Zambian Airways Sued, Under Receivership

Professional Insurance Corporation Zambia (PICZ) Limited has sued Zambian Airways Limited for US$135,916 (K754 million) debt in unsettled premiums, the Zambia Daily Mail reported. On January 13, 2009, following the airline’s failure to settle the outstanding insurance premiums, the insurance cover was cancelled and Zambian Airways was charged premiums for time on risk amounting to US$135,916. In addition, the Lusaka High Court has ordered an attachment of all identifiable assets belonging to Zambian Airways, which has now been placed under receivership by its lenders. This means that the airline will not have access to the assets until its case with National Airports Corporation Limited (NACL) is disposed of. NACL obtained a judgement in default of appearance and defence against Zambian Airways for the airline’s failure to pay US$1,020,78.95 (K5.6 billion) in passenger service charges collected by the airline on behalf NACL at Lusaka, Livingstone, Mfuwe, and Ndola international airports. The judgement also ordered Zambian Airways to pay NACL US$1,033,823.08 (about K5.7 billion) in respect of aeroplane parking, ground handling, air navigation and aeronautical services provided by the corporation to the airline as at October 2008. Read more.