Airzim debt assumption nears completion

The assumption of the Air Zimbabwe external and local debt by the Government is almost complete following the completion of a validation process, an official has revealed.

In December last year, Cabinet resolved to assume the debt of Air Zimbabwe and to extend its reconstruction period aimed at reviving the State owned airline.

A combination of huge debts, viability problems and a weak balance sheet, saw Air Zimbabwe being placed under a reconstruction administration of Grant Thornton in October 2018 to prevent legal action and the attachment of assets.

“The validation of the debt has been completed. The local (debt) component came to about $349 million and US$30 million being foreign,” Air Zim assistant administrator Mr Tonderai Mukubvu said in an interview yesterday.

“We have made our submission to the Government, which will do its own processes in terms of the Public Debt Management Act but we are almost there.”

The Government has been supporting the airline in an effort to keep it in the skies but these have been negatively affected by Covid-19 induced travel restrictions.

The support includes the acquisition of two long haul aircraft from Malaysia. However, Air Zimbabwe might have to wait a little longer before it brings the two aircraft into service as global aviation industry is likely to remain subdued due to Covid-19, amid fears of the third wave.

Last year, the state-owned airline took delivery of two Boeing 777-200ER acquired from Malaysia and were both earmarked for long overhaul destinations.

However, international travel has been severely curtailed by lockdown measures imposed by many countries to curb the spread of coronavirus.

“We have placed them on long term preservation or parking waiting for the aviation industry to recover,” Mr Mukubvu said recently.

In terms of efficiency, the planes are best for long distances — an average of 13 hours and anything less is uneconomic.

Air Zimbabwe’s roots can be traced back to 1946 when it was known as Central Africa Airways and operated as a joint airline for Nyasaland, Southern Rhodesia and Northern Rhodesia.

This continued until 1967 when the joint operations ceased leading to the formation of Air Rhodesia.

It operated as Air Rhodesia until 1980 when the nation attained independence and adopted the name Air Zimbabwe. The airline operated as Air Zimbabwe Corporation until 1997 when Air Zimbabwe Pvt Ltd was created in terms of the Air Zimbabwe Corporation Repeal Act of 1998.

In 1980, the airline had 18 aircraft and was among major regional and international aviation players. -herald.co.zw