American General Supplies (AGS) seized the Boeing 767-200 plane when it landed enroute from Harare.
The incident came barely a week after a South African company impounded another Air Zimbabwe plane over an outstanding debt of $500,0000.
Bid Air demanded the outstanding money for ground handling services at OR Tambo International Airport in Johannesburg before releasing the Boeing 737-500 plane.
Air Zimbabwe chief executive officer Mr Innocent Mavhunga said they were negotiating with AGS to release the plane.
“The debt has been outstanding for sometime and the plane has been impounded after we failed to meet the deadline of November 30 to settle to meet,” he told the state owned Herald newspaper.
He said the government, which is the major shareholder had indicated that it had no money to settle the ailing airline’s mounting debts.
“The plane is supposed to depart London today (Tuesday) evening at around 8:30 and we are hopeful that if our negotiations succeed, we will have the plane back,” Mr Mavhunga said.