Select Page

Treasury bails out Air Namibia

Treasury bails out Air Namibia

Air Namibia’s spokesman Paul Nakawa said this week that the monthly subsidised payment from the Ministry of Works and Transport for leased domestic flight aircrafts that was rejected by Treasury last week would be provided to the national air carrier.

“We would like to assure the market and all stakeholders that it is business as usual,” Nakawa said in a statement.

The monthly budget for the leased air craft from a subsidiary of Air France, HOP, is in excess of a third of Air Namibia’s subsidised budget and is dependent on the USD to NAD currency exchange rate.

The actual figures are not available as Air Namibia is consolidation its financial reports for a 10 year period. Air Namibia continues to operate as normal, serving the flying public for local, regional and international flights.

“We wish to inform all stakeholders that Air Namibia has valid and legally binding agreements with HOP!, for the use of four Embraer Jet aircraft, used for servicing of domestic routes and some regional routes.” Nakawa said.

The Minister of Works and Transport, Apheus !Naruseb at the Air Namibia key Stakeholder Conference , held on 17 May said that it is encouraging to note that Air Namibia will be issuing their annual report for the last 10 years in the near future.

“The last report was issued in 2003/4, why this is not good at all, the good news is that you are catching up, and please ensure you bring this element of reporting up to date, and then maintain the momentum going forward,” !Nauseb said.

The lease agreements with HOP! terminates in the first and second quarter of next year 2018. Air Namibia, without reservation, Nakawa said wishes to state that its rights and obligations from the aircraft lease agreements are well documented in the written lease agreements.

The national airline expects the operations to continue as normal, without any interruptions. The scheduled flights remain intact and will continue to be operated as before.

Nakawa said during these difficult times, we remain optimistic that the short to medium term funding can be resolved, to ensure that the national airline continues to carry out its mandate, which is to provide air transport services, promote tourism and encourage business investment in Namibia.

About The Author

Freeman Ya Ngulu

Freeman Ngulu is an investigtor, an author and a keen entrepreneur. His speciality is data journalism for which he loves to dig deep into topics often ignored by mainstream reporting. He tweets @hobameteorite.