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Saturday, April 17, 2021

Namibian Government liquidates Air Namibia, the national airline is not profitable

Economy Namibian Government liquidates Air Namibia, the national airline is not profitable

The Namibian has said that it can no longer afford to continually provide financial support to the financially strapped Air Namibia.

According to Namibia Minister of Finance Ipumbu Shiimi, the move follows a Cabinet decision to liquidate the national airline.

Speaking at a press conference in Windhoek on Thursday, Shiimi said the national airline has an asset value of N.dollars 183 million with liabilities of N.dollars 3 billion, which is unstainable and will jeopardise the economic recovery plan the Namibian government is currently seized with.

He explained that all options assessed point to the fact that the national airline is not profitable and it has not been profitable since its inception.

“The net economic cost operations of Air Namibia far outstrip the net gains and are thus unstainable. At this stage the country’s economy can no longer afford to perpetually provide financial support to Air Namibia at the expense of supporting economic growth and critical social services,” Shiimi noted.

The Namibia Minister of Finance also explained that it is estimated that so far government has spent more than N.dollars 8 billion on the national airline, noting that government has explored and considered all other options, which included engaging other airlines for potential investment and partnership.

Shiimi further noted that the welfare of the employees remains a priority and government has committed to an ex-gratia payment to the value of 12 month’s salary for each employee.

“Allegations in some quarters of the public accusing government of closing Air Namibia deliberately for the growth of another airline is totally misleading,” he stressed.

In the same vein, Shiimi explained that it was agreed that internal staff members from the Ministry of Finance and Ministry of Public Enterprises will serve as interim board members.

The selected board members are the finance ministry’s director of assets, cash and debt management, Marten Ashikoto, and Tjiuee Kaura, who is a director in the Ministry of Public Enterprises.

39 COMMENTS

    • Strangely amidst of all this, we still have some misguided fellows still talking of Zambia having an airline. Even if you stay in planet mars, you must still have an idea of what is practical and what is not, the many airlines limping daily are not any testimony to you at all

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  1. The one thing that has made Europeans very successful in spite of losing colonies in the last 60 years is that they have learned to cooperate. The European Airlines are no longer distinguishable as NATIONAL airlines. British Airways is with Spanish Iberia. Air France merged with the Dutch Royal Aviation Company (KLM) and Lufthansa with Brussels and Star Alliance etc. Nationality is not so important anymore when it comes to airlines and mergers are the order of the day if one has to survive. Air Zimbabwe is limping. South African Airways is in and out of ICU. Others are heavily subsidised by the tax-payer.

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  2. Zambia is preparing to go to the
    Sky.When others are liquidating
    Others grounding airlines we have
    Our think tank advising us to fly.
    We are always ahead of the rest.

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  3. Confusion, inconsistency and lack of strategies are the main causes of public owned enterprises failure. Why can’t Southern or SADC member countries come up with a single Airline. Otherwise these in and out ICU will be order of the day. In any case why can’t the Namibian govt find a strategic partner like what Kenya Airways did to survive.

  4. Zambian government, much as we know you aint good leaners, pretend to learn something from the Air Namibia liquidation

  5. The PF and their leader Edgar chagwa Lungu should open their ears and forget about zambia airways.Anyway the good part is that the cannot do anything because their time to govern is almost coming to an end.The namibian government have done a recommendable solution.

  6. Too bad. I used to enjoy flying first class with them. It’s a good thing Zambia airways will soon be here to fill the gap

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  7. Meanwhile the broke govt of Lazy Lungu wants to procure aircraft on another loan…these airlines have not been making any money just like Air Rwanda its never published its statements, but dull chaps in this govt think this is a busy opportunity…these are people who have never run a successful business.

  8. Meanwhile the broke govt of Lazy Lungu wants to procure aircraft on another loan…these airlines have not been making any money just like Air Rwanda its never published its statements, but d ull chaps in this govt think this is a busy opportunity…these are people who have never run a successful business

  9. Miyanda Kunda – We have been telling these morons for the past 7 years ….$30 million wasted just like that by that fooooool Brian Mushimba, engineer my foot!!

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  10. When a company is ferrying employees and government officials at subsidized prices. This is what happens. They have never made a profit. I wonder why? It is because a government thief was in charge from the beginning. This could have been solved from the very beginning.

  11. Nzelu – Which national airline in Africa has made a profit …they are all propped by govts…Ethiopian Airline is also the world’s 4th largest airline by the number of countries served is also struggling. Govts have no business in running airlines!!

  12. This govt of Lazy is so laid back that they have passed all G7 pupils who never completed their syllabus…really laughable!!

  13. Tarino writing or telling us that your comment has been moderate is meant to achieve what exactly? You have a very childish behaviour.

    I will soon commence writing my first book to be titled: the life struggles of a f00lish tribal upnd supporting diasporan

    I am talking to a few mentors about it like father katele kalumba. Be on the look out

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  14. Selfishness and not wanting to work together as Africans….bazungu created borders to weaken and divide us….its about time we started working as one Africa….We can have just a few airlines operating in the whole African continent

  15. Anonymous – You hit the nail on the head…it seems everyone wants to fly their flags on these loss making entities

  16. Kaizar Zulu the GRZ has a bad bad bad track record in any business venture.You’re the type of bureaucrats that made the demise of ZA possible.

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  17. Tumbuka was I or pf in office when ZA went into liquidation? Let us be sober in our comments. Stop thinking with your behind.

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  18. Hahaha Kaizar Zulu’s comprehension skills are zero.Tumbuka didn’t say you were in office at the time of liquidation…he simply said “you’re the type”

  19. It’s sad to see the struggles that the Aviation industry is currently facing. I guess this leaves a huge gap for Ethiopian Airlines to dominate the region. ET is pathetic, lost all my luggage and my child’s Car seat the last time I flew with them. I had to hold them accountable and battled with them until I was reimbursed for my losses. Be weary of flying with them.

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  20. This is what is happening to Zambia Airways to be. Spent money on training 25 Air cabin crew graduates from the Ethiopian Airline Aviation Academy. I do not know how much Zambia spent for breaking an agreement not to go ahead in securing the Russian Passenger Aircraft. And many others things I may not know. This is what happens when the PF government cannot listen to its people. I do not think that is how to grow economy. The money which has been spent on trying to get Zambia Airways off the ground should have been used on building profitable industries. I hope the government will learn a lesson from Namibian Air how to make the airline profitable or delay by a number of years before going in that business.

  21. How is it too bad for Namibia when they have made a right call amidst a non profitable entity. If government in Zambia used their heads Zesco, zampost, times of Zambia, ZNBC etc wouldn’t be contributing factors to a failing economy.

  22. How is it too bad for Namibia when they have made a right call amidst a non profitable entity. If government in Zambia used their heads Zesco, zampost, times of Zambia, ZNBC etc wouldn’t be contributing factors to a failing economy. While others let go their scrap which can be raw materials for other entities we in Africa like to hold on to it hoping one day it will he repaired but how much money and other opportunities would you have lost by doing that. To thrive one has to learn to be decisive.

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