Air Zimbabwe hikes rates by 500%

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By Staff Reporter

ZIMBABWE'S cash-strapped national carrier, Air Zimbabwe, announced fare increases on Monday of up to 500% on both international and domestic routes.

A spokesperson said the airline had no option but to implement the masssive price hikes as a result of surging overhead costs and the high inflation rate.

"The goods and services we use everyday have been going up by at least 150% every month so we had no option but to review our fares upwards," David Mwenga told AFP.

"Prices are literally going up every time you wake up."

As a result of the changes, an economy class return ticket to London will now cost Z$1 865 000 up from Z$358 310 dollars.

London is the main destination for travellers from the former British colony and Air Zimbabwe runs daily flights.

The cost of travelling to the Chinese capital Beijing will now be Z$2.5m up from Z$545 000.

China is becoming an increasingly important destination for Zimbabwe as a result of burgeoning economic ties.

With annual inflation running at more than 1 000%, the relative cost of the fares will rapidly decrease.

Mwenga said Air Zimbabwe pays at least 90% of its costs for spares, fuel, overflying charges, insurance and in foreign currency while only generating only 30% of its revenue in hard currency.

"As a result we are subsidising the travel expenses of our customers," he said.

Air Zimbabwe's fortunes have been flagging in recent years because of shortages of fuel and spare parts, as well as allegations of poor management.

Dwindling tourism numbers have contributed significantly to the carrier's problems as visitors from traditional tourism markets, such as the United States and western Europe, have shunned the southern African country.

Air Zimbabwe acting chief executive officer Oscar Madombwe told members of parliament earlier this year that passenger numbers slumped from one million in 1999 to 23 000 last year.

Fuel shortages forced the national carrier to ground its entire fleet for more than a day in November last year.

Zimbabwe has been experiencing fuel shortages for the past six years blamed on shortages of hard currency. - AFP
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