Air Namibia reflects on challenging 2019
National airline, Air Namibia said the challenges they experienced in the past year will go a long way as a key input for turning-around their financial fortunes.
Looking back at the factors which threatened the airline’s operations in 2019, Xavier Masule, Interim CEO said the key focus for January and February 2020, driven from the top with the Board of Directors’ involvement, is the finalization of the airline’s Integrated Strategic Business Plan, which will be the blueprint to achieve desired financial objectives.
“The envisaged Integrated Strategic Business Plan will contain business model and organizational structural changes, with strategic initiatives aimed at revenue enhancement, strategic cost containment, efficiency improvements, customer service excellence, and human capital development & productivity improvement,” Masule said.
Masule stressed that the Air Namibia will persist despite some of 2019s challenges which included the negative growth seen in Air Namibia’s key source markets for passengers and cargo traffic (Namibia, South Africa and Angola), the Challenge Air court case, cash flow shortages and suppliers changing their trading terms due to possible closure reports.
“While 2019 was challenging and we managed to go through up to the end, 2020 will be another year with its own set of challenges. Market conditions are expected to continue being tough while the airline is expected to stand on its own feet and become self-reliant,” Masule said.
According to Masule, due to a government guarantee backed loan of N$ 578 million, the two grounded Embraer ERJ 135’s are expected to enter service during the first quarter of 2020.