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Business Reporter
AMBITIOUS local start-up Rainbow Airlines, which made its demonstration flight on July 21, 2015 between Harare and Kariba, is stewing in debt as creditors lay siege on the business.
The airliner intended to service the Harare-Johannesburg route by August 2015 but those plans fell through.
The Sunday Mail Business understands that by December 2015, the business was battling claims from creditors, with the latest being Mr Tendai Oliver Chipindu – owed by more than US$30 000 – who approached the High Court for relief.
Rainbow Airlines, through its CEO Mr Frank Humbe, had signed an acknowledgement of debt under which would pay Mr Chipindu US$9 300 before July 31, 2015, US$10 700 before the end of August and US$10 000 before September 10, 2015.
This had not been done by mid-December last year.
The airliner is also weighed down by an estimated US$6 million debt owed to the Zimbabwe Revenue Authority in unpaid taxes.
Mr Humbe refused to comment on the current state of the project.
Sources familiar with goings-on at the firm said borrowings and Zimra obligations had negatively affected the venture.
“The project was a meaningful one and was definitely going to bring hope to our aviation sector and bring competition to other international airlines but their problem was that they over borrowed from banks, finance houses and individuals.
“The main problem is that the financiers of the project wanted a massive stake from the airline, leaving the registered owner with almost nothing. Consequently, this made the Rainbow Airlines to struggle before it even started,” said the source.
Rainbow Airlines got its Air Operators Certificate in February 2015 and planned to operate the Harare-Johannesburg route by August 26, 2015 as well as the premier Harare-Victoria Falls route.
It was envisaged that the carrier would operate a daily schedule between Harare and Johannesburg with morning departures from Zimbabwe’s capital and an evening return service from South Africa.
Carriers like Air Zimbabwe, Comair, South African Airways and FlyAfrica are competing on that route.
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