Govt, Air Namibia in firing line
The NCCI northern branch says it is wrong for government employees and officials to use other airlines and that they should be instructed to only use the national carrier.
The Namibia Chamber of Commerce and Industry (NCCI) northern branch has implored government to direct all civil servants and officials from public enterprises to use Air Namibia at all times.
NCCI northern branch chairperson Tomas Iindji said it is concerning that government offices, agencies and ministries were allowing their officials to make use of the services of other airlines instead of prioritising to fly Air Namibia.
“Government employees and officials are using some other airlines as opposed to using the services of our national asset; this is wrong,” said Iindji.
“In the framework of the Public Procurement Act, there should be a directive that all employees of government use Air Namibia as the first preferred choice whenever they are travelling.”
In a letter addressed to finance minister Calle Schlettwein, the NCCI said it was also saddened by media reports about a possible collapse of the national airline. Despite receiving financial lifelines from government to stay in business over years, Air Namibia is still struggling with growing losses and a troubled business model. The management has attributed the troubles at the national airline to insufficient cash flow, a lack of annual reporting and a lack of confidence by domestic banks and financial lenders. The NCCI believes the national airline has the potential to break even, if it is properly managed.
“It becomes difficult to demand for improved performance and complete accountability under normal circumstances, if the airline is operating without a substantive head of institution,” Iindji said. Mandi Samson remains the acting managing director of Air Namibia since 2015, when she took over from Rene Gsponer. The acting MD's contract is renewed every six months, which NCCI finds unacceptable.
“How do you expect the person and institution to perform under such circumstances? The sustainability of Air Namibia to remain a going concern needs to be addressed by not only the shareholders but also by key stakeholders like NCCI members, sister organisations such as Namibia Airports Company and individual travellers, as a matter of urgency,” Iindji said. The poor airport infrastructure in the country has also been criticised, with NCCI saying there is massive potential for air travel.
“The airline business requires expanded economies of scale. Let us as Namibia enable the airline to operate to its full potential by opening these airports.
KENYA KAMBOWE
NCCI northern branch chairperson Tomas Iindji said it is concerning that government offices, agencies and ministries were allowing their officials to make use of the services of other airlines instead of prioritising to fly Air Namibia.
“Government employees and officials are using some other airlines as opposed to using the services of our national asset; this is wrong,” said Iindji.
“In the framework of the Public Procurement Act, there should be a directive that all employees of government use Air Namibia as the first preferred choice whenever they are travelling.”
In a letter addressed to finance minister Calle Schlettwein, the NCCI said it was also saddened by media reports about a possible collapse of the national airline. Despite receiving financial lifelines from government to stay in business over years, Air Namibia is still struggling with growing losses and a troubled business model. The management has attributed the troubles at the national airline to insufficient cash flow, a lack of annual reporting and a lack of confidence by domestic banks and financial lenders. The NCCI believes the national airline has the potential to break even, if it is properly managed.
“It becomes difficult to demand for improved performance and complete accountability under normal circumstances, if the airline is operating without a substantive head of institution,” Iindji said. Mandi Samson remains the acting managing director of Air Namibia since 2015, when she took over from Rene Gsponer. The acting MD's contract is renewed every six months, which NCCI finds unacceptable.
“How do you expect the person and institution to perform under such circumstances? The sustainability of Air Namibia to remain a going concern needs to be addressed by not only the shareholders but also by key stakeholders like NCCI members, sister organisations such as Namibia Airports Company and individual travellers, as a matter of urgency,” Iindji said. The poor airport infrastructure in the country has also been criticised, with NCCI saying there is massive potential for air travel.
“The airline business requires expanded economies of scale. Let us as Namibia enable the airline to operate to its full potential by opening these airports.
KENYA KAMBOWE
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