Air Nam settles with Challenge Air
20 December 2019 | Business
The airline said in accordance with the settlement agreement, all attachment orders of Air Namibia's assets in line with a German court directive were suspended, which would allow it to trade normally.
Air Namibia spokesperson Paul Nakawa said the settlement was the outcome of consultations with all parties and has been duly executed by both Air Namibia and Challenge Air.
“Given the fact that the terms of the agreement are confidential, Air Namibia is not in a position to divulge what the exact terms, or basis, of the terms are,” Nakawa said.
Challenge Air got involved in a dispute with Air Namibia over the leasing and maintenance of a Boeing 767-33 AER aircraft in 2005.
Challenge Air obtained a German court order in 2008, under which Air Namibia had to pay it US$6.5 million in respect of unpaid maintenance, rent and insurance of the aircraft.
Air Namibia was also ordered to pay Challenge Air US$13 million in interest on late and non-payment of maintenance, rent and insurance in July 2011.
Air Namibia countered the court ruling as a “foreign” award.