AIR NAMIBIA BAILOUT INCREASED

Dino D'Amore
By Dino D'Amore July 26, 2011 11:49

AIR NAMIBIA BAILOUT INCREASED

The government bailout of Air Namibia has increased to over N$1 billion with a promise from the Minister of Finance that this would be the last time as “their portion of funds is finished at the Ministry of Finance”.

The billion-dollar package is worked out on a new turnaround business plan just approved by the cabinet, and includes slightly over N$600 million already budgeted under the current Medium Term Expenditure Framework (MTEF).

The government has already committed to the purchase of two additional aircraft in the fifth or sixth year of implementing the business plan – on top of current purchase of two aircraft for delivery next year, and leasing of two aircraft next month.

Technically, the State would avail N$1,191 billion to the national airline under a three year rolling budget until 2012/14, which includes government commitment to finance the purchase of two brand new Airbus 319-100 aircrafts at a cost of about N$620 million (US$90 million), of which delivery is scheduled for next year.

But the State has also committed itself to guaranteeing the lease financing of two aircrafts from Air Berlin, at an undisclosed amount. Leased aircrafts start operations next month. The buying of two other aircrafts is only taking place in five years’ time.

Dino D'Amore
By Dino D'Amore July 26, 2011 11:49
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