“We have no option other but to right-size or else we are dead,” Air
Nearly a decade of economic and political crisis has seen annual passenger numbers for the struggling airline drop from a peak of one million in 1996 to just 300 000 now, the company adds.
The state-owned airline formed in 1980 after the country’s independence has been beset by a string of financial problems.
The company is currently US $30 million in debt and has asked the government to sell its stake in the airline in a bid to raise desperately needed cash from private investors.
“If we do not do anything about it, the business will collapse and it will be very unfortunate if this happens,” Chikumba told AFP.
Last year at the height of the country’s hyperinflation, which officially hit 231 million percent but was believed many times higher, Air
That left the airline struggling to pay its membership fees with the airline regulation body, the International Air Transport Association (IATA), while it couldn’t pay landing fees at
Chikumba was hopeful that the unity government formed in February between President Robert Mugabe and his erstwhile rival Prime Minister Morgan Tsvangirai would bring economic stability and improve the business environment.
“We are positive that the political atmosphere that has been created will bring potential investors into the airline and the country,” said Chikumba.
The route has since been closed, together with
The company has also been hit hard by the national brain drain as experienced personnel such as engineers and pilots are poached by rival carriers in the region and
Chikumba said the retrenchment was a way of trimming the company’s workforce to match the reduced business climate, while retaining staff with the right skills.
He also expressed concern about the airline’s ageing fleet.
“Our 737 fleet is 23 years old and has outlived its economic life span,” he said.
“The standard economic life span of an aircraft is about 15 years. Maintenance costs are high, spares for these aeroplanes are scarce,” Chikumba added.
The company’s newer planes are three Boeing 737s, two 767s and three Chinese MA60s which were purchased in 2005.
The political crisis in the southern African nation has decimated key industries like mining and agriculture, and run the country’s education and health sector to the ground.
Once described as a model economy and a regional breadbasket,
Mugabe has blamed Zimbabwe’s meltdown on sanctions imposed by Britain and other Western nations, but his opponents accuse his government of widespread economic mismanagement.
Pic: Air Zimbabwe plane