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Loss-making Windhoek Luanda route abandoned again by Air Namibia

Loss-making Windhoek Luanda route abandoned again by Air Namibia

National airline, Air Namibia will no longer service the Windhoek Luanda flight route as of 9 February, citing non-profitability as the main consideration for this step.

The Windhoek Luanda route was Air Namibia’s most profitable route from 1998 to 2015, but according to the local airline in a statement this week, the situation changed when the Angolan economy weakened and passenger demand for air travel declined.

“To adapt to these economic changes, from 2016/17 Air Namibia reduced the number of flights from 7 to 6 per week, then to 5 and by 2018/19 the number of flights was reduced to 4 per week,” they said adding that the route was suspended from June to October 2019 due to viability reasons; services were re-instated during October 2019 to January 2020 which is the high season.

According to Air Namibia’s interim Chief Executive, Xavier Masule, the route is loss making to a level which is not sustainable, and there are no prospects of the situation changing in the foreseeable future.

Meanwhile passengers booked on affected flights will be rebooked and accommodated on flights operated by the Angolan national airline, TAAG. “Their travel itineraries will not be affected negatively,” the airline stated.

Air Namibia started flying to Luanda in 1992 with two flights per week. The frequency increased steadily reaching seven flights per week in 2014 and 2015.


 

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Following reverse listing, public can now acquire shareholding in Paratus Namibia

Promotion

20 February 2020, Windhoek, Namibia: Paratus Namibia Holdings (PNH) was founded as Nimbus Infrastructure Limited (“Nimbus”), Namibia’s first Capital Pool Company listed on the Namibian Stock Exchange (“NSX”).

Although targeting an initial capital raising of N$300 million, Nimbus nonetheless managed to secure funding to the value of N$98 million through its CPC listing. With a mandate to invest in ICT infrastructure in sub-Sahara Africa, it concluded management agreements with financial partner Cirrus and technology partner, Paratus Telecommunications (Pty) Ltd (“Paratus Namibia”).

Paratus Namibia Managing Director, Andrew Hall

Its first investment was placed in Paratus Namibia, a fully licensed communications operator in Namibia under regulation of the Communications Regulatory Authority of Namibia (CRAN). Nimbus has since been able to increase its capital asset base to close to N$500 million over the past two years.

In order to streamline further investment and to avoid duplicating potential ICT projects in the market between Nimbus and Paratus Namibia, it was decided to consolidate the operations.

Publishing various circulars to shareholders, Nimbus took up a 100% shareholding stake in Paratus Namibia in 2019 and proceeded to apply to have its name changed to Paratus Namibia Holdings with a consolidated board structure to ensure streamlined operations between the capital holdings and the operational arm of the business.

This transaction was approved by the Competitions Commission as well as CRAN, following all the relevant regulatory approvals as well as the necessary requirements in terms of corporate governance structures.

Paratus Namibia has evolved as a fully comprehensive communications operator in Namibia and operates as the head office of the Paratus Group in Africa. Paratus has established a pan-African footprint with operations in six African countries, being: Angola, Botswana, Mozambique, Namibia, South Africa and Zambia.

The group has achieved many successes over the years of which more recently includes the building of the Trans-Kalahari Fibre (TKF) project, which connects from the West Africa Cable System (WACS) eastward through Namibia to Botswana and onward to Johannesburg. The TKF also extends northward through Zambia to connect to Dar es Salaam in Tanzania, which made Paratus the first operator to connect the west and east coast of Africa under one Autonomous System Number (ASN).

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