D-Day dawns for Boeing deal

AIR Namibia is set to take the final step today in the process of selling its most contentious liability, its flagship aircraft the Boeing 747-400 Combi.

Air Namibia’s Operations and Technical General Manager Andre Compion, accompanied by the company’s lawyer Phillip Ellis, is expected to sign the sales agreement in London today with an as yet unnamed airline believed to be based in the Middle East. Yesterday, Managing Director Gernot Riedel confirmed that the airline’s management was on the point of clinching a deal with a buyer it had already secured more than two months ago.”Everything is in place for finalising the agreement,” Riedel said yesterday.The move is in line with a Cabinet directive last year: that the airline rid itself of its most detrimental operational liability in an effort to escape the financial misfortune it has suffered since it bought the Welwitschia nearly five years ago.Details related to the release of the aircraft to its new owners remain sketchy, but Riedel said he expected that a final time frame for its hand-over would also be negotiated today.Riedel did, however, say that Air Namibia was working towards sending the aircraft for a final maintenance check around the middle of next month, so that it could be transferred to its new buyers by September 1.Initially Air Namibia had arranged to hand over the plane to its new owners last week, but arrangements to secure an interim replacement aircraft suitable to its sole shareholder, the Government, stalled the signing of the sales agreement.Amidst final discussions with Government on the Boeing’s sale two weeks ago, the airline was dealt a blow with the resignation of its board chairman, Vekuii Rukoro, after nearly four years.He claimed there was too much State House interference in the airline’s commercial decisions – in particular about ridding itself of the Boeing aircraft.With the sale of the Boeing, the airline could finally see itself break even and on the road to financial recovery with revenue from the sale reportedly amounting to as much as US$60 million.The airline’s debt – including the amount owed on the Boeing – is just over a billion dollars.Today’s signing would be the final step in week-long negotiations Compion has been handling abroad in order to facilitate the smooth hand-over of the plane.Air Namibia has in recent days secured an MD 11 aircraft with a capacity of nearly 300 from SwissAir to fly the Frankfurt route by the beginning of September in place of the Welwitschia.The national carrier has also entered into talks with Air France for the long-term leasing of an Airbus aircraft to operate the continental route on a permanent basis as from October – in line with its business plan.It is the airline’s intention to eventually lease two such aircraft so that it can re-introduce a direct flight to London later this year.Yesterday, Managing Director Gernot Riedel confirmed that the airline’s management was on the point of clinching a deal with a buyer it had already secured more than two months ago.”Everything is in place for finalising the agreement,” Riedel said yesterday.The move is in line with a Cabinet directive last year: that the airline rid itself of its most detrimental operational liability in an effort to escape the financial misfortune it has suffered since it bought the Welwitschia nearly five years ago.Details related to the release of the aircraft to its new owners remain sketchy, but Riedel said he expected that a final time frame for its hand-over would also be negotiated today.Riedel did, however, say that Air Namibia was working towards sending the aircraft for a final maintenance check around the middle of next month, so that it could be transferred to its new buyers by September 1.Initially Air Namibia had arranged to hand over the plane to its new owners last week, but arrangements to secure an interim replacement aircraft suitable to its sole shareholder, the Government, stalled the signing of the sales agreement.Amidst final discussions with Government on the Boeing’s sale two weeks ago, the airline was dealt a blow with the resignation of its board chairman, Vekuii Rukoro, after nearly four years.He claimed there was too much State House interference in the airline’s commercial decisions – in particular about ridding itself of the Boeing aircraft.With the sale of the Boeing, the airline could finally see itself break even and on the road to financial recovery with revenue from the sale reportedly amounting to as much as US$60 million.The airline’s debt – including the amount owed on the Boeing – is just over a billion dollars.Today’s signing would be the final step in week-long negotiations Compion has been handling abroad in order to facilitate the smooth hand-over of the plane.Air Namibia has in recent days secured an MD 11 aircraft with a capacity of nearly 300 from SwissAir to fly the Frankfurt route by the beginning of September in place of the Welwitschia.The national carrier has also entered into talks with Air France for the long-term leasing of an Airbus aircraft to operate the continental route on a permanent basis as from October – in line with its business plan.It is the airline’s intention to eventually lease two such aircraft so that it can re-introduce a direct flight to London later this year.