Air Zim leases two Boeing 777-200 ERs

National flag carrier, Air Zimbabwe, said it is dry leasing its two long-haul Boeing artifact acquired from Malaysia.

“Air Zimbabwe wishes to dry lease the two B777-200ER aircraft for a minimum period of two years on a ‘where is and as is’ basis,” Air Zimbabwe said in a statement.

“Air Zimbabwe now invites eligible leasing firms to indicate their interest in providing the dry lease services.”

A dry lease is the leasing of an aircraft without any crew members. Types of dry leases include rental agreements and, in aircraft trust arrangements, operating agreements.

In 2020, Air Zimbabwe said it was planning to lease the two long-haul Boeing 777–200 ERs acquired from Malaysia to give it time to re-establish a strong domestic and regional network. The revenues from leasing the planes will also help Air Zimbabwe to raise funds to acquire smaller planes to service domestic and regional routes.

The B777-200ER is a long overhaul aircraft, which at best performance can fly a minimum of 10 hours nonstop. According to experts, it is more profitable for Air Zimbabwe to lease the planes than rush to establish international routes, which are too expensive to develop.

Since route development is too costly in the initial stages, leasing the planes would allow Air Zimbabwe to self-recapitalise as it can generate between US$300 000 and US$400 000 per month.

Proceeds from the lease of the aircraft will be directed towards the acquisition of narrow-bodied aircraft that will assist in strengthening domestic and regional networks.

-ebusinessweekly