Air Namibia Ending Operations

Namibia’s national carrier announced it was ending operations after the Southern African country’s government approved the loss-making airline’s liquidation. Air Namibia had failed in its multiple recovery attempts despite several years of state bailouts. Over 600 workers are set to lose their jobs. Namibia’s government said affected staff would get full compensation. Namibia’s ministry of public enterprises, the ministry of finance, Air Namibia’s executive committee members, and unions were expected to meet for the government to give its stance on the liquidation process. Its hub at Windhoek’s Hosea Kutako International Airport, the airline operated flights to neighboring South Africa, Zimbabwe, Angola, Zambia, and Botswana.

With a very small fleet and high operating costs, the airline struggled to make a profit. In October 2019, the airline’s $119 million bailout appeal was turned down but after talks, the government underwrote a $34 million loan to keep the firm afloat. The 75-year-old airline has received a total of $477 million from the state between 1999 and 2019. The company’s precarious financial situation was worsened by the coronavirus pandemic, which saw the airline halt operations for months. At the beginning of February, the airline’s board resigned after accusing the state of interference. Already struggling pre-Covid, will likely fail to shake off the effects of the pandemic and will need heavy cash injections to stay in the air.

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