Air Namibia Is On Course
YOUR paper and almost all print media recently carried extensive reports on Air Namibia’s operational and managerial processes, blaming management without exception. Some papers failed the thin line of journalistic professionalism and ethics by name calling and making far-reaching unsubstantiated accusations which should be corrected.
While I appreciate the fact that we remain concerned as citizens about the amount of money injected by state treasury into Air Namibia, we cannot dispute the fact that this scenario is not isolated to Air Namibia alone. Just to the south of us South African Airways was rescued early last year to the tune of R15 billion by its shareholder and more recently with an additional R700 000 million to cover its fuel and operational bill. It is true that we are a small economy and cannot be compared to SA at all but then the industry cost does not differentiate between small economy or big economy. Operational costs remain the same for all regardless the size of the country. It becomes even more pronounced if such a small country cannot have economies of scale due to lack of infrastructure in the form of numbers of planes to cross subsidise its operations.
What is concerning is that the representatives of the sole shareholder who happen to be the Namibian government and ultimately Namibians, play into the hands of the media and competitors by making destructive and counter productive public statements either knowingly or unknowingly. I cannot believe an appointed official representing the government going out and making the kind of statements that both the Minister of Works and Transport, Erkki Nghimtina, and his permanent secretary made with regard to their own company, Air Namibia. That would never ever happen in the private sector. In the private sector all role players would form a block and remain firm and solid until such time they were liquidated and/or put under administration.
Many of the journalists and owners of print media who are now pronouncing themselves, wined and dined the former Prowealth owner who literally stole money of hard-working Namibians without even dropping a hint until the very last minute when all was lost. Yet, they are now riding the moral high horse denouncing and name calling the Namibian government for supporting state-owned companies, especially Air Namibia. It is only in Namibia that we have this outcry when cash is injected into struggling state owned entities yet you will never hear single outcry from Germans and/or SA citizens when the German government rescues Lufthansa or SA Government the SAA.
Ignoring that laws must change to alter the existence of state-owned companies is tantamount to economic and political sabotage as the risk of exposure both reputational, financial and otherwise would have far-reaching consequences and liabilities to the state of Namibia. Imagine Air Namibia not servicing their planes on regular frequencies as required due to shortage of funds - risks that to us will be huge and far greater than you think. Imagine planes running out of fuel midair due to non-funding.
Simple and unconsidered statements that are made effectively drive commuters away from your own company towards your competitors. We all want to see ours do better but we cannot help by continued negative statements and pronouncements in the media. Any company works towards a well geared balance sheet. With the acquisition of two planes that model will be achieved and the hiring fee that was paid previously could be used toward operations. Currently, I understand that Air Namibia will be able to show a good balance sheet. They will have free assets to be used in generating income thus saving charter fees that were payable previously and use those savings to cover their costs. These are all new approaches that need to be given time and tested over period of time. Support the good name of Namibia and stop sabotaging the good efforts. The creation of Air Namibia is a done deal. So is the purchase of the two new planes. Quite clearly all the funds deployed on Air Namibia over past two years, contrary to the belief by some, were not at loss. From what I gather, these two planes where acquired and fully paid for with funds deployed over past two years. That speak volumes and I can only encourage the current Air Namibia management under its shareholder Minister to stay focussed and concentrate on strengthening cost control and financial discipline to ultimately turn the airline around and/or minimise pressure on the treasury within next two years or so.
Martin Karel
Windhoek
* In fairness to other readers, your letter contains information that is not factual: The world is awash with examples of shareholders criticising their companies publicly and not only after closure; more than in Namibia, in many countries, and especially in Germany and South Africa, taxpayers are extraordinarily vocal about wanton misuse of state funds. - Ed