The Zimbabwean government has pledged to absorb nearly USD300 million in debt owed by national carrier Air Zimbabwe (UM, Harare International) in a bid to relaunch it as a viable operation.

Minister of Transport Obert Mpofu told The Source that the airline is currently in talks with several potential investors.

“We have some interest from some reputable airlines which have shown keenness to partner Air Zimbabwe, especially when we clean up our balance sheet, which has been of great concern to potential investors,” he said. “Government has undertaken to warehouse that debt and let the new arrangement start on a clean slate.”

Air Zimbabwe's massive debt is attributed to significant losses incurred during the country's hyperinflationary period of 2001 to 2008 when it was forbidden, by cabinet decision, from charging fares in US Dollars. This, in effect, saw the airline charging the equivalent of USD25 for a return Harare International-London Gatwick flight resulting in enormous losses which have since carried over into the country's multi-currency era (2008 onwards).

According to the financial newswire, of the debt USD272 million is owed to local firms as well as staff retrenchment packages. The remainder is owed to foreign creditors such as Algerian air navigation service provider L'Etablissement National de la Navigation Aérienne - ENNA, Pan African air navigation provider L'Agence pour la Sécurité de la Navigation aérienne en Afrique et à Madagascar (ASECNA), China's National Aero-Technology Import and Export Corporation (CATIC), Aero Industrial Sales and American General Supplies.

In 2011, the Zimbabwean national carrier was linked to China's Hainan Airlines (HU, Haikou) only for the deal to collapse when government baulked at assuming Air Zimbabwe's then USD140 million in debt. In addition, the two had also failed to agree on management's structuring as well as Harare's reluctance to grant Hainan a 65% controlling stake rather than 45% as proposed.

Though it once offered flights throughout Africa, Europe, and Asia, Air Zimbabwe's sphere of operations has been reduced to flights between Harare International, Bulawayo, Victoria Falls, and Kariba locally, and Johannesburg O.R. Tambo regionally. Its operational fleet currently consists of two B737-200Advs, two B767-200(ER)s, one MA-60, and one recently reactivated A320-200.