Air Namibia business model in spotlight
11 June 2019 | Transport
The embattled Air Namibia has appointed consultants to come up with a more suitable business model that would allow it to break even in the next three years. The announcement was made by public enterprises minister Leon Jooste at a media briefing today. According to Jooste, the consultants completed their first part of the assignment and the matter is now in the hands of the Cabinet Committee on Treasury. “This report has given us a more accurate picture of the various realities surrounding Air Namibia and what may be required to restore the commercial viability of our airline,” Jooste said. “During recent deliberations at the Cabinet Committee on Treasury, the Air Namibia cashflow and associated challenges were discussed. This finally culminated in a meeting of the Cabinet Committee on Overall Policy and Priorities that was held on Wednesday, 5 June 2019. The purpose of the meeting was to discuss the feasibility of Air Namibia and the way forward.” Air Namibia has been hogging the headlines for all the wrong reasons in recent days. Only one of Air Namibia’s four Airbus A319 aircraft is operational at the moment, with the remaining three having been seized in South Africa and Cyprus because of unpaid debts. As a result, the national airline cannot keep up its regional flight schedule. As from 3 June, Air Namibia has suspended all flights between Windhoek and Luanda and reduced the number of daily flights to Johannesburg and Cape Town.
STAFF REPORTER
STAFF REPORTER
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