Windhoek, Namibia. (News of The South) -The Namibian government has today agreed to provide cash strapped state owned Air Namibia with a partial bailout of NAD578 million (US$40.7 million).
Back in October, the airline asked the government for a cash injection of US$137 million which Finance minister Calle Schlettwein denied.
However, it seems as if the Namibian government has changed its mind, “we have agreed to provide a guarantee for them to raise NAD578 million (USD40.7 million).
This is basically a bridging facility until we discuss the matter in the Cabinet early next year. A full bailout will require much more than that,” said minister of Public Enterprises Leon Jooste.
Among the debts that have been accrued by the airline include an unpaid sum for an A330-200 undergoing maintenance at Malta Int’l totalling US$1.43 million.
The carrier additionally owes the Namibia Airports Company almost US$33.66 million in unpaid landing fees and taxes.
This latest development comes on the back of a lengthy dispute between Air Namibia and a wet-lease agreement dating back to 1998 with the now-defunct Belgian carrier Challengair.
Two of Air Namibia’s E135ERs and one of its three Airbus A319-100s are currently not flying.
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