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Harare Bureau
Air Zimbabwe is targeting $80 million revenue for the year from the $32 million recorded in 2014 as the national airliner begins the implementation of its four year turnaround strategy.
In line with the strategy, the national airliner recently finished the refurbishment of its process and service shop which is set to contribute significantly in diversifying the company’s revenue streams.
AirZim acting chief executive Edmund Makona said the company is quite hopeful of 2015 prospects which will be supported by the recent diversification in revenue streams.
He said the refurbished process and service shop will contribute about 25 percent of the company’s revenue at sectional level.
“In terms of our forecast for the year the airline has become so ambitious and the targets will mainly be anchored on our efforts to turnaround the company.
“The refurbished shop will generate not less than $60,000 per month and with our continued efforts to turnaround the airline, $80 million is our revenue target for 2015,” said Makona.
“The mining sector has started expressing interest in our facility and we have already reached an agreement with a local mining firm so that their equipment would be serviced here.”
The process and service shop offers mechanical and engineering services to the local and foreign market and this is part of the airline’s efforts to widen revenue streams. The shop offers engine services, overhauls and repairs and has been functional for the last few weeks.
Despite the current strategies, Air Zimbabwe, however, requires $260 million to recapitalise as debt continues to blight the airline’s turnaround strategy.
The airliner’s management and the board have crafted a four year recovery plan for the airline, which forecasts a $7 million loss for the full-year to December despite a modest growth in the global aviation industry.
Air Zimbabwe has of late been encouraged to change its model to cater for the low end market in the face of new entrants on the domestic market such as Fly Africa. The airline is currently flying three out of its fleet of 10 aircraft and hopes to have two that are currently being serviced in South Africa by the South African Airways.
Makona however bemoaned the delay by SAA in servicing the two 8320 Airbuses.
“We also have two Airbus 8320s that are currently undergoing maintenance at South African Airways technical; we are convinced that by the end of this month we should have one of these aircrafts operational.
He said the airline wants to introduce domestic flights to Buffalo Range, Hwange and the Lowveld in bid to widen revenue inflows.
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