Grant Thornton managing director and Air Zimbabwe administrator Reggie Saruchera has reportedly been relieved of his role at the troubled national carrier after being pushed out by the political establishment
Mr Saruchera has been the airline’s administrator since 2018 when it was placed under reconstruction after recording consecutive years of losses.
A report from the administrator detailing the airline’s state reads:
“Air Zimbabwe’s operating aircraft reduced from a peak of seven in 2009 to two in 2018. In addition, the equipment in use is over 25-years old resulting in high operating costs. The airline is operating in an environment where it is earning most of its revenue in local RTGS. We note however that most of the airline’s costs are denominated in foreign currency.”
In a proposed turn-around plan, the airline’s administrator urged government to put in place a foreign currency funding model which will protect the airline from the volatile local currency
However, Saruchera’s dismissal has been attributed to failure to turn the airline’s fortunes around despite mounting administration fees. The Zimbabwean government has reportedly run out of patience.
But the airline faces a myriad of issues despite embarking on a turn-around plan. For one, the covid pandemic remains an existential threat for troubled airlines such as Air Zimbabwe
Last year, two Boeing 777-200ER aircraft were acquired from Malaysian Airways and both remain on ground as the airline does not have the capacity to operate them, especially in a world where the outlook of long-haul travel remains uncertain.
The airline has faced a labor dispute spanning over 5 years after 300 workers were fired in 2015. A landmark judgement delivered by the Supreme Court in December 2020 ordered the national airline to reinstate them to the positions they held when they were expelled
Administrator Reggie Saruchera has been under fire since, with accusations of mismanagement, incompetence and illegal refusal to pay back the salaries due to the fired workers
The returning workers have been calling for Saruchera’s head and received the backing of the court which said:
“The conduct of the respondent has unduly and unjustifiably delayed the reconstruction of (AirZim) and frustrated the applicants’ members as employees who are now creditors to (AirZim) owed over $100 million, and the debt keeps mounting each passing day because the employer-employee relationship remains subsisting as was confirmed by the authoritative Supreme Court judgement of 7 December 2020. The first respondent has failed to execute his duties set out in the Act under which he was appointed as an administrator, grossly neglecting payment of the applicants’ salaries and benefits owed and accruing from July 2015 running into millions of dollars, hence the application for his removal owing to the failure to protect and safeguard the concerned employees’ right to be paid their salaries and wages”
Air Zimbabwe owes up to USD 379 Million in both local and foreign debt
