HIGHLIGHT ON

Saturday, August 18, 2018
Subscription Centre
Receive our free e-newsletter.
Click here for more information

Zimbabwe government buys Boeing planes, leases them to new airline

An Embraer jet.Zimbabwe has bought two Boeing 777 aircraft and an Embraer plane from Malaysia, the finance minister said on Wednesday, adding the planes would be leased to a new local airline until national carrier Air Zimbabwe returned to profitability.

Patrick Chinamasa said Harare had agreed with an unidentified Malaysian firm to buy four Boeing 777 planes for $70 million but had so far paid for two.

The government had also paid for a small Embraer plane and plans to add five more such aircraft.

The new planes are owned by a state-owned special purpose vehicle called Zimbabwe Aviation Leasing Company.

During a ceremony to receive the first Boeing 777 in Harare, Chinamasa said the aircraft would be used by Zimbabwe Airways, a new carrier whose ownership was not immediately disclosed.

Local media reports had linked Zimbabwe Airways and the new planes to former president Robert Mugabe’s family, but Chinamasa said that was false.

Chinamasa would also not comment on speculation the government could be the owner of the new airline and would ultimately dissolve the troubled Air Zimbabwe.

He said, however, the government could not continue supporting loss-making Air Zimbabwe because it was like “putting resources into a bottomless pit.” Air Zimbabwe has debts of more than $300 million.

“Air Zimbabwe must put their house in order and as long as they don’t put their house in order, these planes I can lease to any third party who can pay treasury the lease fees for the utilizations of the aeroplanes,” Chinamasa said.

Chinamasa said the Boeing planes had a lifespan of 15 to 20 years.