AIR Namibia is optimistic that its direct flights from Windhoek to London will help to turn around its financial position.
In an interview with The Namibian, the airline’s public relations officer, Ellison Hijarunguru, said a viability study had indicated that the route would be profitable. Hijarunguru’s optimism flies in the face of market sentiments that the national airline is bound to rack up further losses.He said the London route was part of a new business model that would turn around the company.”Our business model has shown that the route is profitable.We are confident and optimistic about the reintroduction of the flight.”Tomorrow’s inaugural flight was 70 per cent booked by yesterday, said Hijarunguru.During the first year of operation on its London flights, the airline expects about 30 000 passengers.Hijarunguru said that Air Namibia’s earlier, failed attempt at a London route was an indirect flight that connected London via Frankfurt while this time around, the airline was introducing a direct flight.”This will be a direct flight flying three times a week to London.We are more than optimistic that it will be profitable.”He added that the London flights would also unlock business and investment opportunities for Namibia.Only last week, an opposition parliamentarian told the National Assembly that the continued budgetary support to Air Namibia was “a waste of resources”.Johan de Waal of the opposition DTA said the State was forking out millions of taxpayer dollars on an annual basis to save the airline from collapse.He said it was contradictory that, on the one hand, Government was preaching financial prudence but on the other, it tolerated loss-making parastatals.De Waal questioned the wisdom of reintroducing the London route, saying it would lead to even bigger losses.This year’s National Budget allocates N$160 million to Air Namibia.Hijarunguru’s optimism flies in the face of market sentiments that the national airline is bound to rack up further losses.He said the London route was part of a new business model that would turn around the company.”Our business model has shown that the route is profitable.We are confident and optimistic about the reintroduction of the flight.”Tomorrow’s inaugural flight was 70 per cent booked by yesterday, said Hijarunguru.During the first year of operation on its London flights, the airline expects about 30 000 passengers.Hijarunguru said that Air Namibia’s earlier, failed attempt at a London route was an indirect flight that connected London via Frankfurt while this time around, the airline was introducing a direct flight.”This will be a direct flight flying three times a week to London.We are more than optimistic that it will be profitable.”He added that the London flights would also unlock business and investment opportunities for Namibia.Only last week, an opposition parliamentarian told the National Assembly that the continued budgetary support to Air Namibia was “a waste of resources”.Johan de Waal of the opposition DTA said the State was forking out millions of taxpayer dollars on an annual basis to save the airline from collapse.He said it was contradictory that, on the one hand, Government was preaching financial prudence but on the other, it tolerated loss-making parastatals.De Waal questioned the wisdom of reintroducing the London route, saying it would lead to even bigger losses.This year’s National Budget allocates N$160 million to Air Namibia.
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