A EUROPEAN firm has instructed Air Namibia to return two of its greatest aeroplanes this week after the federal government’s resolution to close the airline down.
Air Namibia’s present fleet consists of the 2 leased Airbus A330-200 plane, two Airbus A319-100 planes and 4 Embraer ERJ 135s.
The 244-seater A330-200 is the largest plane within the airline’s ranks and was usually used for the Windhoek-Frankfurt route.
Air Namibia’s lease settlement on the Airbus aircraft stretched from Might 2012 to October 2025, however the authorities’s resolution to close the nationwide airline down means this settlement must be cancelled – at a price of round N$2,4 billion.
An organization referred to as Air Lease 80 (Eire) wrote to Air Namibia final Friday explaining they might set off a clause within the contract that permits them to have the 2 Airbus plane returned.
The European firm’s director, Patrick Waldron, wrote to Air Namibia’s performing chief govt officer, Theo Mberirua, saying the nationwide airline has defaulted.
“We expressly reserve our rights to retake possession of the plane,” Waldron mentioned.
Sigfus Olafsson, advertising vp of Castlelake plane, despatched an electronic mail to Air Namibia final week, asking for “your form help to rearrange for the ferry flight of the 2 A300-200 plane to a storage location as early as subsequent week”.
He mentioned Castlelake’s technical boss, Andrew Titus-Glover, would attain out to the airline to coordinate the storage of the planes.
Titus-Glover then emailed Air Namibia’s upkeep supervisor, Stanley Kariko, outlining the preparation of the plane’s return to Europe.
“We’d recognize it if you happen to might begin preparation to reposition each A330 plane into Europe for storage as shortly as attainable,” he mentioned.
Titus-Glover proposed that the aeroplanes be returned this week.
The storage areas, he mentioned, are Malta, Leipzig or Nimes.
Mberirua yesterday confirmed that the collectors have began gunning for what’s owed to them.
“In fact, any creditor would go for what’s theirs … These are default measures in place in case one thing goes incorrect,” he mentioned.
In response to data seen by The Namibian, a good portion of the federal government subsidy to Air Namibia is paid in the direction of the A330-200 operation.
Round N$500 million was paid per 12 months to cowl plane leases, and upkeep would price N$ 414 million.
The data reveals that the A330 plane lease agreements are legitimate till October 2025.
The contracts require fee for the remaining 4 years if lease agreements are terminated prematurely.
In response to a 2019 dialogue paper performed by the previous board of administrators, N$2,4 billion would have to be paid to international house owners.
Along with paying the lease charge, Air Namibia could forfeit the safety deposit at present sitting with the lessor, amounting to N$94 million.
Sources say minister of public enterprises Leon Jooste and minister of finance Iipumbu Shiimi acted “reckless” by asserting the liquidation of the airline with out concluding negotiations with key collectors.
“They tousled huge time. Which means they’re prone to demand upfront fee of billions,” a supply mentioned.
In response to the paper, the federal government would want to fork out N$3,8 billion to go forward with voluntary liquidation.
This may be used to settle agreements previous to maturity, which embrace plane lease and engine assist agreements, worker severance pay and the legal responsibility of advance ticket gross sales.
The debt amassed by the airline amounted to N$1,6 billion on the time the paper was drafted.
The paper additional said if the federal government was to approve the implementation of the envisaged new marketing strategy, the airline’s monetary outcomes would enhance from a loss in extra of N$769 million within the 2019/20 monetary 12 months, to N$100 million in the course of the 2020/21 monetary 12 months, and thereafter change into totally worthwhile.
The figures contained within the report could have modified because the report was finalised in 2019.
All belongings must be listed as soon as a liquidator is appointed and bought off to get better funds to repay collectors.
In response to the federal government, Air Namibia’s belongings at e-book worth stood at N$981 million as at August 2020, whereas the airline owes round N$3 billion.
Belongings to be forfeited, in keeping with the 2019 paper, are: the Embraer ERJ plane with a residual worth at N$90 million, the 2 Airbus A319 plane valued at N$540 million, the airline’s workplace constructing valued at N$45 million, floor dealing with tools at N$45 million, the Worldwide Air Transport Affiliation’s safety deposit at N$102 million, and different fastened belongings value N$30 million.
As of 2019, workers retrenchment prices would quantity to N$161 million for its 750 workers.
Go away days paid out would quantity to N$40 million, discover intervals to N$34 million, bonus provision/accrual to N$12 million and severance pay to N$75 million.
Unflown ticket legal responsibility on the time stood at N$450 million.
The Nationwide Union of Namibian Staff (NUNW) is about to carry a nationwide demonstration at this time.
That is in solidarity with the 644 Air Namibia workers who could be jobless if liquidation proceeds.
NUNW’s secretary normal Job Muniaro yesterday mentioned the police have given approval for the demonstration offered it doesn’t change into unruly and adheres to set circumstances.
“We had a terrific assembly with the police … All is so as,” he mentioned.
Muniaro on Sunday mentioned the demonstration would name for Jooste’s resignation and for the federal government to reverse its resolution to liquidate the nationwide airline.
It’s because the unions weren’t consulted earlier than the choice was taken, he mentioned.
Nationwide police spokesperson deputy commissioner Kauna Shikwambi additionally confirmed police approval for the demonstration.