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Namibia to shut loss-making nationwide provider | Information

Namibia to close loss-making national carrier | News

Air Namibia has turn out to be the most recent aviation casualty of the Covid-19 shutdown, with the provider grounded by the nationwide authorities.

Having spent upward of $500 million in recent times to the help the flag-carrier, officers stated losses had been now not sustainable at a time of financial disaster.

All flights have been cancelled with rapid impact, with ten plane grounded.

The 644 workers of the state-backed airline shall be made redundant, with every provided a severance bundle price one yr of their wage.

Air Namibia introduced on its social media platforms that prospects who’ve paid for flights ought to register for refunds.

The choice to shut the airline was taken after cautious consideration, in line with the minister of public enterprises, Leon Jooste.

“The nationwide airline will not be worthwhile, and it has not been worthwhile since its inception.

“The online financial prices of Air Namibia’s operations far outstrip the online features, and it’s thus unsustainable,” Jooste stated final week.

He added: “At this stage, the nation’s economic system can now not afford to perpetually present monetary help to Air Namibia on the expense of supporting financial development and demanding social companies.

“Authorities thought of all different choices which included engagement with different airways for potential funding partnership and varied enterprise plans to turnaround the corporate.”

The price of liquidating Air Namibia is estimated to be $137 million, in line with native press reviews.



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