Malima backs AirNam bailout

MINISTER of Environment and Tourism, Philemon Malima, has come out in support of the N$366 million Government bailout for Air Namibia proposed in the 2004-05 Budget.

Speaking on the 2004-05 Appropriation Bill in the National Assembly yesterday, Malima said the national air carrier had done a lot to boost tourism in the country over the past year. The Minister said it had to be noted that the tourism sector contributed an estimated N$2,8 billion to Namibia’s Gross Domestic Product last year.This, he said, could not have been achieved without Air Namibia’s contribution.”While I am in agreement that serious mistakes were made in the past with regards to Air Namibia’s management, this new allocation is intended to enable the carrier to partly resolve those mistakes and increase it’s contribution towards tourism and general business growth and development,” Malima said.The Tourism Minister said corruption at several State-owned enterprises had tarnished the image of these corporations.”It is unfortunate that inefficiency in the management of parastatals has brought people to question the rationale for having parastatals.I believe we should deal with the problem of inefficient management rather than question the soundness of the concept of such outsourcing,” he said.Malima added that parastatals were never intended to become “kingdoms of incompetence and self-enrichment”.Air Namibia’s predicament, he said, had to be viewed in the context of recent developments within the international aviation industry.Last year several European airlines were reported to be in dire financial turmoil.Some chose to be liquidated, while others merged with other airlines due to huge losses they incurred.According to Malima, South African Airways registered losses of N$6,3 billion last year alone.The Minister said that because many overseas airlines chose not to fly to southern Africa, Air Namibia played a vital role in bringing visitors directly to Namibia, else they could be faced with setting aside up to four extra days arriving and departing via South Africa.Malima also said he supported plans by Air Namibia to re-introduce flights to London, saying it would broaden Namibia’s accessibility to North America as well as Scandinavia.This, he said, would boost Namibia’s tourism growth even further.The Minister said it had to be noted that the tourism sector contributed an estimated N$2,8 billion to Namibia’s Gross Domestic Product last year.This, he said, could not have been achieved without Air Namibia’s contribution.”While I am in agreement that serious mistakes were made in the past with regards to Air Namibia’s management, this new allocation is intended to enable the carrier to partly resolve those mistakes and increase it’s contribution towards tourism and general business growth and development,” Malima said.The Tourism Minister said corruption at several State-owned enterprises had tarnished the image of these corporations.”It is unfortunate that inefficiency in the management of parastatals has brought people to question the rationale for having parastatals.I believe we should deal with the problem of inefficient management rather than question the soundness of the concept of such outsourcing,” he said.Malima added that parastatals were never intended to become “kingdoms of incompetence and self-enrichment”.Air Namibia’s predicament, he said, had to be viewed in the context of recent developments within the international aviation industry.Last year several European airlines were reported to be in dire financial turmoil.Some chose to be liquidated, while others merged with other airlines due to huge losses they incurred.According to Malima, South African Airways registered losses of N$6,3 billion last year alone.The Minister said that because many overseas airlines chose not to fly to southern Africa, Air Namibia played a vital role in bringing visitors directly to Namibia, else they could be faced with setting aside up to four extra days arriving and departing via South Africa.Malima also said he supported plans by Air Namibia to re-introduce flights to London, saying it would broaden Namibia’s accessibility to North America as well as Scandinavia.This, he said, would boost Namibia’s tourism growth even further.