AirZim recapitalisation needs US$368m

Air Zimbabwe requires US$368 million to recapitalise operations and buy new aeroplanes as it has been incurring high operational costs due to its ageing fleet.

Of the US$368 million required by the national airline for recapitalisation, US$331 million will go towards buying new planes which are necessary to improve competitiveness and profitability of the airline.

Giving oral evidence before the Parliamentary Portfolio Committee on Transport and Infrastructure Development, Air Zimbabwe Acting Board CEO, Mr Edmund Makona said fleet modernisation is a top priority for the company as it is incurring high fuel and servicing costs due to its planes that have outlived their operational life span.

The company recorded a US$44,7 million loss in 2013.

Mr Makona said while high fuel costs are a major cost driver in the global aviation industry, for Air Zimbabwe the situation is compounded by high local prices since it costs between US$1 and US$1,15 per litre of jet A1 locally compared to 89 cents per litre in neighbouring South Africa.

Air Zimbabwe has 10 aircraft but only three are operational while the other seven are grounded.

The airline is currently servicing a Boeing 737 that is undergoing a c-check and a Boeing 767 to boast operational fleet.

The national airline revealed that its recently launched flights on the Harare-Kariba-Victoria Falls routes have been oversubscribed, recording as much as 80 bookings per flight for a 52 seater plane. ZBC