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SA’s Airlink acquires 40% of FlyNamibia

September 28, 2022 0
SA’s Airlink acquires 40% of FlyNamibia

South Africa’s Airlink says its acquisition of a 40% stake in FlyNamibia will give stability to the privately owned independent airline.

The new joint venture will see FlyNamibia’s breakaway from WestAir Aviation, although it will still be leasing aircraft, as it comes under a new management and financiers.

"We can’t reveal how much was invested, but you can imagine this is a significant amount, which will go a long way," FlyNamibia's managing director Andre Compion told The Brief.

The investment is underpinned by a commercial franchise agreement under which Fly Namibia will adopt Airlink’s “4Z” International Air Transport Association (IATA) designator for its ticket sales and scheduled flights, while retaining its unique corporate identity, brand and aircraft livery. 

It will also see FlyNamibia’s inventory attaining higher visibility and being promoted on Airlink’s computerised reservation system and on those of major foreign airlines that have partnered with Airlink.

Under the agreement, Airlink will also provide additional airline operations, technical and commercial skills training and development support for FlyNamibia.

"This joint venture instills confidence and forms a key collaboration as it gives us access to markets that were impossible to access over the years, with more global networks. 

“Our operations will remain the same as there will be no direct influence from Airlink on how we should operate, instead we shall expand from the current domestic and regional destination, and include more routes brought as a result of the corporation," said Compion.

Airlink’s MD Roger Foster said FlyNamibia’s composition and outlook will not change, but will stick to its identity.

“Rather the JV [joint venture] brings sustainability, robust and elaborative operations as we remain independent. FlyNamibia will be evaluating its new opportunities and engaging in what is deemed sustainable, but none of the shareholders will dictate,” Foster said. 

Through a joint announcement today, both parties said the venture of Airlink and FlyNamibia, will support Namibia’s National Transport Policy vision by providing safe, reliable, effective, efficient and affordable air transport with world-class service levels.  

This will be through enhancing productivity in economic sectors and developing complementary engines of growth.

"It is also aligned with the Economic Advancement objectives set out under Namibia’s second Harambee Prosperity Plan for 2021-2025," the companies said. 

The airliners hope the investment will accelerate Namibia’s post-pandemic recovery and drive the expansion of efficient scheduled airline services to, from and within Namibia and globally.

Airlink and FlyNamibia will optimise their schedules to provide the most convenient connections between their respective flights and with long-haul inter-continental flights provided by Airlink’s other commercial partners, which include more than 20 of the world’s leading global airlines.

The changes will come into effect as soon as practicable, after which all existing bookings for FlyNamibia flights will be amended at no cost or inconvenience to customers, they said.

“Namibia is unique, not only in its natural, mineral and human wealth, but its relatively small population relative to the size of its territory.  With this in mind, we will be well placed to achieve the economies of scale to make it economically feasible to connect and serve Namibia’s smaller towns and cities with Windhoek and other regional destinations, while also providing convenient and easy access to other markets around the world.  

“This will also support our and Namibia’s shared longer-term ambition to establish Hosea Kutako International Airport as the central connecting hub and base.  In doing so, we will help to make air travel and transport more efficient and enhance Namibia’s competitive position as a destination for trade and tourism,” said Foster.

He added that domestic flights will continue as usual and possibly increase destinations like to Luanda, Maun and Victoria falls.

From its Johannesburg hub, Airlink serves Windhoek up to four times a day and Walvis Bay daily.  

In addition, from Cape Town, Airlink operates up to three return flights a day to Windhoek and a daily return service to Walvis Bay. 

FlyNamibia currently operates domestic flights from Windhoek’s Eros Airport to Ondangwa, Rundu and Katima Mulilo and regional flights to Cape Town operating six times a week from Hosea Kutako International Airport.

Meanwhile, Compion said Namibia’s economy is expanding and has the potential to grow rapidly with new offshore oil drilling and mining, the resurgence in tourism and its establishment as a pioneering producer of green hydrogen for the global energy market. 

“To realise its full economic potential, Namibia will depend increasingly upon air connectivity to move people and goods between markets.  By joining hands with Airlink and becoming part of its global network, we will be even better able to serve foreign and local tourists and businesses.  

“In addition, we will be building capacity, developing aviation skills and creating direct and indirect job opportunities,” FlyNamibia MD said. 

 

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Last modified on Saturday, 01 October 2022 14:11
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