Air Zimbabwe hopeful of getting back into IATA

Officials at Air Zimbabwe remain optimistic about a possible return to the International Air Transport Association (IATA), which imposes industry policies and standards that promote safe, secure, and economical air travel operations.

Due to unpaid fees and safety concerns, the government-owned airline has been suspended from IATA multiple times. The Zimbabwean flag carrier owed IATA $140 million after experiencing operational challenges amidst a strenuous financial climate over the last few years. With high hopes of a return, 90% of its dues reportedly have been paid.

Due to a combination of huge debts, viability problems, and a weak balance sheet, the airline was placed under reconstruction in 2018, according to The Herald-Zimbabwe. The order mainly prevented creditors from taking legal action against the airline and its assets.

In a statement to Bulawayo 24 News, Air Zimbabwe CEO Tafadzwa Zaza said, “The administration put a strategic turnaround plan which was approved by the Cabinet. In that strategic plan, one of the major issues was the debt being taken over by the Government.” -Tafadzwa Zaza, Air Zimbabwe CEO

The government formulated the Air Zimbabwe Debt Assumption Bill with a primary strategy to tackle debt and revive the airline. With a new administration in 2021, the government recommitted its plans by adopting the same policies of the bill.

“The Bill is required to allow for the clearance of the airline’s domestic and external debt, followed by the appointment of a new board and new management to run the airline, thus permitting its exit from the reconstruction order,” said Information, Publicity, and Broadcasting Services Minister Monica Mutsvangwa to The Herald-Zimbabwe.

In 2021, the airline reportedly had a $349 million deficit in local debt and $30 million in foreign dues.

Mutsvangwa also said she expects the bill will ensure the renewal of the airline and its associated companies from perennial loss to a period of growth in tourism, trade, commerce, and the economy.

To further increase its chances of getting back into the IATA, the carrier has been focusing on expanding its network and fleet over the last few months.

“The other issue was recapitalising the airline through the acquisition of appropriate equipment and the right size of the routes that we want to operate and the modern equipment because ones that we have are a bit aged and are costly in terms of operations,” Zaza said to Bulawayo 24 News. “This will help the airline rejoin the IATA clearing house. We are currently not a member of the IATA clearing house.”

In March, Air Zimbabwe had hoped to rejoin the IATA within the next three months. Zaza said it has been difficult for the airline to access the global distribution system (GDS) without being in IATA, which is the billing and settlement service for the industry.

The IATA expulsion is not the first time the carrier has faced operational penalties due to unpaid debts. In 2019 it was banned from South African Airports.

Source: norvanreports.com