WINDHOEK (Reuters) – Air Namibia survived a meltdown of meltdown attempts with a Belgian Flying Challenge Challenge on Friday when the two companies reached 10 million euro ($ 12 million) settlement minutes before a meltdown was expected.
ChallengeAir had filed for the liquidation of a flag-bearing carrier that made a loss last year, arguing that Air Namibia was bankrupt and was unable to repay about 253 million Namibian dollars ($ 17 million) in acquired debts for the Boeing 767 lease back in 1998.
Air Namibia had canceled the lease, after discovering that the plane was defective. Negotiations between the two companies have been locked out since 2019.
Air Namibia ChallengeAir will pay US $ 9.9 million, starting with a 5 million-euro payment by February 18 and monthly installments thereafter until January 2022, according to a settlement agreement seen by Reuters.
Air Namibia is sinking. It currently employs 644 staff. The state-owned company has failed to issue financial statements in recent years despite consistent state support over the past two decades.
The government has rejected the airline’s complaints for more money, saying 15 out of the airline’s 19 routes were at a loss.
($ 1 = 0.8243 euros)
($ 1 = 15.1180 Namibian dollars)
Reciting with Nyasha Nyaungwa; Edited by Mfuneko Toyana and Sonya Hepinstall