The Corona crisis has finally subdued Namibia’s national airline, after more than $ 500 million was invested in the company by the government in recent years in an attempt to save it from bankruptcy.
Air Namibia (Air Namibia), the national airline of Namibia, based at Hussia Kotko Airport in Windhoek, ceased operations yesterday (Monday) due to its difficult financial situation. All flights were canceled immediately and the ten aircraft were grounded (four Airbus A319-100 aircraft, two Airbus A340-300 aircraft and four Embraer ERJ-135 aircraft). 644 employees of the company will be fired, with each of them being offered a package of dismissals worth one year of their salary.
The airline was wholly government-owned and was a union of African airlines. The company was founded in 1978 and in 1988 was nationalized following its financial obligations. Namibian government officials said more than $ 500 million had been invested in the company in recent years. The cost of liquidation is estimated at $ 137 million.
“At this stage, the country’s economy can no longer afford to provide financial support to Air Namibia at the expense of supporting economic growth and critical social services,” the Namibian government said.An abbreviated address for this article: https://www.ias.co.il?p=114282
Source: IAS by www.ias.co.il.
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