Dear Readers, I’M sure you are perplexed by the title of this letter.
I assure you the minister tasked with reviewing all means necessary to revive the airline would understand it, as he was handed a N$10-million cheque to support this endeavour.
Political analysts and leaders in various industries have had their say, so it’s only fair that a mere civilian like myself has a word too.
Scientific findings usually depend on pros and cons, and the business world depends on profit and loss margins to make sound judgements.
I strongly believe the Air Namibia case depends on both. A national airline is the pride and joy of every country, and Ethiopian Airlines is testament to this.
The success of airlines rest on three pillars: diversification, brand value and investment.
Air Namibia’s resuscitation depends on the following dos and don’ts:
THE DOS
Retain all former employees to save on training costs, but replace all executive and board members with efficient, experienced and qualified individuals whose performance is measured and scrutinised.
Diversify Air Namibia to include hotel chains, a manufacturing arm to support the airline, and Air Namibia’s own aviation institute.
Introduce the Air Namibia brand though products manufactured by the airline (such as lotion, hand sanitiser, towels and travel bags), while associating quality with the spirit of Air Namibia.
Leasing is a much cheaper approach, but I would prefer a higher deposit and buying the planes on loan, knowing they are Air Namibia assets at the end of the day.
The government should wholly own the airline and invest massively, but after operation kicks in, investment into the airline should match the profit generated.
THE DONTS
Repeating and recycling the same approach and people hoping for different results would prove futile. The people entrusted with running the new airline should be vetted by the public.
External loans outside Namibia should be avoided as they are prone to currency changes and ballooned interest payments – rather focus on local lending entities.
Do not overprice tickets. Air Namibia should take notes from Chinese companies like Xiaomi, of which the approach was selling their products at unbeatable prices while maintaining quality and standards.
This helped penetrate untapped markets full of customers looking for an affordable product of high quality.
In conclusion, I would like the relevant minister to consider public contributions to the future of an airline that has to undergo a turnaround or restructuring.
Unfortunately, not all details could be tabled or written as that would mean a full business plan.
Kambiru Lottie
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