May 2010 covers_Covers.qxd - World Airnews

28 WORLD AIRNEWS, MAY 2010.
AIR MALAWI FACES LIQUIDATION
Frank Jomo reports from Blantyre
THE COMMERCIAL Court in Malawi has given the country’s
flag-carrying airline, Air Malawi, 21 days from March 25
to discuss with a Moroccan company, Snecma Morocco
Engine Service, how to settle a debt of US$3,4-million in a bid
to avoid liquidation. The deadline, April 15, occurred after this
edition went to press
The Moroccan firm went to court in Blantyre asking it to liquidate
Air Malawi over an unsettled $3,4 million debt the airline
owes the Moroccan company for servicing its aircraft.
The case is the latest of the problems facing Air Malawi which
had been showing signs of resuscitation recently. According to a
notice of the petition to have the company liquidated published
in Malawi’s Daily Times, Snecma wants the court to declare Air
Malawi bankrupt and have all its assets sold in order to honour
its debts.
Air Malawi lawyer, Gabriel Kambale, acknowledged the debt
and asked the court to allow it discuss with the Moroccan firm
how best to settle the debt. He said the Malawi Government,
which was the sole owner of the airline, had committed to pay
back the debt.
Earlier, Finance Minister, Ken Kandodo, said Government was
strategising on how best to bail out Air Malawi from its financial
woes. “The Malawi Government is the sole owner of Air Malawi
and we have the obligation, using the legal framework that governs
the airline, to protect it from being liquidated. There is no cause
for alarm,” Kandodo Banda told World Airnews in an interview.
Last year during a budget presentation in Parliament, Kandodo
told legislators that government intended to finance Air Malawi
to pay some of its debt.
Air Malawi, which was in talks with South Africa’s Comair for a
possible take-over in 2009, has debts amounting to K4,1-billion.
The Malawi leader, Bingu wa Mutharika, and his cabinet have
been discussing whether to liquidate the company or bring in a
new partner to help it run the airline. But Mchungula who told a
Parliamentary Committee on Transport and Public Works later that
the country would lose all foreign exchange earnings it received
from air transport if the country’s national flag carrier was privatised
or liquidated, said: “The cost needed to liquidate the airline
will be more than what is needed to resuscitate it.” Q
KENYA AIRWAYS REJOINS AFRAA
SIX YEARS after it had resigned from the African Airline Association
because of what it claimed to be “principled views on certain
issues”, Kenya Airways has rejoined the association.
The airline gave as its reason for rejoining the change in
AFRAA leadership and a commitment to address the pertinent
issues. Dr Titus Naikuni, the group managing director and CEO
of Kenya Airways has called on the association leadership to
maintain accountability on its operations.
The airline’s Southern Africa area manager, Rosemary Adogo,
said this was a step in the right direction and that she looked forward
to a strong working relationship with the organisation.
Noting that “an all talk, no action” culture had bedevilled the
association, the body’s new secretary general, Nick Fadugba,
said that very little had been achieved by AFRAA. He committed
to Kenya Airways that the association would actively seek
collaboration with aviation training institutions in Africa to
generate much needed synergy. Q