Minister urges Airzim to diversify

Air ZimbabweRumbidzayi Zinyuke Business Reporter
Transport and Infrastructural Development Minister Dr Obert Mpofu has urged Air Zimbabwe to diversify its operations and consider partnerships with regional and international airlines to increase capacity.
Speaking at a briefing with the airline’s board and management before a tour of Air Zimbabwe headquarters in Harare on Wednesday, Minister Mpofu said diversification was the way to go.

“We have the best technical services which can be shared with other airlines in the region so it is imperative that we use that to try and turn our fortunes around. Do everything you can to get the airline back on its feet and we will do everything we can as Government to make it easier for you,” he said.

Air Zimbabwe, which is struggling with debts of over US$188 million, has been on a drive to restore its viability and regain its lost market over the past year following years of hardships that were a result of a challenging economic environment.

Minister Mpofu said despite the challenges, Air Zimbabwe should find other ways to make money and support its flights. He said there was need for the airline to form strategic partnerships that would help turn around its fortunes.

Government has been looking for a strategic partner for the airline to revive its operations but talks have collapsed due to the myriad problems bedevelling the airline.

However, analysts believe finding a strategic partner would resolve the airline’s problems faster.
“We have always told ourselves that we can do it on our own but right now we are alone and we are not coping. That means we have to regroup and start looking at partnerships, this kind of trade requires us to work with others. Other airlines are doing it, so why are we not doing the same?”

“I am sure there are many airlines who would like to work with us. Let’s open our doors and let go of this idea that we are self-reliant and we can do it on our own,” he said.

He said Government should make it a condition for any airline which wants to come to Zimbabwe that Airzim gets something out of that, on agreed terms.

Speaking at the same occasion, Airzim acting chief executive Mr Edmund Makona said the airline had the expertise which they hoped to use to return to profitability.

“We are considering diversification as a way to boost our yields. We have the best maintenance people in the region and we can offer other airlines our services as well as maintaining our own fleet. We want to focus on third party work,” he said.

He said the airline has an operational deficit of US$300 000 and has been struggling to break even due to an inefficient route management system which has seen all flights that take off fail to realise a profit.

Over US$300 million is required to resuscitate the airline.

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