Air Namibia threatens court action over licence

Staff Writer

Air Namibia is threatening to approach to the High Court for an urgent interdict if the Transportation Commission of Namibia (TCN) does not withdraw its decision to suspend the airline’s Scheduled Air Services Licence and afford it reasonable time to respond to its concerns over its operations.

The move by the national carrier comes after the TCN in a surprise moved on Monday resolved to suspend Air Namibia’s Schedules Air Services Licence No 00012 with effect from 23h59 today, Wednesday, 8 July 2020. In letter written to TCN by Air Namibia’s acting Managing Director, Elia Erastus, and seen by the Windhoek Observer, the airline has given the regulator until 10 pm today (Wednesday 8th of July ) to reverse its decision or face legal action. “Should we not receive your undertaking aforesaid, we shall be constrained to approach the High Court of Namibia for an urgent interdictory and subsequent review relief, including declaratory relief to the extent necessary and further including an adverse cost order premised upon the wholly unlawful and unreasonable conduct of the commission,” the letter reads.

Erastus in the letter addressed to TCN Chairperson, Eldorette Harmse, accused the organization of abusing its power through its decision to cancel the airlines licence without giving it the right to respond to its concerns. These concerns include its precarious financial position, which compromises its ability to provide safe, satisfactory and reliable air service. “We place on record that the referenced resolution by the Commission to suspend the said licence within less than 48 hours from receipt of your letter is grossly invasive of Air Namibia’s constitutional right to be afforded a reasonable opportunity to be heard prior to the invocation of any statutory powers to invoke a sanction,” the Air Namibia Acting MD’s letter reads.

“Furthermore, take record that the Commission is precluded from invoking its powers to suspend for reasons other than those recognized in relevant legislation, and that it may only invoke such power upon recognized grounds and further only upon giving reasonable notice of intended sanctions. Your notice is accordingly not only vexatious and grossly unreasonable, but constitutes an impermissible abuse of power.”

The suspension of Air Namibia’s license prohibits it from operating commercial flights but it will be allowed to operate humanitarian repatriation and evacuation flights during the coronavirus state of emergency. The TCN’s decision comes as 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.

The business plan will require N$7 billion to be implemented, taking into account the national carrier’s existing N$5 billion debt.President Hage Geingob in his State of the Nation Address on June 4th, called for the liquidation of the airline.

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