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By Staff Reporter

NATIONAL carrier Air Zimbabwe has suspended flights to Britain fearing its planes will be seized by a European navigation agency over a $2.8 million debt, reports said.

Air Zimbabwe was not immediately available for comment.

The southern African nation is in its 8th year of recession, marked by the world's highest inflation rate, 70 percent unemployment and chronic shortages of food, fuel and foreign currency that has left state companies struggling to repay debt.

The state-run Herald newspaper said the Agency for the Safety of Air Navigation won a court order empowering it to impound the national airline's planes to recover a debt accrued over the past four years.

Airzim chairman Mike Bimha had confirmed the cancellation of flights to London, saying the airline's lawyers and those of the agency were in talks to find an amicable solution, it said.

"As a security measure, our lawyers have advised us to suspend flights pending the discussions," Bimha said. "In the meantime, alternative travel arrangements for our passengers are being sorted out. We are in constant contact with them."

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

Two weeks ago, Air Zimbabwe announced fare increases 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 now cost Z$1 865 000 up from Z$358 310 dollars.

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

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. - Reuters/AFP
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