HARARE- Air Zimbabwe is rushing against time to raise funds to secure the release of a plane that was seized in London before it is auctioned today. Air Zim officials yesterday said they had made “significant” progress in mobilising money to settle the over US$1 million debt over which the plane was impounded.
The Boeing 767-200 was impounded by a US company, American General Supplies, at Gatwick International Airport on Monday. The company supplies the bulk of spare parts to Air Zim.
Air Zim acting chief executive officer Innocent Mavhunga last night said: “We are still mobilising the resources and we have made significant progress though I am not at liberty to divulge what we have. As for the stranded passengers, we are rerouting and refunding where possible. Others are still in hotels.”
Mavhunga said nothing had been communicated to the national airline with regards to today’s pending auction. Air Zim on Monday said Treasury had failed to release funds to bail it out. Last week, another Air Zim plane Boeing 737-500 was grounded by a South African company, Bid Air over a US$500 000 debt.
Bid Air demanded the money for ground handling services rendered to the airline, but later released the plane after negotiations.
Mavhunga told legislators in October that the national airline owes suppliers and other service providers US$137,7 million with US$112,7 million owed to Zimbabwean firms while US$25 million is owed to foreign companies.
Meanwhile in London, SW Radio Africa reports that there was chaos at Gatwick airport beginning Monday night, after Air Zimbabwe cancelled the flight from London at the very last minute saying the plane had been seized.
Frustrated passengers who spent Monday night in hotels around the airport demanded answers from Air Zim officials on Tuesday, but were told no money had been found to settle the debt. Frustration turned to anger and several travellers were reportedly detained by riot police.
Passengers travelling to Zimbabwe for the holidays said they had been allowed to check in on Monday by officials, who already knew there would be no flight to Zimbabwe. The overbooked flight had at least 40 people on standby.
SW Radio Africa presenter Ezra Sibanda was one of the unlucky ones stuck in London. He said his luggage was checked in, then brought back out and passengers were told to find their bags on trolleys. He said the lack of professionalism by Air Zim was appalling.
“What makes it worse is that they checked people in knowing very well that the plane was seized. The reason is they don’t want to refund people money. They don’t have the money,” Sibanda fumed.
Police were called in to intervene as furious travellers with tired and hungry children demanded their money back from officials, who said they only represented Air Zim. The operations manager David Mwenga reportedly ran from Zimbabweans who recognized him.
By Tuesday evening all passengers had been told to contact the airline on Wednesday for an update. They had been given only £10 for food for the two days and those from outside London had no place to go, as they were not given any vouchers for hotels for Tuesday night.
Sibanda said: “I feel sorry for these four ladies I spoke to who are tourists from Australia. They booked their holiday, paid their money and were supposed to be picked up at Harare airport Tuesday morning to take them to Kariba and Vic Falls.”
Sources working for the airline in London told SW Radio Africa that once a customer checks in, Harare has control of the account and no-one in London can facilitate a refund.
A former Air Zim chief executive officer, who spoke on condition of anonymity, said the future of the airline relied on good corporate governance and personnel with relevant skills.
“For instance we have had about four or five lawyers being appointed as CEOs or managers yet they did not have any aviation knowledge,” he said.
He said Government should appoint a board with aviation expertise. He said the board should be allowed to appoint an aviation expert as a CEO who will in turn appoint directors who have an understanding of the aviation industry.
“After those appointments, Air Zim should be able to operate viably and that is when Government can consider taking over the debt, because taking it over now will not solve the underlying problems. After that, one can then look for a strategic partner because the airline’s value would have been improved.
“It’s not possible to go for a partner now when you have a negative balance sheet and if anyone comes now they will get it for a song,” he said. SW Radio Africa/The Herald
