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Parliamentary committee backs airline’s bid to charge fares in forex
Tuesday 30 October 2007
 

By Thulani Munda 

HARARE – Cash-strapped Air Zimbabwe won important backing from Parliament’s portfolio committee on transport to charge passengers in foreign currency for specific routes in a bid to raise hard cash for the almost bankruptcy national flag carrier. 

The parliamentary committee on Monday said it backed a request by Air Zimbabwe board chairman Mike Bimha to demand payment in foreign currency to help shore up the struggling airline that has also suffered because of an acute fuel crisis gripping Zimbabwe over the past eight years. 

“The committee met and resolved that they will support Air Zimbabwe’s bid (to charge fares in forex),” said committee chairman Leo Mugabe.  

Air Zimbabwe, which according to Bimha pays 70 percent of costs in foreign currency while only 10 percent of revenue was in hard currency, will still require approval from exchange control authorities in order to be able to charge passengers in hard currency. 

Air Zimbabwe fares are the lowest in the region. It charges Z$87 650 000 for a return ticket to Johannesburg. South African Airways charges R2 120 inclusive of airport taxes. 

Zimbabwe’s national carrier has since the country’s economic crisis started in 2000 lost its position as one of the best airlines in Africa due to mismanagement and interference from the parent Ministry of Transport and Communications. 

Starved of cash to re-equip, Air Zimbabwe uses mostly obsolete technology and equipment while nearly all its planes are between 16 and 20 years old.  

The Zimbabwean airline could be banned from European skies if it fails an audit and evaluation of its operational management and control systems carried out by the International Air Transport Association last week. -ZimOnline

 

 
  
    
    
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