SAA to benefit as Air Zimbabwe faces bankruptcy

Workers at Air Zimbabwe have successfully won a high court application to have the airline placed under judicial management, which will now see its affairs handled by a judicial manager, Innocent Mavhunga, and not the airline’s board.

South African Airways (SAA) and Emirates are set to cash in on the woes that have gripped Zimbabwe’s state-owned airline, Air Zimbabwe, which yesterday was placed under judicial management because of a $140m debt.

Workers at the embattled airline successfully won a high court application to have the airline placed under judicial management, which will now see its affairs handled by a judicial manager, Innocent Mavhunga, and not the Air Zimbabwe board.

At the heart of the court intervention is a salary dispute between Air Zimbabwe and its workers, who claim to be owed more than $35m in outstanding salaries since June 2009.

Caleb Mucheche, a lawyer for the workers’ union, said: "Since the court has appointed a judicial manager it means this is a prelude to liquidation. The judicial manager will now move in and the current Air Zimbabwe board will have to step aside.

"The judicial manager will assess if Air Zimbabwe is still a viable entity, but as the way things stand, all is not well, and he is likely to recommend liquidation. That is the process. Whenever a judicial manager comes in, the next step is liquidation," Mr Mucheche said.

Air Zimbabwe has had to suspend several international and regional flights to Johannesburg and  London as its debt crisis ballooned and saw its flagship Boeing aircraft seized by creditors for nonpayment of services.

The threat of liquidation is certain to work in favour of SAA, which holds the lion’s share in the airline market in Zimbabwe, according to the Civil Aviation Authority of Zimbabwe.

In 2010, SAA "accounted for the lion’s share of the airline market with 29,3%, relegating Air Zimbabwe to second position at 22,1%. British Airways-Comair came close on third position with 18,4%, while South African Airlink holds fourth position at 10,1%," reads a civil aviation authority report.

The United Arab Emirates-owned Emirates Airlines will start flights to Harare from February 1, in what is expected to start a return of international airlines to Zimbabwe after a 10-year hiatus.

More than 15 international airlines have pulled out of Zimbabwe, among them Lufthansa, Qantas, Austrian Airlines, Swissair, Air India, Air France and TAP Air Portugal.

Emirates SkyCargo will landed in Zimbabwe as Air Zimbabwe Woes

Air Zimbabwe which is bedeviled by insolence, and a dearth of planes has been struggling to meet the growing demand and the entrance into the market of, one of the fastest growing international airlines, has bolstered its operations on the booming Africa trade route.

Supporting the thriving trade between Africa and the rest of the world, its weekly cargo capacity into and out of the continent will be over 6,000 tonnes after the launch of flights to Lusaka and Harare on 1st February.

The addition of flights to Zambia and Zimbabwe comes less than three months after the launch of a dedicated weekly flights to Accra and Lome and means Emirates SkyCargo now has a total annual capacity of more than 300,000 tonnes.

“While many regions are experiencing challenging economic conditions, Africa – with a population in excess of one billion and rich in natural resources - is one of the few areas to record growth and the long-term outlook is very positive,” said Ram Menen, Emirates’ Divisional Senior Vice President Cargo. “We expect demand to be strong for a variety of commodities going into and out of Lusaka and Harare and have no doubt the two destinations will be a strong addition to our African network.”

The Dubai-Lusaka-Harare service will be operated five times a week by an A330-200, providing a total weekly cargo capacity of up to 160 tonnes.

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“We have slowly built up our presence on the continent since we launched flights to Cairo in 1986 and in recent years, as Africa started to realise its huge potential, we began flights to Cape Town, Durban, Luanda and Dakar,” added Menen.

“With such a comprehensive service now in place we are in a good position to help sustain Africa’s continued economic development by facilitating international trade with its business partners and opening it up to new markets on our ever-expanding network.”

Zambia has been enjoying an economic boom, driven by record copper prices and continued foreign investment in its mining industry and infrastructure, while Zimbabwe's economy is growing at a brisk pace despite continuing political uncertainty.

Emirates SkyCargo expects to be transporting parts to support the mining and infrastructure sectors – as well as of commodities such as garments, computer parts, and pharmaceuticals - from the likes of the Far East, Australasia, the Indian Subcontinent, Middle East, Europe and North America. Fresh flowers, fruit and vegetables will be among the main commodities shipped in the other direction, while trade is also expected to be generated by neighbouring countries.

