Air Zimbabwe posts first profits in 10 years

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By Staff Reporter

AIR ZIMBABWE has made its first profit in a decade, a parliamentary committee heard Monday.

Mike Bimha, the board manager of Zimbabwe's national airline told a committee of MPs that the profit was made in December 2006
after they implemented a turnaround plan in July 2005.

He said the turnaround strategy was crafted in 2004.

“We expected some achievement and in December 2006, for the first time in 10 years, we made a small profit merely covering our costs,” Bimha told the Parliamentary Portfolio Committee on Transport and Communications.

The board chairman did not give figures to the committee that is chaired by Zanu PF Makonde MP Leo Mugabe. Opposition MPs including Kuwadzana legislator, Nelson Chamisa, as well as Tsholotsho MP, Jonathan Moyo, sit on the committee.

Bimha claimed Air Zimbabwe was "giving South African Airways a run for their money".

Asked by MPs how they could be relying on a strategy formulated in 2004, Bimha said there had been delays in the approval of the plan.

He added that delays were also caused by the departure of their previous chief
Executive Officer.

“As a board there are some things that we could not do without the CEO because of corporate governance issues,” he said.

Bimha however said there would be some adjustments that would be made in line with “current trends”. He said the 2004 document would remain their guiding map.

New CEO Peter Chikumba said he would consult MPs in coming up with a new
blueprint.

Chikumba also said he would provide MPs with a schedule of their visit to the
airline for purposes of assessing operations at Air Zimbabwe before Friday.

The committee also heard that Transport and Communications Minister Chris
Mushohwe had apologised to MPs for an earlier botched visit that lawmakers said had angered them.

Details of what happened during the MPs' visit were not made public.

Air Zimbabwe has posted major losses in recent years. Twice last year, two of the airline's planes were grounded in London after the company failed to settle its landing fees.

The country's central bank recommended recently that the government should sell-off Air Zimbabwe and other loss-making parastatals.
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