Air Namibia is officially ending all its operations from Thursday, February 11 effective immediately. The country’s government is posed to announce a voluntary liquidation for the airline.
The airline, which is 75-years-old, announced late on Wednesday [February 10] that all flight operations will be cancelled, with all aircraft returning to base effective immediately from Thursday, February 11.
The reservation system for taking new bookings is also suspended.
Affected passengers should register their claims for refund to [email protected] or [email protected]
— AirNamibia -carrying the spirit of Namibia (@airnamibia1) February 10, 2021
According to Finance Minister Ipumbu Shiimi, Air Namibia has been operating at a loss since its inception because of a flawed business model that rendered 15 of its 19 routes unprofitable.
This decision comes after the airline’s board resigned on February 3, and the government did not oppose an application in the Namibian High Court to have the airline liquidated. Lawyers settled out of court and agreed on a payment of EUR9.9 million (R178.6m), the first installment of which is due on February 18.
Speaking to ch-aviation, a spokesperson from the airline Twaku Kayofa said that government will make an announcement in time to explain the reason behind this decision.
Liquidation is on the cards, and the government, executives from the airline and unions are expected to meet on Thursday to discuss finer details of the process.
Kayofa also confirmed that the company’s 636 employees will receive an ex gratia pay-out equal to 12 months of salary, but with no benefits.