Iata wants US$17m deposit from Air Zimbabwe

Air Zimbabwe will have to put down a US$1.7-million deposit with The International Air Transport Association (Iata) before the airline’s Bank Settlement Plan is reinstated, and Iata allows the airline to participate in the association’s flight booking services. Iata suspended the cashstrapped airline in May over a US$280 000 debt owed to the association’s Billing and Settlement Plan (BSP). The BSP system allows airlines to bill each other without immediately having to remit cash. An Air Zimbabwe official is quoted as saying that Iata is now asking for US$2 million before reinstating the airline to the billing system. The $1.7-million deposit is to cover costs if Air Zimbabwe defaults again on its commitments to other airlines. State-run Air Zimbabwe has faced strikes by cabin crews since September 2010 over unpaid allowances. Air Zimbabwe’s daily Harare-Johannesburg service, and twice a week Harare- London flights are its only major international routes