Namibia’s State carrier, Air Namibia, is facing possible liquidation after a streak of losses and government bailouts. In the past two decades, the Namibian Government has given the carrier about $ 485 million in bailouts.
“We have a serious problem and we must liquidate Air Namibia. It is not making any profits, and it is just being bailed out. We must restructure it,” Bloomberg quotes President Hage Geingob.
The President also suggested alternative measures like restructures, rejecting proposals to cut routes.
However, unions in the country are strongly opposed to liquidation. They believe that the state should investigate poor management practices in the airline before liquidations.
“The airline, for the past years, has failed to account for money allocated to it by not producing audited financial reports as requested by the act. Therefore, we firmly ask for a probe into the airline’s management before the liquidation, ” Namibian quotes Ndapewa Amupanda, Chairperson of the Shop Stewards Committee.
Air Namibia is among other African airlines seeking rescue from governments. Last week, The Government of Mauritius gave its Air Mauritius $225 million to rescue the business.
Globally, the airline industry is ailing from the effects of the pandemic. Recently, the German, Austrian and French Governments bailed out Lufthansa, Austrian Airlines, and Air France-KLM. Further, LATAM airlines filed for bankruptcy.
IATA expects airlines globally to lose up to $84 billion due to the pandemic.
SEE ALSO: Lufthansa to Get a $10.8 Billion Bailout from Germany