Gunship
14th Jan 2006, 13:47
Harare - Zimbabwe's national carrier has reduced flights to international destinations and is battling major financial losses and chronic network shrinkage, says an internal report on Thursday.
A turnaround strategy report said the airline's routes shrank from 15 international destinations to nine, while regional destinations dropped from six to a mere one.
The report said: "Revenue has also declined... while costs of operations have gone up considerably due to high fuel costs, high interest and inflation rates and the unfavourable exchange rate, ageing equipment and a combination of other factors."
It said that as a result, the airline was losing $1.2m in potential revenue daily, while the national carrier faced a cumulative debt of $14.6m.
Official rates
Inflation in Zimbabwe had rocketed to 502%, while the Zimbabwean currency had fallen to 77 500 Zimbabwean dollars to the greenback at official rates.
Dwindling tourism numbers had contributed significantly to Air Zimbabwe's route problems as visitors from the country's traditional tourist markets such as the United States and the European Union shunned the southern African country.
Western tourism numbers had dropped significantly since the 2000 parliamentary polls, which foreign observers claimed were rigged to give President Robert Mugabe's ruling party victory.
The report said Air Zimbabwe was losing its market share in the region to competitors including British Airways and South African Airways.
Airlines to improve its viability
Last month, the airline was forced to ground its fleet after it ran out of jet fuel, which resulted in the suspension of its general manager.
It said it was planning alliances with various other international airlines to improve its viability.
When contacted, acting chief executive Oscar Madombwe refused to comment on the report.
However, transport minister Christopher Mushowe said he hoped the airline's turnaround plan would result in change of fortunes for the carrier.
Mushowe said: "We gave the board that document at the end last month so that it can be used in the turnaround plan.
"Air Zimbabwe and other various arms of the tourism sector are working together to help and change the fortunes of the industry."
From News 24 (http://www.news24.com/News24/Africa/Zimbabwe/0,,2-11-1662_1858931,00.html)
A turnaround strategy report said the airline's routes shrank from 15 international destinations to nine, while regional destinations dropped from six to a mere one.
The report said: "Revenue has also declined... while costs of operations have gone up considerably due to high fuel costs, high interest and inflation rates and the unfavourable exchange rate, ageing equipment and a combination of other factors."
It said that as a result, the airline was losing $1.2m in potential revenue daily, while the national carrier faced a cumulative debt of $14.6m.
Official rates
Inflation in Zimbabwe had rocketed to 502%, while the Zimbabwean currency had fallen to 77 500 Zimbabwean dollars to the greenback at official rates.
Dwindling tourism numbers had contributed significantly to Air Zimbabwe's route problems as visitors from the country's traditional tourist markets such as the United States and the European Union shunned the southern African country.
Western tourism numbers had dropped significantly since the 2000 parliamentary polls, which foreign observers claimed were rigged to give President Robert Mugabe's ruling party victory.
The report said Air Zimbabwe was losing its market share in the region to competitors including British Airways and South African Airways.
Airlines to improve its viability
Last month, the airline was forced to ground its fleet after it ran out of jet fuel, which resulted in the suspension of its general manager.
It said it was planning alliances with various other international airlines to improve its viability.
When contacted, acting chief executive Oscar Madombwe refused to comment on the report.
However, transport minister Christopher Mushowe said he hoped the airline's turnaround plan would result in change of fortunes for the carrier.
Mushowe said: "We gave the board that document at the end last month so that it can be used in the turnaround plan.
"Air Zimbabwe and other various arms of the tourism sector are working together to help and change the fortunes of the industry."
From News 24 (http://www.news24.com/News24/Africa/Zimbabwe/0,,2-11-1662_1858931,00.html)