EDITOR — The Finance minister must not act as if he is an agent of some aircraft manufacturers. AirZim needs not buy new air craft. It can lease them. All it needs, however, are the following:
— Working capital, say $100 million to fund some severance packages, pay expenses for the first six months, repair 3 of its old planes and lease not more than 3 others: two 50 to 100 seat turbo-props and one long haul Boeing 777, or 787 or Airbus 340, or 350. The important point is lease, not buy.
— Ask creditors to the airline to take a “hair cut” of US$100 in exchange of,
— Converting half the remaining debt (equal to $120m) into equity, and re-scheduling the other half into a long-term loan into a new loan.
— Good management thereafter and minimal interference from politicians.
I believe AfDB and DBSA would support the scenario above. Talk of needed $770m is reckless and suggests the minister is out of his depth.
Muka Dodo