WINDHOEK – Air Namibia says that during the recent weeks, it has been in direct engagement with Challenge Air, a now defunct company that is demanding N$400 million from the national carrier. Air Namibia says the direct contact is through a legally appointed and recognised European receiver who is court appointed liquidator responsible for the company’s creditors in the event of it being wound up to determine viable options to resolve the situation as rapidly and effectively as possible. 
According to a recent statement by Air Namibia the Namibian courts have not officially recognised any local liquidator for Challenge Air and the question as to the validity of the arbitral award remains sub-judice in Namibia. 

“Therefore, Air Namibia will not acknowledge, engage or negotiate with any Namibian individuals or companies purporting to be official representatives of Challenge Air in Namibia. It is unfortunate that certain individuals have chosen (a) to create incorrect perceptions about the facts in this matter, thereby attempting to unduly influence Air Namibia for their personal gain, and (b) to engage underhandedly to pre-empt the outcome before the Namibian High Court has pronounced itself on the matter,” read statement sent out by Air Namibia’s Board of Directors on Friday. 

 “We remain committed to finalising the matter swiftly and will provide a further update for the benefit of all our loyal stakeholders once the Namibian High Court has ruled on the matter,” read the statement. 

The legal battle between Air Namibia and Challenge Air stems from a March 1998 a written sublease agreement through which Air Namibia leased a plane from the Belgian company. A maintenance and crew support agreement was thereafter concluded at the end of March 1998. 

According to Air Namibia, it subsequently discovered that the aircraft leased was in many respects defective and Challenge Air, the lessor and current claimant against Air Namibia, was unable to rectify the defects.  
In 2015 Air Namibia was informed that Challenge Air has applied for an attachment order against an agency called Aviareps in respect of funds held by it on behalf of Air Namibia. 

Air Namibia is seized with legal proceedings in the Namibian High Court by the claimant seeking to have recognition of it awarded in Namibia and which is opposed amongst others on the basis of the pre-existing Namibian High Court Order declaring the award unenforceable.