Cash-strapped Air Namibia cancels all flights
Cash-strapped Namibian airline Air Namibia suspended all flights from Thursday after the government decided to file for voluntary liquidation.
The South African nation’s carrier has failed to turn the tide despite years of state bailouts.
“All flight operations will be canceled with all aircraft returning to base,” Air Namibia said on social media.
Lawyers for Air Namibia and the Belgian company Challenge Air SA have reached an agreement for the liquidation of the carrier.
The national carrier’s board of directors resigned on February 3.
A settlement agreement was reached in December 2019, in which Air Namibia acknowledged owing Challenge Air more than N$330 million ($22.16 million) and agreed to pay the sum in monthly instalments.
Namibia is expected to announce a voluntary liquidation on Thursday, which is expected to leave more than 600 staff unemployed.
Finance Minister Iipumbu Shiimi said around N$8.4 billion had been spent to bail out the airline over the past 10 years.