Namibia Air as 'fledgling' of Ethiopian Airlines?

The Namibian government is negotiating with Ethiopian Airlines regarding a potential partnership to establish the new state-owned airline, Namibia Air. According to media reports, one of the reasons is to avoid repeating the mistakes made with Air Namibia, which was liquidated in 2021.

Citing an internal memo addressed to Minister of Works and Transport, Veikko Nekundi, the Windhoek Observer reported on talks held in Addis Ababa on August 21 and 22. The discussions reportedly covered the management of the new airline, its fleet, destinations, and the launch schedule.

Ethiopian Airlines has expressed readiness to leverage its expertise and business connections to assist with aircraft procurement and maintenance. It could also support Namibia Air in preparing certification documentation for the Namibian Civil Aviation Authority.

However, according to the report, for a partnership involving an equity stake – which is also under discussion – Ethiopian Airlines is demanding the right to appoint Namibia Air’s management team. There is reportedly a lack of agreement on other points as well.

For instance, Ethiopian apparently reviewed the market study which had been prepared and submitted counter-proposals to the existing plans. Instead of Embraer aircraft, it would prefer to acquire the ATR 72-600 – a widely used twin-engine turboprop regional airliner manufactured by ATR. ATR is a joint venture between Airbus and Leonardo.

Namibia Air was reportedly asked to remove the targeted routes to Johannesburg, Cape Town, and Luanda – considered lucrative – from its plan. According to the Windhoek Observer, the Ethiopian side's assessment that the new airline would incur losses during its first five years also caused dissatisfaction.

Government denies reported details

The Namibian government confirmed the negotiations, The Namibian reported. The aim was to gain clarity on technical details and avoid repeating mistakes made with Air Namibia. However, the Ministry of Works and Transport dismissed the reported details of the talks as incorrect.

Five years after the liquidation of Air Namibia, the Namibian government intends to establish a state-owned airline once again (see earlier report by Namibian.org). Namibia Air (Pty) Ltd received its operating licenses in early August. The necessary Air Operator Certificate (AOC) is still pending.

Experts have expressed skepticism regarding the newly founded airline's timeline and potential for economic success. Domestically, Namibia Air faces competition from the private carrier FlyNamibia. Well-known airlines such as Airlink and South African Airways are already operating on the lucrative routes in Southern Africa.

Namibia's flag on the wingtip: Five years after liquidation of Air Namibia in 2021, the new state-owned airline Namibia Air is gradually taking shape.  Photo (2008): Sven-Eric Stender