Staff Writer
The Ministry of Finance has ruled out availing funds for Air Namibia’s touted new business plan, saying it’s not viable and not sustainable.
This comes as the business plan will require N$7 billion to be implemented, including management of the national carrier’s existing N$5 billion debt.
“This means for the new business plan to be implemented taking the outstanding debt into account, an amount of N$7 billion will have to be spent in the current financial year, which makes it unaffordable as resources are needed for other priorities such as health, education, housing and sanitation,” the Ministry of Finance said.
The ministry said although no decision had been made to liquidate the airline; it was currently considering various options to restructure it.
“The Chairperson of the Cabinet Committee on Treasury fully recognizes the importance of having a national airline and therefore, it is looking at ways of finding a sustainable and affordable model for Air Namibia.”
