Air Zimbabwe to get new aircraft, expand routes next year

The Zimbabwean government has allocated ZWL1.5b (US$4.1m at RBZ rate) for the recapitalisation of Air Zimbabwe, to be used towards the acquisition of new aircraft, route expansion, digitalisation, and a lean workforce. This was disclosed by Finance and Economic Development Minister Mthuli Ncube during his 2022 national budget speech on November 25. He said the recapitalisation was in support of the national airline’s six-year strategic turn-around plan. “Air Zimbabwe is now a commercially viable company following the conclusion of the scheme of reconstruction in June 2021. This was achieved after approval by Cabinet of the national airline’s debt assumption and the settlement of its domestic debt and part of its foreign debt,” Ncube said. As reported previously, Harare had approved the airline's reconstruction scheme in May 2021. The carrier's liabilities had amounted to US$30m in foreign debt and ZWL349m (US$873,000) in local exposure. Domestic creditors were actually owed US$349m, but their debts were converted to new Zimbabwe dollars at the official 1:1 rate. “Going forward, the thrust is implementation and execution of the airline’s plan to ensure that it acquires requisite equipment, routes network expansion, invests in appropriate information communication technology (ICT) systems, and strengthens its competitiveness through the strategic deployment of a lean and professional workforce. In support of the turnaround plan, the 2022 National Budget is allocating ZWD1.5b for recapitalisation of the national airline towards operational costs and the acquisition of aircraft.”<br/>