International Airlines rescued from payments backlog

Published: 03 August 2017

THE Reserve Bank of Zimbabwe (RBZ) has begun allocating foreign currency for remittance of cash from ticket sales by international airlines, which have been failing to repatriate payments due to foreign currency shortages, The Financial Gazette has reported.

International airlines had started tightening screws on liquidity-starved Zimbabwe owing to a worsening foreign currency crisis that had resulted in a huge backlog of unremitted ticket payments, with some having been outstanding for over 140 days.

Board of Airlines Representatives chairperson, Winnie Muchanyuka, who is also South African Airways country manager, said although there was still a backlog, the situation was now under control.

"The issue of foreign currency shortages is not a secret in Zimbabwe. Constant engagement between the airlines, IATA (International Air Transport Association) and the RBZ has yielded results. Although we have a backlog, the situation is being managed so that the airlines do not suffer," she said.

Muchanyuka said Zimbabwe's situation was currently not as bad as in other countries.

"Zimbabwe's situation is less than what is happening in Angola, not that we are trivialising the issue but the repatriations have been going through every single week to IATA to distribute to the airlines," she said.

IATA dispatched its top executives at the beginning of March for crucial meetings with authorities over delays in repatriation of payments for ticket sales.

Muchanyuka could not say how much was still locked in the country since IATA was in charge of the figures.

She said international airlines were playing a significant role in the revival of Zimbabwe's tourism sector.

"This gives you the assurance that the tourism market is growing. There is great potential… we need a vibrant market where there is competition which in turn will lower fares," she said.
- fingaz

Tags: RBZ,