EK 713 will depart Dubai on every Monday, Tuesday, Wednesday, Friday and Sunday at 0925hrs, arriving in Lusaka at 1450hrs. The service will depart Lusaka at 1620hrs, arriving in Harare at 1720. The return flight leaves Harare at 1920, arriving Lusaka at 2020. It departs Lusaka at 2150 and lands in Dubai at 0710hrs the next day.

An A330-200 – with a weekly capacity of up to 160 tonnes – will operate every Monday, Tuesday, Wednesday, Friday and Sunday from Lusaka and Harare to Dubai, providing businesses in Zimbabwe and Zambia the opportunity to connect with trading partners on Emirates SkyCargo’s network of more than 100 destinations.

Emirates SkyCargo operates dedicated freighter services to a number of points throughout Africa, including: Accra, Dakar, Eldoret, Entebbe, Johannesburg, Lilongwe, Lome and Nairobi.

Emirates SkyCargo is the freight division of Emirates and will serve 22 destinations in Africa after Lusaka/Harare comes online. Reflecting Emirates’ overall policy of excellence in every area of operation, Emirates SkyCargo’s investment in highly-qualified staff, the very latest information technology, the most efficient aircraft and the finest ground handling facilities, has made it a significant force in the global air cargo industry.

Following the launch of the Lusaka/Harare service, Emirates SkyCargo will serve a global route network that spans 120 points in 72 countries, including 11 cargo-only destinations, while more than 50 of the locations Emirates SkyCargo serves are e-freight compliant.

Emirates Increase Flights to Zimbabwe

The entry into Zimbabwe by international carrier Emirates and the increased number of flights to Zimbabwean destinations by South African Airways will avert a near-collapse of the local aviation sector, economists and analysts say, as the beleaguered Air Zimbabwe has failed to return to full operation.

From next month, Emirates will launch a five-times-a-week transcontinental service linking Harare, Lusaka, Dubai and the UAE. Tourism, which relies heavily on a strong and vibrant aviation sector, is projected to rebound on the back of this development.

Global aviation market intelligence organisation Centre for Aviation says Emirates' flights linking Zimbabwe, Zambia and the UAE would "provide Zimbabwe with its first link to the Middle East that could then open lines to new trading partners in the Gulf" and beyond.

SAA has increased its capacity in Zimbabwe by introducing a daily 222-seat A330-200 flight linking Johannesburg and Harare, bringing its total frequency to 21 times a week and increasing its capacity and frequency by 66%.

Though no official comment could immediately be obtained from the SAA's Zimbabwe office, country manager Winnie Mudariki had previously said the Zimbabwe operation was lucrative "and extremely viable" for the company.

Overall seat capacity for Zimbabwe is now expected to increase to 67 000 in May - from 64 000 in December last year.

Reports also say Air Namibia will return to Harare "for the first time in 13 years" when it launches its four-times-a-week flights linking Harare and Windhoek on April 1 this year.

Economist Onias Manyunga saidthe international and regional airline operators applied for their licences long before Air Zimbabwe's problems worsened.

Air Zimbabwe plane flies home after debt paid

An Air Zimbabwe plane impounded in London for more than two weeks over a debt dispute flew home on Sunday after the national carrier settled $1.2 million owed to a US spares company, the airline’s acting chief executive said.

“Yes, the plane arrived this morning from the UK and we are grateful,” Innocent Mavhunga told AFP.

American General Supplies seized Air Zimbabwe’s Boeing 767-200 at Gatwick over unpaid fees of $1.2 million resulting in the airline cancelling the flight and reimbursing stranded passengers.

The airline has also suspended flights to South Africa over a debt of $500,000 fearing creditors might impound more of its planes.

The airline, already struggling to pay its workforce and facing mounting fuel shortages, needs about $40 million to clear some of its debts, Mavhunga said earlier this month.

The airline says its financial difficulties are a result of the international sanctions targeting Zimbabwean President Robert Mugabe’s regime yet the same airline owed money to a US company for the supply of spares.

Air Zim plane finally released

AIR Zimbabwe’s Boeing 767 plane, impounded at Gatwick Airport over a week ago, was finally released on Tuesday, but the airline says it will take a few more days before flights can resume.

