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Reading: Opposition warns new Namibia Air is ‘gamble’ risking taxpayer funds
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Market Analysis

Opposition warns new Namibia Air is ‘gamble’ risking taxpayer funds

Last updated: November 16, 2025 3:40 pm
Published: 3 months ago
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Opposition parties have raised concerns over the government’s plan to revive the national airline, warning that Namibians could bear the cost of another failed venture if lessons from Air Namibia’s collapse are ignored.

The Popular Democratic Movement (PDM) scathingly refers to “an ego airline”, while the Affirmative Repositioning (AR) cautions against the mismanagement and interference that sank the last venture.

Despite opposition warnings, works and transport minister Veikko Nekundi confirms the government’s plans to establish a new national airline under the name Namibia Air Pty Limited, a fully state-owned entity registered in Namibia.

An interim board of seven members and three attendants has already been appointed, and market analysis, traffic forecasting and business model formulation are ongoing.

“The Ministry of Works and Transport has received Cabinet approval for the airline name,” the minister told Desert FM yesterday. “Everything is being done in accordance with company law. We are following a seven-phase approach covering approximately 65 tasks.”

The minister has confirmed that Namibia Air is expected to begin operations in the next financial year, noting the competitiveness of the African aviation market. He said that the airline would operate with a lean labour force based on skills and expertise rather than prior employment, to avoid overstaffing, which was one of Air Namibia’s major challenges.

On aircraft acquisition, Nekundi says leasing versus purchasing will be decided after careful economic and commercial analysis.

“One of the failures that contributed to Air Namibia’s challenges was expensive leasing arrangements. We will ensure all decisions are commercially viable and sustainable,” he says.Nekundi adds that the airline will enhance regional connectivity and support intra-African trade under the African Continental Free Trade Area agreement, using fifth freedom rights to facilitate passenger and cargo movement along key corridors. Partnerships with other airlines may also be explored to expand operations beyond Africa.

Public investment, Nekundi says, will be balanced with commercial viability to ensure taxpayer funds are prudently used while contributing to the gross domestic product, tourism and employment.

Namibia Air represents the government’s strategic effort to re-enter the aviation sector. However, opposition voices warn that without clear economic justification, proper oversight and accountability, the airline could repeat Air Namibia’s costly mistakes.

PDM leader McHenry Venaani says the government is risking public resources with what he calls “an ego airline”. He questions the economic fundamentals behind the plan, pointing to the country’s geographical limitations and the repeated failures of past turnaround strategies.”The government must not gamble with the precious resources of Namibians,” he says. “I was the only one challenging the liquidation of Air Namibia, asking whether the procedures were correct and if due diligence was done. Today, they have syphoned millions of dollars and are telling us to start a new airline. What economic fundamentals have changed? How many turnaround strategies have we listened to for Air Namibia? None of them worked,” Venaani adds”Namibians are going to suffer again.”AR member of parliament George Kambala says Air Namibia’s failure was not caused by the idea of a national airline, but by mismanagement, political interference, inflated contracts and a lack of vision. He stresses that any revival must focus on efficiency, professionalism and transparency, rather than political prestige.”Yes, reviving the airline is economically feasible, but only if it is done differently this time. Namibia’s location offers a natural advantage as a regional air bridge, but the public must ask whether lessons have been learned. Before reviving planes, let us first revive accountability,” Kambala says.

Air Namibia, established in 1947 as South West Air Transport, was fully nationalised in 1986. The airline expanded operations across southern Africa and Europe, but by the 2000s it faced mounting financial difficulties due to high operating costs, overstaffing and poor management. Attempts to revive the airline through multiple turnaround strategies failed, and allegations of political interference and misallocation of funds compounded the challenges.

In February 2021, the government announced the liquidation of Air Namibia, citing unsustainable losses exceeding N$10 billion over the previous decade.

The closure resulted in job losses for hundreds of employees and ended Namibia’s direct national air connectivity.

Read more on The Namibian

This news is powered by The Namibian The Namibian

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