Zimbabwe Airways B777 lease plan hampered by lack of funds

Air Zimbabwe B767

An Air Zimbabwe (UM, Harare Int'l) plans to lease a quartet of B777-200(ER)s from a Malaysia-based lessor is in jeopardy over a lack of financing Zimbabwe's NewsDay has reported.

Quoting sources close to the deal, the paper reports the Zimbabwean government-owned carrier has failed to source the requisite foreign currency needed to secure the aircraft and thus deploy them into service under the Zimbabwe Airways (Harare Int'l) brand.

“Most of the groundwork had been done and what was left was Air Zimbabwe to pay to activate the lease but the airline does not have the money and the shareholder (government) for now has no capacity,” a source told the newspaper.

Though never officially confirmed, Zimbabwe Airways was reported to be a NewCo intended to allow moribund Air Zimbabwe to relaunch itself albeit without its significant debt burden. The four ex-Malaysia Airlines (MH, Kuala Lumpur Int'l) B777s were to be used in relaunching longhaul flights from Harare Int'l to London Gatwick and the Far East, which Air Zimbabwe had avoided, given the likelihood of aircraft seizures on its arrival in the United Kingdom in particular.

In August, Zimbabwean Minister of Transport, Joram Gumbo, cast doubt over the entire project when he confirmed that ahead of the lease's enforcement, Air Zimbabwe's debt, said to stand at USD300 million, would have to be addressed first.

"We don't have money to buy new planes," he told The Zimbabwe Standard. "If we had money, we would have bought already. I said we want to have a partnership, but in pursuing this partnership, I am yet to conclude the deal, because I have to deal with the AirZim debt, which I have placed before Cabinet."

"If I am successful in getting that debt taken over by government, then I will be in a good position to negotiate with those I can have a partnership with."

Source:https://www.ch-aviation.com/portal/news/59342-lack-of-funding-stifling-zimbabwe-airways-b777-lease-plan

Comments

Post a Comment

Popular posts from this blog

Sudan's Badr Airlines and Aloor Airlines partner for Juba ops

Image
Badr Airlines B737-300 Badr Airlines (J4, Khartoum) has resumed flights to South Sudan following the signing of a partnership agreement with South Sudanese operator Aloor Airlines (Juba). The Sudan Tribune reports Badr Airlines is slated to operate flights between the South Sudanese towns of Wau and Juba with an onward sector to the North Sudanese capital Khartoum. The first such service took place early last week using B737 equipment. Badr Airlines last served Juba between 2004 and 2011 when the city was still a part of the Republic of Sudan (today North Sudan). The flights ended in 2011 following South Sudan's independence and the subsequent escalation in tensions between the states over the oil-rich Kordofan border region. Badr Airlines also serves Cairo Int'l and Jeddah internationally with domestic destinations listed as Port Sudan, El Obeid, Damazin, El Fasher, Geneina, and Nyala. It currently operates one B737-300 and four B737-500s. Source:https://www.ch-
muxajax@blogger.com

Ethiopia launches online Entry Visa Application and Issuance

Image
Ethiopian Airlines Logo The e-visa is processed and issued online on a single web page where applicants apply, pay and secure their entry visa online.Once the online application is approved, applicants will receive an email authorising them to travel to Ethiopia and they will get their passport stamped with the visa upon arrival in Addis Ababa. Group CEO Ethiopian Airlines, Tewolde GebreMariam said: "Ethiopia, the oldest independent civilization in Africa and one of the oldest in the world, is endowed with historical places, natural beauty, colourful and diverse cultural activities and various endemic wild animals which are of great interest to international tourists. However; we have not made best use of these natural resources to attract large number of tourists. To this effect, this project is part of a new national initiative to transform the tourism sector in the country. The full commencement of the Online Visa application and issuance system will promote tourism, tr
muxajax@blogger.com

Air Zimbabwe slashes workforce by half

Image
Air Zimbabwe B767-200 Air Zimbabwe (UM, Harare Int'l) has announced that it has retrenched 200 of its 424 staff as it struggles to keep the airline in business. This is the fourth round of retrenchments in eight years, reports Reuters. "We were overstaffed by a lot and we are also trying to weed out people without the right qualifications," said the carrier's Chairwoman, Chipo Dyanda. "The retrenchment is meant to give space to the airline so that we can redeploy the money saved back into the company." According to Nehanda Radio, most of the employees affected were in administrative positions, and all employees have been placed on performance-based contracts. Staff will also be re-trained, "starting with the chief executive officer". No pilots were retrenched in the round. The restructuring program is also aiming to build Harare Int'l as a travel gateway."This restructuring exercise is coming on the backdrop of a strategic plan
muxajax@blogger.com