AIR Zimbabwe has completed adjudication of bids submitted
by three investors that have expressed interest in acquiring shares in the
struggling State-owned airline.
Assistant administrator Tonderai Mukubvu of Grant Thornton
told The Herald Finance and Business in an interview that a comprehensive report
would be submitted to the Ministry of Transport and Infrastructure Development
for consideration.
AirZim was placed under administration in October last year
in an effort to revive its fortunes.
Initially, 10 international investors had expressed willingness
to acquire a shareholding in the troubled national flag carrier, but only three
eventually submitted bids.
“The process of adjudication is complete now; we have made
our recommendations based on the bids that we received and also the business
models that we think can help turnaround the airline. By end of this week, we
will submit our reports to the ministry,” said Mr Mukubvu.
He, however would not be drawn to disclose the three
potential suitors citing confidentiality.
The troubled airline, which owes foreign and domestic
creditors millions of dollars, is among State-owned entities, which also
include telecoms operators NetOne and TelOne; Chemplex and POSB, that the
Government listed for privatisation.
Air Zimbabwe is operating with a single plane (Boeing
737-200), mainly servicing Harare-Bulawayo and Victoria Falls routes, as well
as Harare-Johannesburg and Harare-Dar es Salaam regional routes. It has two
Airbus A320-200, two Boeing 767-200, two Boeing 737-200, British Aerospace
146-200 and an Embraer ERJ-145, which are grounded due to functional
deficiencies.
Air Zimbabwe has a staff complement of over 232 employees
being the total number of active employees at its Harare base, local out
stations and regional offices. It has maintained a large staff headcount
despite a depleted fleet.
Last month, Transport and Infrastructure Development
Minister Joel Matiza, said a Malaysian firm had cleared the release of two
aircraft acquired by Air Zimbabwe. Delivery of the planes is expected before
year end.
The two Boeing 777-200 ER are part of four planes the
national airline intends to buy. Last year, Government, entered into an
agreement to acquire aeroplanes from Malaysia for US$70 million.
Air Zimbabwe is also finalising regulatory issues to start
flying the Embraer ERJ145 purchased from the US. The plane was delivered in
April this year.
The 50-seater jet has to go through the local registration
process as well as all mandatory checks, tests and certification before it is
put into service, the Air Zimbabwe administrator said.
The aircraft is expected to mostly service local and
regional routes.
Improved air connectivity is critical to Zimbabwe at a time
the southern Africa country is on the drive to attract foreign direct
investment as well as enhance tourist arrivals. Other regional airlines have
taken advantage of improved tourist arrivals, particularly in Victoria Falls
following the upgrade and expansion of Victoria Falls International Airport.
This also comes at a time Harare is upgrading Robert Mugabe
International Airport, which will include expansion of the international
terminal building and aprons, installation of four new air bridges, a secondary
radar system, the airfield ground lighting system, the communication systems
and construction of a VVIP pavilion and new satellite fire station.
Once complete, the airport will have an additional
capacity, connectivity and resilience to handle another 3,5 million passengers
annually with improved service, making the airport a strong contender for the
much-coveted regional aviation hub status in southern Africa, for which
Zimbabwe is geographically well-positioned to capitalise on.
Observers say it appears that geographically, Zimbabwe is
more strategically suited to be the hub for Southern and Central Africa
compared to its regional peers. And so investors can imagine the benefits from
all major flights into the region routing through Zimbabwe first, and then
connecting to Johannesburg, Nairobi, Addis Ababa, or Kampala!
But its State airline has operated in fits and starts since
2005, as the economy also took a tailspin, when the airline got saddled by huge
debts and shortage of hard currency for spares and fuel.
Air Zimbabwe’s roots can be traced back to 1946 when it was
known as Central Africa Airways and operated as a joint airline for Nyasaland,
Southern Rhodesia and Northern Rhodesia.
This continued till 1967 when the joint operations ceased
leading to the formation of Air Rhodesia.
It operated as Air Rhodesia until 1980 when the nation
attained independence and adopted the name Air Zimbabwe. The airline operated
as Air Zimbabwe Corporation until 1997 when Air Zimbabwe Pvt Ltd was created in
terms of the Air Zimbabwe Corporation Repeal Act of 1998.
In 1980, Air Zimbabwe had 18 aircraft and was a major
regional and international aviation player. The airline has been in a downward spiral
since 2003 with passenger numbers significantly falling from one million in
1999 to less than 20 000 by 2016. Herald
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