The Namibia Civil Aviation Authority (NCAA) in its 2020/2021 annual report states that revenue from the aviation industry remained minimal with overall revenue recorded during the period ended March 2021 down by 83% compared to the previous year.
According to the report presented yesterday to the transport minister John Mutorwa, the novel Coronavirus (Covid-19) pandemic continued affecting the aviation industry causing the authority to incur an accounting loss of N$101 million for the year ended 31 March 2021. This was partially offset by a N$74 million government financial support.
The operating expenditures for the authority were reduced by 33% when compared to the previous year due to the cost control measures implemented because of Covid-19.
The report adds: “The statement of financial position showed a growth in gross assets of 94% from N$296 million to N$575 million, mainly due to the transfer of assets worth N$292 million from government to the NCAA. There were no changes to the (NCAA) fees and charges during the year ended March 2021”.
Presenting the report, NCAA’s interim executive director Ericsson Nengola said the pandemic resulted in a decline in global passenger traffic volumes at airports of 28.4% for the first quarter of 2020, equivalent to a reduction of 612 million passengers. In highlighting future challenges, Nengola said the revision of the charges system requires ongoing consultations as it will be crucial to place the NCAA on course to recoup significant past losses from a pandemic induced revenue dive and the unfortunate demise of Air Namibia.
Government established the NCAA as a regulator and air navigation services entity playing a strategic role in further enhancing the integrated development of the country’s economic potential.
Meanwhile, Mutorwa applauded the NCAA board for what he called “visible and positive changes” that were and are being brought about in improving the human-to-human relationships in the working environment and by providing ethical and professional leadership.