AIR NAMIBIA FILES FOR VOLUNTARY LIQUIDATION

Debt-laden, state-owned Air Namibia has launched a voluntary liquidation process, Namibian Finance Minister Iipumbu Shiimi said. At a press conference with reporters, Shiimi said that filing a liquidation petition was the best decision, made in the interests of the country.

The government said it considered all possible options, including potential investments from other airlines and recovery strategies, before a liquidation decision was made.

“The country's economy can no longer afford to support Air Namibia,” Shiimi said during a news conference.

The Namibian government has invested huge amounts of public funds in the development of the airline. Currently, Air Namibia needs additional funding of 7 billion NAD (US $ 481.43 million) for another financial restructuring.

The airline faced financial difficulties many years ago due to growing debts that could no longer be serviced.

However, the crisis in the company came at the beginning of the Covid-19 pandemic. Due to declining demand for flights and inability to maintain proper flight schedules during the pandemic, Air Namibia was unable to generate the required revenue to cover its operating costs.

At the moment, all flights of the airline have been canceled. The government said it would pay 644 Air Namibia employees an annual salary over the next 12 months.