AIR NAMIBIA, which has been on a financial drip since 2000, continues to drain the national coffers.
Finance Minister Saara Kuugongelwa-Amadhila circumvented the nitty-gritty in her Budget speech, but the Budget document indicates that the ailing airline will receive another massive cash injection from Government – this time of N$136,6 million – for the financial year ending March 2008. Last year, Air Namibia received N$153,4 million.The airline will receive another N$103,66 million each during 2008-09 and 2009-10.This will total N$343,90 million over the next 36 months.Over the past few years, Air Namibia has cost taxpayers approximately N$2 billion.By 2010, this will have risen to approximately N$2,4 billion, the largest bailout ever undertaken by Government.”To enable Air Namibia to continue its operations we made provision for some support under the Budget.In addition, its debt will be ring-fenced and serviced by Government,” was all the Finance Minister said yesterday.”We commissioned an independent study last October to assess the viability of Air Namibia as a business in an effort to restructure the company,” the Minister added.”The report of the consultants has been tabled with Government and internal consultations are ongoing.”Air Namibia has accumulated N$859,8 million in operating losses in the past five years.This was revealed last September when Kuugongelwa-Amadhila tabled the long-awaited annual report of Air Namibia in Parliament, which covered the 12 months ending March 31 2005.The report included a consolidated overview of income, expenditure and operating losses covering five years between March 2000 and March 2005.In 2006, Government guaranteed overdraft facilities of N$81 million for Air Namibia at one local bank and another N$35 million at a second local bank, totalling N$116 million.Added to that were a further N$33 million for the so-called “turnaround strategy” during 2006-7.This was topped by N$80 million that Government dished out to Air Namibia for the lease, maintenance and insurance of aircraft.A further N$40 million came from State coffers to allow the national carrier to repay some of its loans and overdrafts.But this was not the end yet.In December 2005, Air Namibia took out loans to the tune of N$86 million to keep afloat.Between April 2004 and March 2005, Government made another N$366 million available to Air Namibia.Last year, Air Namibia received N$153,4 million.The airline will receive another N$103,66 million each during 2008-09 and 2009-10.This will total N$343,90 million over the next 36 months.Over the past few years, Air Namibia has cost taxpayers approximately N$2 billion.By 2010, this will have risen to approximately N$2,4 billion, the largest bailout ever undertaken by Government.”To enable Air Namibia to continue its operations we made provision for some support under the Budget.In addition, its debt will be ring-fenced and serviced by Government,” was all the Finance Minister said yesterday.”We commissioned an independent study last October to assess the viability of Air Namibia as a business in an effort to restructure the company,” the Minister added.”The report of the consultants has been tabled with Government and internal consultations are ongoing.”Air Namibia has accumulated N$859,8 million in operating losses in the past five years. This was revealed last September when Kuugongelwa-Amadhila tabled the long-awaited annual report of Air Namibia in Parliament, which covered the 12 months ending March 31 2005.The report included a consolidated overview of income, expenditure and operating losses covering five years between March 2000 and March 2005.In 2006, Government guaranteed overdraft facilities of N$81 million for Air Namibia at one local bank and another N$35 million at a second local bank, totalling N$116 million.Added to that were a further N$33 million for the so-called “turnaround strategy” during 2006-7.This was topped by N$80 million that Government dished out to Air Namibia for the lease, maintenance and insurance of aircraft.A further N$40 million came from State coffers to allow the national carrier to repay some of its loans and overdrafts.But this was not the end yet.In December 2005, Air Namibia took out loans to the tune of N$86 million to keep afloat.Between April 2004 and March 2005, Government made another N$366 million available to Air Namibia.
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