Government has completed a feasibility study into the possible establishment of a new national airline, tentatively known as Namibia Air, with less than N$800,000 spent on the exercise thus far despite an initial budget allocation of N$20 million.
Works and Transport Minister Veikko Nekundi revealed in the National Assembly that the study has been finalised and is currently under review, marking a significant step in government’s efforts to revive a national carrier five years after the liquidation of Air Namibia.
The study was conducted during the current financial year by an inter-ministerial team of experts drawn from government institutions and the aviation sector.
“Therefore, at this stage, unfortunately we are unable to reveal much. However, I can confirm that the feasibility study is done and is now under review. We had budgeted for about N$20 million, of which less than 4% have been utilised to that effect. The study was conducted by the inter-ministerial team of experts; the study was conducted during the current financial year,” Nekundi said.
Although N$20 million was budgeted for the feasibility study, Nekundi said less than four percent of the allocation, or under N$800,000, has been utilised thus far.
However, the minister declined to disclose the findings of the study, arguing that the aviation industry requires careful strategic planning due to its highly competitive nature.
“Honourable members, as leaders of this country, just as other countries around the world, we must know what to publish and when to publish. The aviation industry is highly complex and competitive, therefore we must understand and appreciate the strategic scope and framework required to enter such a complex and competitive industry,” he said.
According to Nekundi, the committee overseeing the project includes representatives from the Ministry of Works and Transport, the Ministry of Finance, the Office of the Attorney General, Namibia Airports Company, the Namibia Civil Aviation Authority, the Namibia Investment Promotion and Development Board (NIPDB) and aviation industry stakeholders.
He said the team also includes three aviation specialists with a combined industry experience of more than 50 years, supported by experts in law, transport economics and governance.
The proposed airline would mark government’s return to commercial aviation following the collapse of Air Namibia in 2021 after years of financial losses and repeated state bailouts.
While government has not yet indicated whether the study recommends proceeding with the airline, Nekundi said work on the project remains ongoing.
The completion of the feasibility study is expected to inform government’s next steps on whether Namibia should re-enter the aviation market through a state-backed carrier or pursue alternative models to improve air connectivity and support tourism, trade and economic development.
