problems facing air zimbabwe and how to solve them
Air Zimbabwe, the major airline of Zimbabwe has been facing perennial losses for the past decade (since 1994), due to various reasons some of which has lead to the highest recorded level of labor turnover in the country (CEO’s report in Zimbabwe Review).This has been owing to factors like poor management from the subordinates and also bad publicity from the region. Also lack of proper and up to date technology has a contributing factor towards the losses.
Poor cost cutting strategies
Air Zimbabwe has been practicing poor cost cutting strategies. This has seen it pulling out of lucrative routes which covered a substantial amount of their costs for example the Harare to DRC, Harare to Dar Es Salaam, Harare to Lilongwe and also Harare to Nairobi routes in their bid to cut costs (Zimbabwe Review). Although according to the CEO, Dr. P. Chikumba pulling the flights out was a temporary measure owing to the operational challenges, lack of proper management and tracking of progress made them into thinking that they were better off without the routes. This led to losses since the routes they had were not as profitable and able to meet all the costs being incurred by the airline. This also led to the staff turnover; workers found out that the company was now failing to honor their debts so it was easier for them to go out for greener pastures.
Regulation and sanctions
Regulations and sanctions from major airlines also contribute to the airline’s perennial debt and to some extent labor turnover. There is no airline that survives on its own just as there is no island that can survive on its own. Air Zimbabwe has been shut out from various partnerships and also from the IATA due to sanctions from other countries (Zimbabwe Review). Although this has to do with the external environment it is limiting its chances of ever getting in lucrative routes that guarantee them profitable returns. In most events air Zimbabwe’s planes are prohibited from entering certain air space as
Poor cost cutting strategies
Air Zimbabwe has been practicing poor cost cutting strategies. This has seen it pulling out of lucrative routes which covered a substantial amount of their costs for example the Harare to DRC, Harare to Dar Es Salaam, Harare to Lilongwe and also Harare to Nairobi routes in their bid to cut costs (Zimbabwe Review). Although according to the CEO, Dr. P. Chikumba pulling the flights out was a temporary measure owing to the operational challenges, lack of proper management and tracking of progress made them into thinking that they were better off without the routes. This led to losses since the routes they had were not as profitable and able to meet all the costs being incurred by the airline. This also led to the staff turnover; workers found out that the company was now failing to honor their debts so it was easier for them to go out for greener pastures.
Regulation and sanctions
Regulations and sanctions from major airlines also contribute to the airline’s perennial debt and to some extent labor turnover. There is no airline that survives on its own just as there is no island that can survive on its own. Air Zimbabwe has been shut out from various partnerships and also from the IATA due to sanctions from other countries (Zimbabwe Review). Although this has to do with the external environment it is limiting its chances of ever getting in lucrative routes that guarantee them profitable returns. In most events air Zimbabwe’s planes are prohibited from entering certain air space as