According to Namibian media, three foreign airlines, Lufthansa, Ethiopian Airlines and South African Airways have shown interest in acquiring equities in Air Namibia. Namibia’s public enterprise’s minister Leon Jooste is leading negotiations. Of the three, it was also reported that Lufthansa appeared to be the keenest contender. The Minister stated that by opening it to foreign investment, Air Namibia would be able to “optimize potential future growth opportunities for the airline.
Air Namibia operates from two hubs, Windhoek Hosea Kutako International Airport and at Windhoek Eros Airport for domestic flights flying to 18 destinations in nine countries in Africa and Europe.Air Namibia has been facing liquidity problems forcing its Airbus A319’s to be grounded. The Namibia Airports Company (NAC) refused to renew Ground Handling Agreement with Air Namibia, citing non-compliance to a number of clauses in the agreement. Apart from its NAC debt, Air Namibia also had to seek government assistance to settle debts with MRO providers in Cyprus and South Africa. Air Namibia’s financial woes started as a result of an unresolved EUR25 million (USD28.3 million) claim filed by the liquidator of defunct Belgian carrier Challengair.
Despite the efforts to restructure the Airline to turn it around, Air Namibia has become an increasingly costly project for the government in recent years. Later the government decided to throw open Namibian skies to foreign competition with the likes of Ethiopian Airlines, KLM, Qatar Airways, South African Airways, etc. Foreign airlines now control 70% of Namibia’s weekly international seats.
