Minister defends AirNam expansion plans

AIR Namibia’s efforts to establish direct linkages with Europe will boost tourism and reduce the country’s dependence on other airlines for linkages with the West, a Government Minister said yesterday.

Responding to issues raised by DTA Member of Parliament Johan de Waal, Finance Minister Saara Kuugongelwa-Amadhila said experience had shown that dependence on regional and other airlines was not the best of option. “It must be recognised that Air Namibia’s turnaround strategy meant to steer the company is geared at establishing direct links with Europe so as to record increased business activity and enhance investment, particularly in the tourism sector,” she said.Kuugongelwa-Amadhila said the reintroduction of the London-Windhoek direct flight was part of the restructuring strategy.The Minister was upbeat that the London flight would bring in more revenue, thus enabling the loss-making parastatal to make profit.Kuugongelwa-Amadhila said preliminary findings had indicated that Air Namibia would fill between 65 and 70 per cent of the seats in its planes in the first year of operation.However, to break even, the parastatal ought to hit the 77-per cent mark in terms of bookings.The London-Windhoek flight to be launched tomorrow already had a 70 per cent booking.However, the figure was expected to fall to as low as 33 per cent in August, said Kuugongelwa-Amadhila.The Minister said on average it would cost Air Namibia N$3 000 per passenger per flight for the Windhoek-London route.The route consumed some 8 100 litres of fuel per flight, thus costing the national airline N$24 988,50.Maintenance costs per hourly rate amounted to N$11 900.In a related matter, the Finance Minister said the leasing of the A340 300 Airbus was costing US$530 000 per month.She also told the National Assembly that Air Namibia’s Fokker F28-3000 aircraft was not making any significant contribution, hence the national airline was looking at the best possible way of disposing of it.The current value of the aircraft is estimated to be between N$600 000 and N$700 000.”It must be recognised that Air Namibia’s turnaround strategy meant to steer the company is geared at establishing direct links with Europe so as to record increased business activity and enhance investment, particularly in the tourism sector,” she said.Kuugongelwa-Amadhila said the reintroduction of the London-Windhoek direct flight was part of the restructuring strategy.The Minister was upbeat that the London flight would bring in more revenue, thus enabling the loss-making parastatal to make profit.Kuugongelwa-Amadhila said preliminary findings had indicated that Air Namibia would fill between 65 and 70 per cent of the seats in its planes in the first year of operation.However, to break even, the parastatal ought to hit the 77-per cent mark in terms of bookings.The London-Windhoek flight to be launched tomorrow already had a 70 per cent booking.However, the figure was expected to fall to as low as 33 per cent in August, said Kuugongelwa-Amadhila.The Minister said on average it would cost Air Namibia N$3 000 per passenger per flight for the Windhoek-London route.The route consumed some 8 100 litres of fuel per flight, thus costing the national airline N$24 988,50.Maintenance costs per hourly rate amounted to N$11 900. In a related matter, the Finance Minister said the leasing of the A340 300 Airbus was costing US$530 000 per month.She also told the National Assembly that Air Namibia’s Fokker F28-3000 aircraft was not making any significant contribution, hence the national airline was looking at the best possible way of disposing of it.The current value of the aircraft is estimated to be between N$600 000 and N$700 000.