Budget: Air Namibia black hole gobbles N$366m :: Namibia Internet Gateway cc ::

Budget: Air Namibia black hole gobbles N$366m

Posted by admin on Thursday, March 25, 2004 - 06:37 PM

GOVERNMENT plans to shell out N$366 million in the coming financial year to keep Air Namibia flying.
The additional spending on Air Namibia - which since 1999 has received N$1,050 million from Government to stave off bankruptcy - is set to bring public spending on the struggling national airline to some N$1,4 billion over a six-year period. Finance Minister Saara Kuugongelwa-Amadhila told the National Assembly yesterday that the additional N$366 million was needed to help Air Namibia meet its financial obligations and to support its "new business plan". In a Finance Ministry summary of stand-out aspects of this year's Budget, the allocation to the airline is described as meant "to promote tourism and business activities by supporting restructuring of Air Namibia". The airline would undergo "a comprehensive restructuring and realignment process" this year, the Minister told Parliament. "This will include the introduction of a more economical and better-configured aircraft, as well as a possible expansion of the international route network to include London," she said. "More importantly, an increase in the frequency of flights to Europe is envisaged." She said Air Namibia's management was pursuing options to sell or lease the airline's Boeing 747 aircraft. Money raised from disposing of the plane would be used to reduce Government's financial commitments to the company.

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