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Air Namibia outlook positive u00e2u20acu201c Geingob
Air Namibia outlook positive u00e2u20acu201c Geingob

Air Namibia outlook positive – Geingob

Prime Minister Dr Hage Geingob says the future of Air Namibia looks positive, as the airline is working hard to identify strategies which can help improve its financial fortunes. Geingob said this in response to questions by Rally for Democracy and Progress (RDP) Member of Parliament (MP), Anton von Wietersheim, about the present and future strategy for Air Namibia. Speaking in the National Assembly last week, Geingob explained that Air Namibia is currently in the second year of its current business plan, with most initiatives which needed execution already implemented. “The management of Air Namibia is confident that the strategy adopted is starting to bear the desired fruits. For starters, the reputation of Air Namibia has turned positive in the market,” he said. Geingob added that aspects of reliability have been addressed, and people as well as companies have started selecting Air Namibia as their preferred airline. According to him, interim financial performance statements produced for the first six months of this year show improvement, compared to the same period in 2012. Revenue generated in the first six months of 2013 is N$782 million, compared to N$644 million over the same period last year, representing a 21% improvement. He said that though the airline was still operating at loss of N$69 million, this was marked improvement over previous years. Geingob stressed that the airlines operate in a highly competitive environment with ever-increasing costs, which cannot be too easily passed on to customers. The airline, he indicated, historically had an old fleet which was expensive to maintain, a situation he said was compounded by reliability issues. With its new fleet, a notable improvement in reliability has already been achieved, Geingob said, and confidence from the market had grown positive. “Although profitability might not be achieved in the near future, what is important is that the country gets more value from Air Namibia than the amount of money which is being put into the airline,” he stressed. Geingob added that during past years, grants given to Air Namibia went toward the purchase of new aircraft, adding that this will help guarantee the sustainability of future operations. He made it clear that governments all over the world are very protective of national carriers, and see them as a great way to project a national image or identity especially at foreign airports. “This, however, is not the only reason that governments protect their airlines. It is an industry that moves the world’s economy, creating employment for 5.5 million people, despite the fact that it is a difficult one for shareholders in which to make money.” WINDHOEK NAMPA

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Namibian Sun 2024-11-20

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