Govt wants to avoid Air Namibia mistakes in Ethiopian talks

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Govt wants to avoid Air Namibia mistakes in Ethiopian talks

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TIRI MASAWI

The government says it wants to avoid the mistakes that led to the financial collapse of Air Namibia as it negotiates with Ethiopian Airlines over the establishment of the new national carrier, Namibia Air.

The position was contained in a 2 September 2026 statement by the Ministry of Works and Transport, issued after an internal briefing on the Ethiopian Airlines talks came into the public domain.

The ministry’s statement comes as the briefing reveals that Ethiopian Airlines has projected five years of losses under a proposed operating model for Namibia Air.

“The primary purpose of these consultations is to ensure that the mistakes of the past, which ultimately led to the financial collapse and closure of Air Namibia, are avoided at all costs in the establishment and operation of the new national airline,” the ministry said in its 2 September statement.

“The Government is determined to build a financially sustainable, operationally efficient, and commercially viable airline that will serve Namibians for generations to come.”

The ministry said the discussions with Ethiopian Airlines remain exploratory.

“However, no binding commitments have been entered into with any party at this stage,” it said.

The internal briefing report, also dated 2 September 2026, details meetings held between a Namibian delegation and Ethiopian Airlines in Addis Ababa on 21 and 22 August.

The delegation was led by Jonas Sheelongo, chairman of the Technical Committee for the National Airline.

It met Ethiopian Airlines chief executive officer Mesfin Tasew Bekele and senior management.

According to the briefing, Ethiopian reviewed Namibia’s market study and tabled a counter-proposal based on ATR 72-600 aircraft, training and maintenance support.

The proposal projected five years of losses.

“Ethiopian reviewed Namibia’s market study and tabled a counter-proposal centered on ATR 72 – 600 aircraft, training and MRO support, but projected five years of losses as per attached financial projections,” the briefing states.

ETHIOPIAN WANTS CONTROL

The talks have already drawn criticism from the Independent Patriots for Change (IPC).

In a statement dated 31 August 2026, issued before the ministry’s 2 September statement, the opposition party accused the government of sidelining Namibian aviation expertise.

IPC said the internal memorandum revealed “a deeply concerning surrender of operational oversight, an unjustified sidelining of qualified Namibian professionals, and a complete disregard for local feasibility assessments.”

The statement was issued by IPC shadow minister of works and transport Nelson Kalangula.

According to the 2 September ministry briefing, Ethiopian is not yet ready to take an equity stake in Namibia Air.

It said Ethiopian has three partnerships on the continent and needs more time before deciding whether to invest in Namibia Air.

But if Ethiopian becomes an equity partner, it wants management control.

“For equity partnership, Ethiopian stated the business plan must be commercially feasible, and it would require management control including CEO, CFO and maintenance positions,” the briefing states.

IPC questioned why these positions should be controlled by Ethiopian.

“Namibia possesses a pool of highly skilled, internationally certified aviation professionals,” the party said in its 31 August statement.

“We have qualified Namibian pilots, corporate finance experts, operations managers, and aircraft engineers who are fully capable of serving as CEOs, CFOs, and Heads of Maintenance.”

“How does this arrangement benefit Namibian aviation experts or foster domestic capacity building?”

ROUTES UNDER PRESSURE

Ethiopian proposed removing Windhoek-Johannesburg, Windhoek-Cape Town and Windhoek-Luanda from the initial route network.

Namibia rejected the proposal.

“Namibia reiterated the importance of the Windhoek – Johannesburg, Windhoek – Cape Town and Windhoek Luanda routes for the success of the business plan,” the 2 September briefing states.

IPC described the three routes as “primary revenue-generating regional routes” and called for them to remain central to Namibia Air’s business model.

FLEET DISAGREEMENT

Ethiopian proposed that Namibia Air start with three ATR 72-600 aircraft for its first three years.

It proposed introducing a Boeing 767 later.

Namibia had proposed Embraer 145/175 jets based on the size of the market.

The two sides agreed to assess Embraer aircraft for domestic operations.

Ethiopian also recommended starting with three aircraft and one daily flight to Johannesburg.

“Ethiopian advised starting with three aircraft and one daily flight to Johannesburg, increasing later on, to avoid high risks,” the briefing states.

It recommended leasing aircraft instead of buying them.

“Ethiopian further recommended leasing as opposed to purchasing aircraft for a startup airline.”

IPC, in its 31 August statement, described the ATR proposal as a “fleet downgrade” from Namibia’s original strategy.

TECHNICAL SUPPORT AGREED

Despite the differences, the 2 September briefing says the two sides agreed to explore technical cooperation through a management contract.

Ethiopian indicated that it could immediately assign personnel to help refine the Namibia Air business plan and set up the airline.

It also committed to providing technical support even without a management agreement.

“Ethiopian will share a draft management contract, and preparation will commence regarding certification documentation for the Namibia Civil Aviation authority,” the briefing states.

Potential support includes training, maintenance, repair and overhaul, manuals, access to Ethiopian finance and IT systems, and preferential aircraft leasing rates.

DECEMBER TARGET QUESTIONED

The ministry wants the technical cooperation and management contract process to proceed while Ethiopian considers equity participation.

It also recommends prioritising certification support and refinement of the business plan.

The target is to commence Namibia Air operations by December 2026.

IPC, in its 31 August statement, called for the target to be reconsidered.

The party warned against rushing the process and signing a management contract that could compromise Namibia’s aviation interests.

It also called for the full cost of the feasibility and market study to be placed before Parliament.

The ministry, in its 2 September statement, maintained that no final agreement has been reached.

It said the government would continue assessing different forms of technical and strategic cooperation.

“The Government is committed to exploring various forms of technical and strategic cooperation, while ensuring that Namibian expertise and national interests remain central to any future arrangement,” it said.



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