Help With A Dilemma

An Open Letter to the Minister of Finance: Air Namibia DEAR Minister, I would just like to help the Government with its never-ending dilemma concerning Air Namibia.

I have noticed that Air Namibia is quite inefficient and has been making losses for the last 15 years. I believe it is time for you as Minister to take decisive action to rectify the situation.I do not claim to know exactly what is wrong with Air Namibia but I know the Government cannot keep bailing out the airline.It is time that the airline was privatised.Sell it off to the highest bidder.I would recommend that Government still maintain a 49% shareholding but the controlling stake must be sold off to a reputable international airline, for instance Virgin Airlines or Emirate Airlines.Unfortunately Air Namibia can never become profitable because it is too small and cannot attain the economies of scale required for an airline in today’s competitive industry.Even the United States and Britain do not own their airlines – why should Namibia? It should not be about pride.Air Namibia cannot compete with giants such as South African Airways or Lufthansa.The only choice is to sell it off.After selling it off they could issue more Namibian airline licences so that the now-privatised Air Namibia has competitors; also companies with Namibian shareholding.This will result in lower airfares and greater efficiency in the Namibian aviation industry.Once Air Namibia is profitable, the Government can look forward to generating tax revenues from Air Namibia instead of the current losses.The N$1.5 billion dollars that has been put into Air Namibia over the last five years has actually been wasted – it is as though Air Namibia has really been burning money in flight.This money could have built 37 large schools at a cost of N$40 million each.And yet Namibia faces a chronic school shortage.Please, Madam Minister, take action to save our country’s money and channel it into education.Namibia needs schools.Very few have been built in Windhoek in the last five years.I and the Namibian public hope to see the good steps you take in the coming year.Anon Via e-mailI believe it is time for you as Minister to take decisive action to rectify the situation.I do not claim to know exactly what is wrong with Air Namibia but I know the Government cannot keep bailing out the airline.It is time that the airline was privatised.Sell it off to the highest bidder.I would recommend that Government still maintain a 49% shareholding but the controlling stake must be sold off to a reputable international airline, for instance Virgin Airlines or Emirate Airlines.Unfortunately Air Namibia can never become profitable because it is too small and cannot attain the economies of scale required for an airline in today’s competitive industry.Even the United States and Britain do not own their airlines – why should Namibia? It should not be about pride.Air Namibia cannot compete with giants such as South African Airways or Lufthansa.The only choice is to sell it off.After selling it off they could issue more Namibian airline licences so that the now-privatised Air Namibia has competitors; also companies with Namibian shareholding.This will result in lower airfares and greater efficiency in the Namibian aviation industry.Once Air Namibia is profitable, the Government can look forward to generating tax revenues from Air Namibia instead of the current losses.The N$1.5 billion dollars that has been put into Air Namibia over the last five years has actually been wasted – it is as though Air Namibia has really been burning money in flight.This money could have built 37 large schools at a cost of N$40 million each.And yet Namibia faces a chronic school shortage.Please, Madam Minister, take action to save our country’s money and channel it into education.Namibia needs schools.Very few have been built in Windhoek in the last five years.I and the Namibian public hope to see the good steps you take in the coming year.Anon Via e-mail