to the greenback at official rates.

Dwindling tourism numbers have contributed significantly to Air Zimbabwe’s route problems as visitors from the country’s traditional tourist markets such as the United States and the European Union shun the southern African country.

Western tourism numbers have dropped significantly since the 2000 parliamentary polls, which foreign observers claim were rigged to give President Robert Mugabe’s ruling party victory.

The report stated Air Zimbabwe was losing its market share in the region to competitors including British Airways and South African Airways.

The airline was forced last month to ground its fleet after it ran out of jet fuel which resulted in the suspension of its general manager. It said it was planning alliances with various other international airlines to improve its viability.

When contacted, acting chief executive Oscar Madombwe refused to comment on the report.

Transport Minister Christopher Mushowe told AFP, however, that he hoped the airline’s turnaround plan would result in change of fortunes for the carrier.
“We gave the board that document at the end last month so that it can be used in the turnaround plan,” Mushowe said.

“Air Zimbabwe and other various arms of the tourism sector are working together to help and change the fortunes of the industry.” – Sapa-AFP
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