Windhoek refuses to cover national carrier’s debt

Namibia’s Public Enterprises Minister Leon Jooste says the government will not pay the N$104m which Air Namibia owes Belgian company Challenge Air. This comes after the government opted to have the national airline voluntarily liquidated. As previously reported in Legalbrief Today, the national carrier this month suspended all operations, cancelling its flights and grounding its aircraft. It urged all customers to cancel reservations and request refunds. Cabinet’s decision to file for voluntary liquidation leaves more than 600 employees without jobs. The Namibian reports that the government is seeking to have the move registered with the Business and Intellectual Property Authority to ensure that the bankrupt Challenge Air's liquidator, which sued Air Namibia over unpaid debts last year, cannot attach any of the airline's assets. Air Namibia in December 2019 acknowledged it owed Challenge Air around N$333m as a result of aircraft leases and undertook to pay that sum in monthly instalments until September 2020. By April 2020, the airline had repaid about N$150m, but in the wake of the Covid-19 pandemic closure of borders and suspension of flights, it then stopped making payments. The Belgian airline on Friday served Air Namibia with a writ of execution for N$104m, for breaching its settlement agreement payment plan.