Taken from The Herald site:
Fly540 yet to receive operator’s certificate
By Golden Sibanda
Lonzim subsidiary, Fly540 Zimbabwe, initially scheduled to start operations last year, is yet to receive an air operator’s certificate from the Civil Aviation Authority of Zimbabwe.
It was not immediately clear as to the issues surrounding the licencing with CAAZ general manager Mr David Chawota saying he was not aware of any constraints in issuing out the licence.
He said Fly40 could approach him directly if it continued to face difficulties obtaining the air operator’s certificate.
Fly540 Zimbabwe, 90 percent-owned by LonZim, had planned to take to the skies in September last year. The date was moved to October of the same year, but it still came unstuck as it had not obtained an operator’s certificate.
Chief executive Mr Geoffrey White said the company would soon launch Fly540 Zimbabwe and was in the process of scouting for viable routes.
"The company has allocated funds from existing resources for the deployment and establishment of the airline. Operations will be based at Harare Airport to serve as a regional freight and passenger operation as and when the market develops.
"LonZim has completed the acquisition of the initial aircraft to launch the Fly540 service in Zimbabwe and is monitoring the market opportunity and the provision of infrastructure to schedule deployment targets while the air operator’s certificate for Zimbabwe is being obtained," said Mr White.
The London conglomerate is hopeful operations would now begin before the end of this quarter provided it gets the operator’s licence.
Listed on London’s Alternative Investment Market, the investment conglomerate has already splashed US$4,3 million on an ATR 42 turbo-prop aircraft from Lonrho Aviation Fleet.
Initially, LonZim would operate two passenger aircraft and a single cargo plane.
The airline project is a partnership with local private airline firm, Sol Aviation.
The United Kingdom-based conglomerate has full and controlling interests in a number of companies in Zimbabwe and is searching for more opportunities as the economic and political conditions improve.
Presently, LonZim owns 60 percent of Zimbabwe Stock Exchange-listed Celsys, which specialises in security printing, information technology and telecommunications.
It owns 100 percent of solvents and chemicals distributor Millpal, 51 percent of refrigerated distributor of pharmaceutical and medical products Panafmed, and 51 percent of mobile software provider ForgetMeNot.
In addition, LonZim owns 100 percent of electronic funds transfer solutions provider Paynet, and 100 percent of the exquisite Leopard Rock Hotel.
Outside Zimbabwe, LonZim holds 79 percent of beachfront-located Aldeamento Turistico de Macuti Hotel in Mozambique.
LonZim raised £28,7 million at its initial public offer and, in line with its mandate, the firm acquired eight businesses in various sectors between 2007 and 2009.
Each business was selected due to its ability to deliver rapid growth and build market share as the Zimbabwean economy recovers. Several of these operations are now in dominant positions in their respective markets.
LonZim said it has supported the businesses acquired and in some cases subsidised their operating costs during the worst of the economic turmoil in 2008.
The firm paid wages and overheads for businesses that, by necessity, had to operate on a barter trade system with the customers and the suppliers, as hyperinflation destroyed the foundation of the economy in Zimbabwe.
However, following a drastic change in the local economy and recapitalisation of the businesses, LonZim’s subsidiaries are now in a strong position.