High-stakes game: Zimbabwe wants to attach SAA assets in money owed 'tit for tat'

It's reported that Zimbabwe's government plans to attach South African Airways' assets in that country because the airline allegedly owes R$2.4 million in unpaid fees for meteorological weather services.

At the same time, Zimbabwe owes SAA $59 million in non-interest bearing blocked funds.in non-interest bearing blocked funds, according to Business Day.

In conversation with Stephen Grootes, SA Flyer Magazine editor Guy Leitch points out that around $62 million in revenue that SAA earned in Zimbabwe has been owed to the airline since 2016. That amounts to around R1 billion.

Leitch says these blocked funds remain a huge stumbling block for the recovery of the South African airline.

"Zimbabwe is actually only eighth worldwide on the list of bad payers, or of blocked funds as we call them."

"What's essentially going on here is that foreign airlines fly into a country and local people buy tickets, and they've got to be able to export the money back to the airline and it just hasn't been happening."

Guy Leitch, Editor - SA Flyer Magazine

Leitch sees this current version of the argument as Zimbabwe just 'trying a tit for tat'.

They're attempting to delay any further pressure on repatriating the $62m by putting in this comparatively small claim of $2m for weather services, he says.

The demand also flies in the face of the bilateral treaties and agreements that control air services between countries, Leitch adds.

"The big risk is that an SAA plane gets grounded in Harare, and that of course completely changes the balance of power, if you like."

"Nigeria had the same problem - just bigger, and eventually Emirates and many others stopped flying there. It obviously causes massive harm to the economy, so it's a very high stakes game that Zimbabwe is playing at this stage."

Guy Leitch, Editor - SA Flyer Magazine

For more from Leitch, listen to the interview audio at the top of the article