The airline Air Namibia has come to an end. Operations ceased on Thursday and the government said the company, which had been in the air for around 75 years, will be liquidated. Affected passengers should contact the airline for possible reimbursement claims.

The state-owned aviation company currently employs 636 people who are to receive severance pay. However, given the current corona crisis, the prospects for new jobs are not exactly rosy. On Thursday representatives from Air Namibia, the union and the government want to meet and discuss further details of the liquidation.

The reason for the closure is that the airline was unsuccessful in a lawsuit by the lessor Challengair at the Namibian Supreme Court at the beginning of the month. Negotiations were held about outstanding leasing installments for a Boeing 767-300ER. The demands go back to 1998. Ultimately, it was agreed that a sum of 9,9 million euros would be paid in installments. The first partial payment of five million euros is due on February 18, 2021.

In any case, the government does not agree with this decision and since the state Air Namibia is financially troubled anyway, it was decided to liquidate. Finance Minister Ipumbu Shiimi put the capital requirement at around 461,6 million US dollars. Taxpayers do not want to be expected to pay this amount.

The Air Nambia fleet last consisted of three Airbus A319s, two A330-200s, four Embraer 135s and one inactive Boeing 737-500. The long-haul jets are leased from Castlelake. An Airbus A319 is leased from Deucalion Aviation Funds. The other machines are owned by the airline.