AIR Namibia will have to cough up with five million euros (about N$92 million) before 18 February 2021 as a first instalment, and make monthly payments in the amounts 677 172.50 euros (about N$12 471 196.24 on today’s exchange rate) until January next year to a Belgian company to avoid liquidation.
The company, Challenge Air, which was liquidated in March 1998, a day after it entered the agreement with Air Namibia, insists that the national airline owes it over 9 million euros following a decision to lease a 351-passenger Boeing 767-300 aircraft.
Air Namibia, after entering the agreement, reportedly discovered that the aircraft was defective and has been fighting since then to get out of the agreement.
The private company last year approached the courts in an attempt to shut down the national airline.
Today, the Windhoek High Court was scheduled to decide whether or not Air Namibia would be liquidated.
Before Judge Kobus Miller could pronounce himself on the matter, however, the parties agreed that Air Namibia would make said payments.
Sisa Namandje is representing the Belgian company, while Sacky Akweenda is representing Air Namibia.
According to the settlement, Air Namibia in December 2019 agreed to pay the outstanding amount after the Belgian company approached a regional court in Germany in 2015.
Air Namibia, according to court papers, defaulted payment as per the order, prompting a liquidation application.
The minister of State Owned Enterprises, Leon Jooste did not response to questions at the time of publishing as he said he was in a meeting.
Air Namibia Spokesperson Twaku Kayofa could not comment on whether or not the agreement would be complied with or whether or not the past would repeat itself due to a lack of funds, as he is yet to be briefed.