TINASHE MAKICHI
Air Zimbabwe administrator, Reggie Saruchera, has vowed to work magic which will see the national airliner regain its wings.
Saruchera, a managing partner at Grant Thornton and Camelsa, was recently appointed as the administrator for the struggling Air Zimbabwe.
The national airliner was placed under reconstruction due to continuous failure to generate profits to remain commercially viable.
Under general notice 758 of 2018 published in the Government Gazette last month, Justice Minister Ziyambi Ziyambi issued a reconstruction order in relation to Air Zimbabwe Limited and Air Zimbabwe Holdings Private Limited.
In an interview with Business Times, Saruchera said the real work to revive the airline begins now, despite several hurdles, but believes he is equal to the task.
“The real work to revive Air Zimbabwe starts now after our appointment as the administrators of the national airliner was gazetted. The revival of Air Zimbabwe is possible and I promise results on this job because we have done it before. The revival of Air Zimbabwe is certain,” Saruchera said.
Air Zimbabwe is one of the country’s critical parastatals that government wants revived given its central role in economic turnaround, particularly from the perspective of bringing tourists into the country. Tourism is seen as a low hanging fruit that can help turn around the economy.
The flag carrier is currently saddled with a $341 million foreign and domestic debt which has been accumulated over a decade of mismanagement. The inability to repay the debt has left the airline in a quandary as its now stripped of its international aviation privileges.
It is estimated that Air Zimbabwe’s passenger numbers has gone down to about 230 000 per annum over the past few years, from a peak of one million in 1996, with travellers looking for alternative airlines across all the domestic destinations.
The national airline is still in the wilderness where it continues to incur losses. In 2011, Air Zimbabwe’s Boeing 737-500 was impounded in South Africa after failing to settle a $500 000 debt owed to Bid Air Services for ground handling services.
The Boeing 767-200 was also seized by American General Supplies in London over a $1,2 million debt in the same year. It is believed that is the reason why the airline pulled out of flying to London, one of its most lucrative destinations.
Air Zimbabwe was suspended from International Air Transport Association (IATA), a situation which has made it difficult for Air Zimbabwe to fly to international destinations.
IATA is the trade association for the world’s airlines, representing some 275 airlines or 83 percent of total air traffic. The association supports many areas of aviation activity and helps to formulate industry policy on critical aviation issues.
As part of the revival strategy, Transport and Infrastructural Development Minister, Joel Biggie Matiza, recently noted that Air Zimbabwe and Zimbabwe Airways would be merged to form one entity, as both are state-owned enterprises and will play a critical role towards reviving the country’s ailing aviation sector.
Government has since identified challenges in the transport and infrastructure sector, and has crafted initiatives meant to address these challenges specifically in areas which include policy regulation, road transport management, road infrastructure, inland waters, aviation, rail transport and region integration.
“I would like to inform the nation that Zimbabwe Airways is a Government entity and my Ministry is working towards finalisation of the purchase agreement of the four Boeing 777 (B777), aircraft recently procured.
“In addition, Government is securing the smaller Embraer aircraft in other deals still being negotiated, for the servicing of domestic routes. It is important to note that Air Zimbabwe does not have an adequate aircraft fleet mix. With the new aircraft in place, Government intends to merge Air Zimbabwe and Zimbabwe Airways to complement one another. In this regard, the smaller aircraft will service domestic routes, A320s for regional routes and the B777 will service international routes,” said Matiza.