The aircraft was seized by US spares and maintenance firm, American General Supplies as it tried to force payment of a US$1.5 million debt.

Air Zimbabwe's regional manager for Europe and the America’s, David Mwenga cornfirmed the release of the aircraft and apologised to passengers inconvenienced by the crisis.

“We have to apologize to a lot of our passengers,” Mwenga told SWRadio Africa.

“We cancelled three flights because of this situation. We are sorry this happened.”

More than a hundred passengers due to have flown to Harare on the day the plane was seized were left stranded and also suffered the ignominy of being thrown out of a London Hotel after the airline allegedly failed to pay.

Meanwhile, Mwenga said flights would only resume after repairs to problems that developed over the time the plane was grounded have been completed.

Engineers are expected to complete the work by the end of the weekend.

However, the crisis ruined affected passenger’s holiday plans as most would have hoped to be home with their families in time for Christmas.

Mwenga said some had been refunded and managed to make alternative arrangements, but admitted that most could not be given back their money because of limited funds.

Air Zimbabwe has also been forced to suspend flights to South Africa fearing more of its aircraft could be seized by creditors.

The airline is said to be saddled with a debt of about US$140 million.

South Africa a no-go zone for Air Zimbabwe

Zimbabwe's state-owned airline has suspended flights to South Africa over fears its planes could be seized for outstanding debts, a senior airline official told state media.

Air Zimbabwe acting chief executive Innocent Mavhunga said the corporation, which is struggling to pay off debts of over $140 million, had decided to temporarily stop its daily flights to Johannesburg to avoid creditors there.

“We are not flying into South Africa. We are trying to secure funding to pay our debts in South Africa,” he was reported as saying.

Mavhunga however was unavailable on Friday to explain why Air Zimbabwe was not worried about continuing flights to other foreign destinations, Lusaka in Zambia and Lubumbashi in the Democratic Republic of Congo.

Earlier this week, Air Zimbabwe scrambled for days for money to save a Boeing 767-200 which had been impounded on landing at London's Gatwick Airport after a U.S. firm, American General Supplies, got a court order for $1.2 million owed for aircraft spares.

Last week, a South African airport support services company, Bid Air, forced Air Zimbabwe to ground a plane in Johannesburg as it pressed for payment of a $500,000 debt.

Economic analysts say Air Zimbabwe is on the verge of collapse after years of mismanagement and poor funding by President Robert Mugabe's Zanu-PF party.

The suspension does not cut the Harare-Johannesburg route since South African Airways has three flights daily and British Airways' Comair also has a daily flight.

Air Zimbabwe suspends South Africa flights

Zimbabwe's state-owned airline has suspended flights to South Africa over fears its planes could be seized to pay its outstanding debts.

The airline is reported to owe $500,000 (£320,000) to a local supplier.

Earlier this week an Air Zimbabwe plane was grounded in London until a similar debt was paid off.

The airline is reported to be struggling to deal with a total debt of $140m and is said to be on the verge of collapse.

"We are not flying into South Africa. We are trying to secure funding to pay our debts in South Africa," Innocent Mavhunga, Air Zimbabwe's acting chief executive, told the state-owned Herald newspaper.

He said, however, that the airline was continuing to fly to Zambia and the Democratic Republic of the Congo.

Other companies, such as South African Airways and British Airways' Comair, continue to fly between Zimbabwe's capital, Harare, and South Africa, the regional powerhouse.

200 Air Zimbabwe passengers remain stuck at Gatwick

At least 200 passengers were left stranded at Gatwick airport on Wednesday, ZimEye has learnt.

Airport officials told Zim Eye that 60 passengers had the previous day on Tuesday been given emergency sleeping facilities and food and the rest randomly put into hotels after an impounded Air Zimbabwe jet was being prepared for a possible auction originally scheduled for Wednesday (yesterday).

Four passengers belonging to the group were reported to have been arrested, another report British Police are yet to respond to, amid evidence that this may have been a mere rumour.

“We had about 60 passengers that stayed over at Gatwitck last night and we made sure that they were catered for, they had food, sleeping facilities and water,” an airport official told ZimEye Wednesday morning. By evening time, it had become clear that the full number was nearing a 200 total with some having to sleep on emmergency beds.

