Air Namibia has signaled the government that it would need infusion of the government resources to keep its operations going. The board of the Airlines has warned the government it would pull the shutters if it does not get a N$1.6 billion bailout by the end of this month. It is important to note that the works ministry, the nodal ministry of airlines, has shot down any plans to rescue the embattled company.
The national airline’s former board chairperson Deidré Sauls-Deckenbrock, wrote a communication to the ministry a day before she resigned from the board some weeks ago, detailing the present state of the airlines. She asked for a short-term financial loan, while the mid-term national budget is being finalized. Without these funds, she warned that the airlines have to close the operations
The dire financial state of the Namibia Air has a history. It had lost a court battle with a Belgium company called Challenge Air some years ago. Namibia Air had agreed to lease a 351-seater plane from Challenge Air. The deal was subsequently called off, since the aircraft was found to be defective. However, Challenge Air went to court and the Namibia Air was slapped with a fine of N$ 300 million as a result of the lost court case. Now, the Namibia Air is wanting to enter into negotiation with the Challenge Air to settle the matter. That is why the Airline is asking for an infusion of more resources.
