Air Namibia’s Liquidation: Was It Really Logical?

Surely the people entrusted to carry out the studies on the possible outcomes of the liquidation foresaw that there would be a ripple effect?

Disrupting the national airline was not only going to stop there. The aviation industry in which Air Namibia operated was connected to various industries.

In short, the national airline was key to a chain that provided an important economic stimulus.

The chain needed to be fixed, if not strengthened, and not broken because, in the end, structures supported by this chain crumbled.

I generally don’t use statistics to make my case but to help bolster my argument.

In this respect, I will refer to an article published by Oxford Economics in November 2016 titled ‘Air Namibia’s Economic Impact’.

Read if you can.

According to the article, at that time (2015/16), Air Namibia contributed more than N$700 million to the country’s GDP and sustained over 4 500 jobs countrywide.

The projection for 2020/21 was that the national airline was set to contribute approximately N$1,7 billion to the GDP and sustain an estimated 7 700 jobs.

Of course, the onset of Covid-19 and the early closure of the airline means we will never find out how accurate these predictions would have been.

Nonetheless, of those job sustenance figures, less than 10% were directly created by the national airline.

This means more than 90% of the jobs were spread across various industries and businesses Air Namibia contributed to, or was linked to, when operational.

In addition, the airline’s tax revenue contribution was stated to be equivalent to 55% of the annual government subsidy given to the airline in 2015/16.

This was forecast to be more than N$440 million for 2020/21.

These statistics alone appear to build a strong argument that despite the airline not making a profit, it had a not insignificant economic impact on our country.

That revenue is now gone. Immediately after the liquidation of Air Namibia, various entities had to let go of employees.

Others had to shut down or downsize, and some are still going through the process of retrenching employees and winding up their businesses.

Of course, those involved in the Air Namibia decision will blame Covid-19, and the airline’s inability to make a profit. But please, have the balls to own your lack of accountability and your questionable decisions.

I thought it was incumbent on a government to help boost job creation, increase revenue generation through various industries, and promote economic independence among its citizens.

Our unemployment rate was more than 20% in 2020. In 2021, it was over 36%. Of course, the number is rising fast.

As if Covid-19 was not hitting the economy hard enough, our government had to ‘spice up’ the dilemma with its questionable decisions.

If we keep on at this rate, we will soon hit an unemployment rate of 50%.

Our country’s so called bosses have to suck up their pride and do their jobs. Politicians in democratic nations need to be reminded that they are public servants. They need to own accountability and good governance.

Despite its problems, Air Namibia painted the skies with our national colours.

The government should have owned up to their lack of oversight and reduced their interference in the airline’s operational matters in order to find a workable solution beneficial to all of Namibia.

Shame on those who voted for the liquidation of Air Namibia and shame on their lack of leadership and lack of good governance.

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