The Air Zimbabwe website was also seen having no update with the lastest news update having been made as far back as July when the company’s management fought media reports that stated the pilots were striking.

Problems haunting the airline were forecasted by the company’s chief executive who in June 2009 said the entity was now cash strapped:
The cash strapped parastatal cited under capitalization, huge debts and critical foreign currency shortages as the major challenges that it is facing. Air Zimbabwe Chief Executive Officer Dr. Chikumba confirmed that up to 480 employees would be retrenched within the next 12 months.

“The airline is in the intensive care unit. We are battling for survival and cannot afford to maintain the current number of employees” said Dr Chikumba as he also pointed out that the company would even afford to employ more than 800 workers.
Meanwhile, Zimbabwean radio personality Ezra Sibanda, among the passengers, was quoted by VOA stating that the situation was chaotic. “We have been camping at the airport without food and other basic necessities,” he said before Air Zimbabwe booked passengers back into a hotel.

The chaos has not only affected those travelers stranded at Gatwick but family and friends waiting for their loved ones back in Zimbabwe.

Former Combined Harare Residents Association chairman Mike Davies was quoted by VOA’s Violet Gonda stating that his wife was one of those stuck at the London airport with little help from the airline.

The outraged Davies vowed that his family will never fly Air Zimbabwe again. He said the situation was “just pathetic” and made a “mockery” of the airline.

“I spoke to my wife and she said the spirit (at Gatwick) is quite good. The Gatwick staff commented how well behaved the Zimbabweans were … She said, ‘Yes, that is the problem with us Zimbabweans, we don’t cause trouble.’”

Air Zimbabwe may cancel flights to South Africa

Harare - Zimbabwe's state-owned carrier Air Zimbabwe might cancel flights to South Africa because its planes could be impounded in Johannesburg over unpaid bills, aviation sources said on Monday.

The airline has been banned from numerous destinations for non-payment of landing rights.

But debts to a South African baggage handling company have piled up to such an extent that daily flights from Harare to Johannesburg might end.

Last Friday, an Air Zimbabwe Boeing 737-500 plane was impounded at OR Tambo airport for several hours.

Bid Air Services, the main baggage handling company in South Africa, seized the plane after Air Zimbabwe failed to pay $500 000 to clear unpaid bills.

"A forklift truck was parked at the back of the plane so it couldn't leave," an Air Zimbabwe engineer told dpa.

Passengers had to walk to the terminal building because no buses were provided.

The airline continued flying to and from Johannesburg over the weekend and on Monday, but sources would not say whether flights would continue into Tuesday.

The cash crunch also impacted Europe and Asia-bound flights this past weekend, when the airline's two Boeing 767 long-haul aircraft couldn't fly to London and Beijing because of "unavailability of funds to purchase fuel", said a senior member of Air Zimbabwe staff said.

On several previous occasions, passengers on board have been asked by the airline's crew for donations to pay for fuel or landing rights.

Huge debts and mismanagement have brought Air Zimbabwe to its current crisis.

Air Zimbabwe trying to secure French planes amid sanctions

Air Zimbabwe is reportedly struggling to register two airbus planes it bought from France because of European Union sanctions imposed on the southern African country.

Details emerging from several Air Zimbabwe sources reveal that the planes were bought through China Sonangol, a Chinese controlled oil company based in Angola.

Sonangol was reportedly roped in to circumvent the sanctions slapped on Zimbabwe in 2002.
Aviation sources said Eads, the French aircraft manufacturer was the supplier of the planes.
The sources said the Ministry of Transport, Communications and Infrastructural Development entered into the deal with Sonangol.
Sonangol would then advance payment to Reliance Aerospace Solutions, an aviation consulting firm which would transfer the funds to Airbus.
In 2009, five deals worth US$8 billion were signed between the Zimbabwean government and Sonangol.

The deals were signed amid promises that they would help the country attract direct foreign investment into key sectors of the economy.

Air Zimbabwe seems to have been one of the beneficiaries with the purchase of the Airbus planes to replenish an ageing fleet.
With the procurement of the planes in place, several pilots and staff have been sent to various European countries for training but registration of the planes is now a stumbling block.
In July and August a team of pilots and stewards was dispatched to Toulouse in France and Madrid in Spain for training on the new aircraft.
The new aircraft will service Air Zimbabwe's long-haul routes – mainly to China and the United Kingdom.

