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Air Zimbabwe Suffocates Under Heavy Debt

Posted under Airline News on May 27, 2011 by | 1,725 views

The Air Zimbabwe staff, after going on a strike for quite a long period, caused its very own airline a seemingly irreparable damage which led the airline into a hefty quicksand of debt. What makes the situation even more troublesome is that the International Air Transport Association (IATA) has demanded a heavy deposit of US$1.7 million from Air Zim before they could resume their worldwide financial and flight booking operations.

Earlier this month the airline was suspended by IATA from the system as the aviation body wanted the airline to payback the huge debt of US$280,000. Now the demand by IATA of US$1.7 million put forward is as a penalty of defaulting. The airline’s general manager for Europe, Mr. David Mwenga states that they have never been defaulted before and also that after they had gathered an amount of US$280,000, the bill shop up to nearly US$2 million.

Logo of Air Zimbabwe

However the national airline of Zimbabwe is still operating largely on its own due to the embargo by IATA using its own sites and direct selling. This has caused a drastic fall in revenues of up to 80% due to the loss of confidence by foreign nationals as they longer have the same level of trust as days gone by. The only hope for survival for this ailing airline is the Zimbabwean community itself through whose patriotism the airline seems to be hanging by its coattails, but is this enough as it seems to be spiraling into an abyss with no return in sight at the moment.

As the wise put it; ‘Luck never gives, it only lends!’ now is the time for Air Zim to payback!

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