Government has said it will only recapitalize the serial loss making national airline, Air Zimbabwe when it proves a worthy investment, Minister of Finance and Economic Development Patrick Chinamasa has said.
Chinamasa was speaking on Wednesday during the delivery ceremony of one of four Boeing 777s that government is leasing to Zimbabwe Airways at R.G.Mugabe International Airport.
“This project started in October 2016 with an aim to turn around the fortunes of Air Zimbabwe which currently is on its knees. We pondered over options and it became clear to me that we could not continue putting more resources into a bottomless pit.
“When the opportunity arose, we got into an agreement to buy four planes priced at $70 million which to date, we have paid up to $41 million of the total,” said Chinamasa.
He emphasized that money used for acquisition of the planes will come back with a profit hence the decision by government to lease the planes Zimbabwe Airways.
“This plane and those to come will be under Zimbabwe Aviation Leasing Company (ZALC). We have put out some capital and we want to recoup that capital through leasing to whoever.
We took a decision as government to lease the new planes to Zimbabwe Airways up to such a time as Air Zimbabwe develops a credible business plan to run the planes on a sustainable, profitable basis. So Air Zimbabwe must put its house in order first,” added Chinamasa.