Air Zimbabwe sources said the latest team sent to France to iron-out the deal came back empty handed.
"The first delivery was expected before September 20.
"What I see as the biggest challenge is the issue of ownership of the planes because the management of Air Zimbabwe have no idea where the money to buy the planes is coming from," said the source.
As if to collaborate the details, last week Air Zimbabwe acting chief executive officer Innocent Mavhunga told a parliamentary committee that 16 pilots had been sent for a 45-day course in preparation for delivery of new equipment.
Mavhunga, however, failed to say when the government would bring the new equipment, prompting MPs to conclude that the government, which is the majority shareholder was the one running Air Zimbabwe and not management.
Mavhunga said the airline was saddled with a $137, 7 million debt, $112, 7 million of it being internal debt.
Transport, Communications and Infrastructural Development Minister Nicholas Goche recently announced that government will soon take over Air Zimbabwe's debts.

Air Zim Airbus Deal In Trouble

Harare-Zimbabwe: The Zimbabwean government is battling to register two airbus planes purchased early this year from Paris, France through a closely guarded deal between the government and a Chinese-Angolan joint venture company, China Sonangol, it has emerged.

Impeccable sources from Air Zimbabwe told that the government as the main shareholder was having some registration challenges to ensure that the planes can get to Zimbabwe.

“The team that visited France last month came back empty handed despite earlier commitments that the first delivery would be made before September 20, 2011. What I see as the biggest challenge is the issue of ownership of the planes because the management of Air Zimbabwe have no idea where the money to buy the planes is coming from,” said a source.
There is a lot of money involved, according to the source, and the government is not coming clean of the whole deal.
“The other solution was to have the planes registered through the Netherlands but it’s still not yet clear. The planes are a result of a deal with China Sonangol but the government is very quiet on it,” said the source.
However Air Zimbabwe board chairperson Jonathan Kadzura denied that the planes were being bought through a deal with Sonangol and denied to shed light.
“This certainly has nothing to do with Sonangol and because of the little information that I have, I can’t give you any further details,” said Kadzura before hanging his phone.
Air Zimbabwe acting chief executive officer Innocent Mavhunga declined to comment on the matter maintaining the matter was a shareholder issue.
“That is a shareholder issue and I can’t comment on that. I do not have any comments to make on that matter,” said Mavhunga.
In 2009 the government of Zimbabwe signed five deals with China Sonangol worth US$8 billion that were said would help the country see investment pour into various key sectors of the economy.
Key sectors that were said would benefit under the deal include mining and housing, among others.
The package was a culmination of a meeting between President Mugabe and Chinese Premier Wen Jiabao in Egypt at the summit of the Forum on China-Africa Co-operation.

Govt assumes Air Zim’s US$140mln debt

THE government will assume responsibility for Air Zimbabwe’s $140 million debt in a bid to help the technically insolvent flag-carrier back on its ‘wings’, Transport Minister Nicholas Goche has said.

The airline has been crippled by numerous operational problems including mounting debts, ageing aircraft, undercapitalization and labour disputes with key staff.

Goche said the government had agreed to takeover the debt and help find the company a technical partner.

“Last Thursday Cabinet … resolved that, Air Zimbabwe as a strategic Government asset and brand, needed to be preserved and supported as a going business concern,” Goche told The Herald.

“To this end, Government must assume Air Zimbabwe's current debt (currently standing at US$140 million) and ring fence the same."

Air Zimbabwe chief executive, Innocent Mavhunga recently urged government to help liquidate the airline’s huge debt pile comprising $112.7 million internal obligations and $25 million owed to institutions outside the country.

“Our cost of operating the business sits at about $6 to $7.5 million,” Mavhunga told Parliament’s Portfolio Committee on State Enterprises and Parastatals at a recent hearing.

Meanwhile, Goche said proceeds from the planned part-privatisation of the airline would be used to offset the debt while staff numbers would also be reduced to cut operating costs.

"In order to realise additional financing, there is urgent need to find a strategic partner for the national airline through private placement, that is, directly approaching would-be interested investors and forming a joint venture partnership," he said.

In addition, the National Handling Service (NHS), a subsidiary of the airline, would also be privatized to secure additional funds.

