The implementation of Air Namibia’s new business plan would require a financial commitment of over N$7 billion during the current financial year, thus making it both unaffordable and unsustainable.
This is according to finance minister and chairperson of the Cabinet Committee on Treasury (CCT), Iipumbu Shiimi, who yesterday confirmed that consultations are still ongoing on how to rescue or resuscitate the ailing national airline.
In a statement, Shiimi assured stakeholders and staff of the airline that once these consultations are concluded a final decision would be taken.
Shiimi emphasised that there is no way government can even think about spending billions on Air Namibia while areas such as health, education, housing and sanitation have to be prioritised during these difficult times of negative economic growth exacerbated by the Covid-19 pandemic.
“CCT fully recognises the importance of having a national airline and therefore, it is looking at ways of finding a sustainable and affordable model for the national airline. CCT has consulted the board of Air Namibia and trade union representatives of the staff of Air Namibia with a view to solicit their input on restructuring Air Namibia,” read the statement.
The statement continued that no decision has been taken to liquidate Air Namibia but that the CCT is assessing different options to restructure the airline.
The ministry confirmed that Air Namibia has a significant amount of debt, which, if leaseholds are included, will amount to over N$5 billion.
Shiimi also assured Air Namibia staff and the public that only options in the best interest of staff and financial sustainability of Air Namibia as well as future generation will be considered.
2020-07-03 11:15:44 | 4 months ago