Different Air Namibia model necessary

Different Air Namibia model necessaryAirline not expected to make any profit soon The minister of public enterprises, Leon Jooste, says the government must consider all options in turning around Air Namibia. Minister of public enterprises Leon Jooste says it will become necessary to change Air Namibia's business model.

According to him, there are no indications that the national airline will be making any profit soon and it is necessary to curb the losses it is making.

He made the comments following news that German airline Lufthansa may in due course resume flights between Windhoek and Frankfurt.

“The chances of Air Namibia making a profit are very limited. What we are [also] saying is that the cost of running Air Namibia must be a lot less.

“We are looking at all underperforming public entities. We are looking at all restructuring options.

We should be less sensitive and less guarded about these things,” said Jooste, who was speaking at a University of Namibia lecture series on Monday evening.

He added that introducing a new business model did not seem far-fetched but did not present much detail. “Redesigning the Air Namibia model is definitely a possibility,” said Jooste.

According to Jooste, there was no reason why Air Namibia could not look towards a public-private-partnership model.

This model was working well at the Windhoek Country Club and Resort which was a loss-making entity after it had been constructed, and at MTC.

“Why is the Windhoek Country Club and Resort working? It is working because of a good PPP framework. MTC is a PPP. These are the things that we need to evaluate,” said Jooste.

“You've got to earn your keep, we are not going to keep that honeymoon going forever and forever.”

Jooste also urged members of the public to approach the ministry of public enterprises with evidence of corruption.

According to him, the ministry was working in close collaboration with the Anti-Corruption Commission to root out bad practices at public entities.

“Don't come with gossip to the ministry of public enterprises, don't be cowards. Bring these things to us or forever hold your peace,” said Jooste.

During a question-and-answer session, Landless People's Movement activist Henny Seibeb rose to quiz Jooste why the former chairpersons of the SME Bank, Frans Kapofi and George Simataa, were not charged following the bank's closure.

This was in response to a comment from President Hage Geingob that Simataa and Kapofi were not to be blamed for the bankruptcy of the SME Bank.

“We have the power to investigate. We are doing multiplies of these investigations.

The SME Bank was being overtaken by events,” said Jooste.

The minister then turned his attention to recently formed public enterprise Namibia Desert Diamonds (Namdia).

“I anticipate results very soon. We are investigating Namdia and there will be consequences,” said Jooste.

The minister also said that he had observed a shift in the adherence to corporate governance.

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