Boeing ‘breakthrough’

GOVERNMENT yesterday announced what it described as a “breakthrough” on the sale of Air Namibia’s Boeing 747-400 Combi.

It said it has now accepted an offer the national air carrier had received for the plane. However, Government officials remained vague on the timeframe for finalising the deal, which Air Namibia officials have previously said was important.Government is Air Namibia’s sole shareholder.The announcement follows the sudden resignation of Vekuii Rukoro, the airline’s former board chairman, who on Wednesday criticised Government for hampering management’s decision to clinch the deal several weeks ago.The Jumbo was scheduled to leave Air Namibia’s fleet at the end of last month already, following a memorandum of understanding signed with the undisclosed buyer in May.Rukoro alleged that State House had interfered in the board’s decision to instruct the airline’s management to seal the deal.At a press conference in Windhoek yesterday, Finance Permanent Secretary Calle Schlettwein told the media that following two weeks of “intense negotiations”, a “breakthrough” on selling one of the airline’s most costly assets was achieved on Wednesday night.”We can now confirm that the said disposal of the aircraft can commence and that the related negotiations have reached the final stage,” said Schlettwein.Schlettwein said Government discussions with several parties were in the interest of ensuring that, by accepting the deal, the services it rendered to its customers would not be compromised.”The disposal of the aircraft did not happen at a time acceptable to all parties.The negotiations are now in their final stages which is dependent on a number of issues,” he said, but declined to elaborate.Schlettwein and the board also did not want to be drawn into how much time the buyers had given for finalising the transaction, other than to say that much hinged on making interim arrangements.It has been decided to lease an MD 11 aircraft to operate the Windhoek-Frankfurt route.”At the earliest possible time an aircraft becomes available at acceptable terms we will take it,” said Schlettwein.The board did however allude that this could happen as soon as next week.Last month Air Namibia’s management announced that July 21 was the date it was working towards to deliver the Welwitschia to its new owners.The deal is said to be more lucrative than the airline could have hoped for, with the buyers said to be offering as much as US$60 million (N$366 million) for the plane.Air Namibia leased an MD 11 aircraft from World Airways for about a week last month, while the Boeing underwent maintenance in the Netherlands in preparation for its sale.Depending on its configuration, the MD 11 it can carry up to 300 passengers, and has a cargo capacity of about 11 tonnes.Schlettwein said Government had been assured that the aircraft was of the same quality and standard as the Welwitschia and could thus guarantee uninterrupted secure services.Air Namibia is only expected to begin leasing an Airbus aircraft to operate this route on a long term basis in accordance with its turnaround strategy in about three months’ time.Government yesterday also announced that NamPower MD Dr Leake Hangala would act as Board Chairman until a permanent appointment had been made.The only other directors are Namdeb MD Inge Zaamwani and Air Namibia MD Gernot Riedel.The Namibian understands that before Rukoro’s resignation the board had informed the Finance Minister of its decision on the permanent appointments of the airline’s two top positions: that of Managing Director and General Manager of Operations.The posts, which are currently held by Riedel and Andre Compion respectively, were advertised three months ago as the pair have been acting in the posts for nearly three years ago.But Hangala declined to divulge the board’s decision yesterday saying die saak geniet aandag [the matter is enjoying attention].”He said at this time the airline’s major concern was stabilising its operations and that all its energies were being focussed on this.However, Government officials remained vague on the timeframe for finalising the deal, which Air Namibia officials have previously said was important.Government is Air Namibia’s sole shareholder.The announcement follows the sudden resignation of Vekuii Rukoro, the airline’s former board chairman, who on Wednesday criticised Government for hampering management’s decision to clinch the deal several weeks ago.The Jumbo was scheduled to leave Air Namibia’s fleet at the end of last month already, following a memorandum of understanding signed with the undisclosed buyer in May.Rukoro alleged that State House had interfered in the board’s decision to instruct the airline’s management to seal the deal.At a press conference in Windhoek yesterday, Finance Permanent Secretary Calle Schlettwein told the media that following two weeks of “intense negotiations”, a “breakthrough” on selling one of the airline’s most costly assets was achieved on Wednesday night.”We can now confirm that the said disposal of the aircraft can commence and that the related negotiations have reached the final stage,” said Schlettwein.Schlettwein said Government discussions with several parties were in the interest of ensuring that, by accepting the deal, the services it rendered to its customers would not be compromised.”The disposal of the aircraft did not happen at a time acceptable to all parties.The negotiations are now in their final stages which is dependent on a number of issues,” he said, but declined to elaborate.Schlettwein and the board also did not want to be drawn into how much time the buyers had given for finalising the transaction, other than to say that much hinged on making interim arrangements.It has been decided to lease an MD 11 aircraft to operate the Windhoek-Frankfurt route.”At the earliest possible time an aircraft becomes available at acceptable terms we will take it,” said Schlettwein.The board did however allude that this could happen as soon as next week.Last month Air Namibia’s management announced that July 21 was the date it was working towards to deliver the Welwitschia to its new owners.The deal is said to be more lucrative than the airline could have hoped for, with the buyers said to be offering as much as US$60 million (N$366 million) for the plane.Air Namibia leased an MD 11 aircraft from World Airways for about a week last month, while the Boeing underwent maintenance in the Netherlands in preparation for its sale.Depending on its configuration, the MD 11 it can carry up to 300 passengers, and has a cargo capacity of about 11 tonnes.Schlettwein said Government had been assured that the aircraft was of the same quality and standard as the Welwitschia and could thus guarantee uninterrupted secure services.Air Namibia is only expected to begin leasing an Airbus aircraft to operate this route on a long term basis in accordance with its turnaround strategy in about three months’ time.Government yesterday also announced that NamPower MD Dr Leake Hangala would act as Board Chairman until a permanent appointment had been made.The only other directors are Namdeb MD Inge Zaamwani and Air Namibia MD Gernot Riedel.The Namibian understands that before Rukoro’s resignation the board had informed the Finance Minister of its decision on the permanent appointments of the airline’s two top positions: that of Managing Director and General Manager of Operations.The posts, which are currently held by Riedel and Andre Compion respectively, were advertised three months ago as the pair have been acting in the posts for nearly three years ago.But Hangala declined to divulge the board’s decision yesterday saying die saak geniet aandag [the matter is enjoying attention].”He said at this time the airline’s major concern was stabilising its operations and that all its energies were being focussed on this.