Staff Writer
Air Namibia has ceased all its international repatriation missions amid fears its aircrafts could be attached by creditors following President Hage Geingob’s announcement that he wants to liquidate the airline.
According to insiders, the airline’s board is said to have met over the weekend where it was agreed that it would avoid international flights amid concerns that its creditors could attempt to attach its aircrafts as part of efforts to recover funds owed, following the President’s announcement on Thursday during his State of the Nation Address.
“Air Namibia must be liquidated; we have a serious problem with Air Namibia. It must be restructured. It is not making any profits and it is just being bailed out. We must do something about it,” Geingob said.
The airline is said to have also communicated its flight suspension decision to the Ministry of International Relations, with whom it was currently conducting repatriation mission of stranded Namibians, a move which now spells doom for those on lockdown in various countries around the world.
When contacted for comment, Air Namibia Board Chairperson, Escher Luanda said, “That is an operational issue. I advise that you contact the acting Chief Executive Officer,” he said.
On plans by government to liquidate the carrier, Luanda said the airline had not received any formal communication to that effect.
“I am not aware of those government plans and we have not received any formal communication to that effect. As the Chairperson of the board, I would have received some formal communication,” he said.
The development comes as a cabinet committee has recommended that the airline be liquated citing its precarious financial position, which has seen government over the years providing a bailout including the recent provision of salaries for staff after the carrier was grounded due to state of emergency restrictions to limit the spread of the pandemic.
“The Cabinet Committee on Treasury met last Wednesday to discuss the way forward with Air Namibia. Procedurally, the item will now serve before the Cabinet Committee on Overall Policies and Priorities to consider and approve (or decline) the recommendations,” Public Enterprises minister Leon Jooste said.
The Namibian has reported that government has already started the process of negotiating Air Namibia’s exit from aircraft lease agreements, a move which could cost around N$2,5 billion.
The national airline has lease agreements for the A330s. They cost the airline around N$15 million per month. The contract expires only in 2025.
In the recently tabled by 2020/21 budget, government through the Ministry of Finance allocated N$984.6 million to Air Namibia.
Previously the airline has argued that leased equipment is not subject to attachment.
