Air Namibia Cancels Operations and Placed into Voluntary Liquidation

Air Namibia cancelled all flights and placed into voluntary liquidation on Thursday into what was described as being ‘unsustainable’, amid the coronavirus outbreak that’s wiped out travel demand globally.

“The country’s economy can no longer afford to perpetually provide financial support to Air Namibia at the expense of supporting economic growth and critical social services,” Finance Minister Iipumbu Shiimi told a news confrence.

Earlier, the state cancelled all the airline’s operations and ordered all the aircrafts to return to base.

“Effective Thursday, 11 February 2021, all flight operations will be cancelled with all aircraft returning to base,” read a notice from the company.

Customers with outstanding bookings were told ‘register their claims for refund’ by calling the company’s offices.

“It is therefore important for the nation to understand that the current debt of Air Namibia is unsustainable and will jeopardise the economic recovery plan,” Shiimi said.

The Namibian Cabinet had approved the voluntary liquidation of Air Namibia, The Namibian Sun announced on Thursday.

Consequently, the airlines 644 workers will be rendered jobless, however,  they will receive 12 months of pay as part of a severance package.

The story has been updated

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