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AIR NAMIBIA: HOW THE AIRLINE GOT WHERE IT IS PART I (3) FAKE BREAK EVEN REPORT

In a bid to prove that the turnaround strategies were bearing fruits, Air Namibia hired a London-based firm to compile a report that claimed the airline was coming around.
The report titled The Economic Impact of Air Namibia 2015/16, said Air Namibia contributed N$704 million to the economy and sustained more than 4 500 jobs.
The report further claimed that the airline spent more than N$1 billion on goods and services locally.
It estimated that Air Namibia generated about N$316 million in 2015/16, saying further that this was equivalent to 55% of the subsidy the airline had received that year.
Schlettwein doubted the report, saying that Air Namibia depends on state bailouts and subsidies. Air Namibia was allocated N$486 million for the 2017/18 financial year, N$493,9 million in 2018/19, and N$497,7 million in 2019/20.
After claiming almost breaking even, Air Namibia almost failed to get N$50 million from the government after the works ministry had written to them about the lack of funds in 2017.
The then work permanent secretary Willem Goeiemann told the airline that “due to a very limited ceiling (fund allocation) for July received from the treasury, the ministry is unable to pay for your government subsidy allocation”.

Wonder Guchu

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