17 July 2017

Namibia: Air Namibia Told to Find Own Resources for July

Photo: Simon Boddy
Ethiopian Airlines is one of the three top airlines in Africa. With Kenya Airways and South African Airways, it sold two-thirds of the estimated 9.2 million seats purchased for travel within sub-Saharan Africa in 2016.

Windhoek — The Ministry of Works and Transport has informed Air Namibia that central government would be unable to pay any subsidy to the company this month and urged the airline to secure its own funding for key monthly expenditures, such as the leasing of planes.

Works permanent secretary Willem Goeiemann wrote last week that this was due "very limited ceiling" (in terms of funds allocation) received from Treasury. A letter addressed to Air Namibia acting managing director Adv Mandi Samson confirmed government's decision.

"The ministry is unable to pay for your July government subsidy allocation. The ministry, therefore, advises Air Namibia to kindly make other financial provision to pay its lease, maintenance and fuel for July 2017," Goeiemann wrote.

He also asked the airline to provide the ministry with a table of government funding and disbursements for the financial year 2017/2018.

Contacted for comment yesterday, Air Namibia spokesperson Paul Nakawa acknowledged receipt of the letter regarding the subsidy. He said the airline was engaging the line ministry on the matter.

"The lack of subsidy from government can potentially affect the operations of the airline," he said.


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