"Efforts to partially dispose of the National Handling Services should be pursued with urgency now in order to secure some financing from within the airline in order to avoid overburdening Treasury,” Goche said.

Air Zimbabwe now US$138 million in debt

Air Zimbabwe is losing US$3.5 million a month and currently has US$138 million of debt, according to the airline’s head, versus US$6 million of debt in 2006.

“Our cost of operating the business sits at about US$6 to US$7.5 million,” Air Zimbabwe Chief Executive Officer Innocent Mavhunga said on Tuesday, Radio VOP reports. “Our income is between US$2.5 and US$3.5 million. So simple mathematics would tell us there is a deficit averaging US$3.5 to US$5 million every month." He said that the state owned airline has US$137.7 million of debt, US$112.7 of which is owed to local creditors.

Mavhunga made the comments at Parliament’s Portfolio Committee on State Enterprises and Parastatals, which asked airline management to discuss the current state of affairs and explain how the airline will overcome its problems.

“On internal debt, statutory obligations to companies like the Zimbabwe Revenue Authority and the National Social Security Authority account for US$38 million, loans from the ministry of transport are up to US$26 million, deferred staff salaries and allowances are US$20 million plus US$12.3 million from our overdraft facility with our banks,” Mavhunga added.

“Our external debt comprises US$4.6 million to the International Air Transport Association and another US$4 million to Global Systems. We also owe our aircraft spares and parts suppliers some money and I think we have about US$5 to US$8 million for navigation services.”

Mavhunga said Air Zimbabwe’s dismal financial situation was due to sanctions and, during the era of the Zimbabwe dollar, the government’s refusal to charge in foreign currency. Other reasons for the airline’s poor performance were repeated pilot strikes, high operational costs from ageing aircraft, reduced passenger confidence in the airline and government interference.

“AirZim has been operating under a deficit since the 1990s and this worsened at the inception of the multiple currency regime,” Mavhunga siaid. “We have become less competitive, hence we have to price our fares slightly below our competitors.”

Several Air Zimbabwe aircraft were earlier this year grounded due to safety concerns and a leased aircraft was taken back after Air Zimbabwe could not pay for it. Of the airline’s fleet of eight aircraft, three are grounded. Such incidents have resulted in a big drop in passenger numbers and some Air Zimbabwe flights this year have flown almost completely empty.

Declining passenger numbers have forced the airline to reduce the number of destinations it services. It currently flies to Harare, Johannesburg, Lusaka, Bulawayo, Victoria Falls and Lubumbashi locally and Malaysia, China and the UK internationally.

Foreign carriers have been taking over the domestic market. “Our market share versus South African Airways is quite low. We control 30% of the Johannesburg route and market, whilst SAA accounts for about 50% of the market and British Airways slightly below 20%,” Mavhunga said.

Mavhunga said that Air Zimbabwe needs to be privatised and needs to retrench 400 employees from its bloated workforce of more than a thousand employees in order to cut costs. The airline consistently struggles to pay its workforce – something that has led to repeated pilot strikes. The airline last paid its workers in June.

“We immediately require US$40 million as working capital because we are operating on a cash-upfront basis with all our service providers and we need to service our creditors. We immediately need to restructure the airline, look at change management, recapitalise and inject a new fleet,” Mavhunga said, adding that it will take up to a year to overcome damage from the recent strikes.

The airline’s general manager Moses Mapanda told the parliamentary committee that attempts to assist Air Zimbabwe by encouraging government officials and MPs to travel on the state airline were not working. “If government officials do not support their own business, how does the shareholder expect Air Zimbabwe to survive?” he asked.

South African Airways capitalises on AirZim’s woes

South African Airways has increased its seating capacity on the Johannesburg-Harare route through the introduction of the Airbus 330-200. SAA, which recently reduced its airfares for eight destinations, including the Harare Johannesburg route as a way of consolidating its market share in Zimbabwe, is one of the biggest beneficiaries of the operational problems at Air Zimbabwe.

At the launch of the A330-200 at Harare International Airport yesterday, SAA country manager for Zimbabwe Winnie Mudariki said there had been great demand on the Harare-Johannesburg route and the new aircraft will provide efficiencies to support the airline’s profitability and growth strategies.

She said the new airbus has a seating capacity of 253 passengers compared to 157 on the A 319. The new plane seats 36 passengers in business class and 186 in economy.

SAA flights have now increased to 21 a week from 14, while flights on the Victoria Falls route were 7 weekly.
Director of transport in the Ministry of Transport and Communications, Allowance Sango, concurred with Mudariki that there had been a gradual increase in demand on the route.

He noted that last year, SAA seats had started off at 3 920 per week, risen to 4 390 and ended the year in December at 5 264. This year, seats had increased to 5 394.  Demand on the Vic Falls route had also increased to 1 680 seats from December’s 1 162.  

The move to introduce the larger airbus comes after a number of airlines have expressed interest to service the Zimbabwe route.  Emirates airline, which will ply the Zimbabwe-Zambia-Dubai route next year, will also operate an A330-200 aircraft.

South Africa’s ambassador to Zimbabwe Vusi Mavimbela acknowledged the competitiveness of the environment but said that the launch indicates that SAA is riding the storm of the economic crisis when other airlines are cutting back. 

He said that Zimbabwe will play a crucial role in the development of the region in future, and as such, its transport infrastructure needed to improve.

Airline strike hits Zimbabwe hard

The national carrier has not been flying since the end of July due to a protracted wage strike by pilots.

The drop in tourist arrivals would affect the southern African country's chances of achieving a projected six percent growth this year.

In July, tourism authorities reported a 16 percent increase in tourist arrivals for the first quarter of 2011.

Zimbabwe Council for Tourism president Emmanuel Fundira said there has been a marked decline of tourists visiting the prime resort town of Victoria Falls.

Victoria Falls, which is the southern African country’s drawcard for foreign tourists is losing its prime market share to Zambia due to the absence of Air Zimbabwe.

A limited number of tourists determined to view the Falls are resorting to using chartered flights or flying via South Africa but these options are expensive.

Tourists on small chartered flights with a capacity of 12 passengers fork out between US$4 000 and US$8 000 from Harare to Victoria Falls while commercial planes charge up to US$600 per passenger via Johannesburg.

Travelling by road is not an option for most tourists as it is time consuming. It would require two travelling days.

Hotels in Victoria Falls also been hit hard with low occupancy rates.

In his mid-term fiscal policy statement Finance Minister Tendai Biti who indicated that the tourism sector had registered growth during the first half of the year, bemoaned the challenges facing the national airline saying they were having a negative effect on the sector's growth.

With Air Zimbabwe grounded, it is losing close to US$8 million per month to foreign airlines, particularly South African Airways and Kenyan Airways which are servicing the routes.

Meanwhile, striking Air Zimbabwe pilots risk having their flying licenses revoked if they continue with their industrial action.

An aviation expert said pilots were subjected to regular tests to ensure that they were still capable of performing their duties.

He said in most instances pilots’ licences are valid for six months after which they have to undergo tests.

If, however, a pilot has not flown for about 90 days, they will undergo a simulator test. 

“At the moment that equipment is not available in Zimbabwe.

”Pilots operating long-haul planes will have to go to Ethiopia for testing while operators of small aircraft go to South Africa,” the expert said.

Air Zimbabwe: Hundreds stranded in China for weeks

OVER 200 Air Zimbabwe passengers have been stranded in China for the past two weeks after the airline’s pilots went on strike demanding unpaid salaries, officials said on Monday.

The pilots have vowed not to return to work until they are given US$200,000 each as full payment of arrears and salaries pending from last year.

Air Zimbabwe, which is struggling with $100 million debts, will be paying the stranded passengers’ hotel bills until it starts servicing the route.

“The situation is that we have not been flying to China for the past two weeks,” Air Zimbabwe acting chief executive officer Innocent Mavhunga said.

“We have been accommodating the passengers in hotels and those who we can re-route we are doing so. The cost varies from one hotel to another.”

The strike has affected some of the airline’s international services besides domestic and regional flights which have also been cancelled.

This is not the first time this year the pilots have downed tools.

They went on strike in January demanding to be paid their outstanding salaries and allowances.

They also embarked on another job boycott on March 22.

Air Zimbabwe grounded again following strike by pilots

A strike by Air Zimbabwe pilots entered its third day on Monday, crippling operations at the national flag carrier.

Pilots walked off the job on Friday after negotiations over salaries and allowances broke down. The airline’s regional manager for the UK and America, David Mwenga told SW Radio Africa he had been advised that as of Monday no agreement had been reached between the pilots, the airline board and management team. Mwenga said that “discussions between the stakeholders are ongoing with a view to get the pilots back to work.”

This is the second time in a month that pilots at the national airline have gone on strike demanding unpaid salaries and allowances for June and July.

The strike has left hundreds of passengers stranded on all its regional and international routes. Air Zimbabwe operates a daily Harare-Johannesburg route, a twice-weekly flight to London and a weekly flight to Beijing as its only international routes. All flights from the capital have been suspended due to the strike while the airline was forced to re-schedule some of its other flights.

The industrial action by the pilots is one of many to hit Air Zimbabwe in the last year alone. Two months ago, the airline was forced to cancel its flights to London and South Africa after fuel suppliers demanded up front cash payments until the carrier settled its debts. Apparently, the carrier owed US$1.6 million to fuel suppliers.

In May, 18 of its flights came to a halt for a week as the aircraft it was leasing from Zambezi Airlines was withdrawn over an unpaid US$460 000 debt. It is believed the national airline is crippled with more than US$100 million of debt, some of it accrued from a nearly month long strike between March 22 and April 20.

Air Zimbabwe ready to fly again

Zimbabwe’s troubled airliner will Tuesday resume local and regional flights after one of its three planes that were grounded in April over safety concerns, was certified fit to return to the skies.

The Civil Aviation Authority of Zimbabwe (CAAZ) grounded Air Zimbabwe’s three Boeing 737-200 planes, insisting that they had reached the end of their economic life span.

The debt ridden national carrier was forced to stop servicing local routes and entered an agreement with a Zambian private airline to ply regional routes.

But the deal crumbled a month ago after Air Zimbabwe failed to pay $460,000 for the aircraft it leased from Zambezi Airlines.

Mr David Chihota, the CAAZ chief executive officer, said the remaining two aircraft will be cleared in the next few weeks.

“The three 737-200 planes that have been grounded have been cleared,” he said. “One is ready for service immediately and the other two are almost done.

The challenges

“All conditions required by CAAZ are being met and the planes are fit for all the purposes.”

Air Zimbabwe sinks deeper

The crisis at Air Zimbabwe is set to worsen on Wednesday with threats by Zambezi Airlines to withdraw its aircraft leased to the beleaguered parastatal unless it paid $460 000 owed to the Zambian firm, NewsDay can reveal.

Sources told NewsDay on Tuesday night that Zambezi Airlines was likely to withdraw the aircraft it is leasing to Air Zimbabwe on Wednesday.

“Zambezi Airlines have given us up to Wednesday (today) to pay the $460 000 instalment which we were supposed to have paid on June 15. They had threatened to withdraw their aircraft on Monday but they have since given us up to Wednesday (today) to sort ourselves out,” said the source who requested anonymity.

Contacted for comment on Tuesday, Air Zimbabwe acting chief executive Innocent Mavhunga only said the airline had numerous problems which they were trying to address and that he was presently in meetings and as such could not comment.

The national airline is leasing an aircraft from Zambezi Airlines to service regional routes after its fleet of Boeing 737s was condemned by the Civil Aviation Authority of Zimbabwe early this year.

Air Zimbabwe is reeling under a heavy debt and last week, local suppliers of A1 Jet reportedly stopped supplying them with fuel, because the airline had failed to service its $1,6 million debt.

The airline had to cancel flights because of that. Pilots are also reportedly threatening to down tools over a salary dispute while the National Social Security Authority plans to attach Air Zimbabwe properties over unremitted workers’ pension contributions.

Air Zimbabwe is reportedly saddled with a $100 million debt.

Air Zimbabwe out of fuel

Zimbabwe's debt-ridden national airline has cancelled flights to London and South Africa because fuel companies have cut off its supplies because of unpaid bills.

A senior manager at the troubled carrier yesterday confirmed the flight cancellations.

"We had no option but to cancel London flights because suppliers refused to give us fuel for the trip," the manager said.

London-to-Harare flights were also cancelled.

Air Zimbabwe GM Innocent Mavhunga would not deny that the groundings were a result of failure to pay fuel suppliers.

"I would not want to comment on that," he said.