Air Namibia may have to suspend its only intercontinental service amid charges of arm-twisting by Bonn officials which leaves German carriers in a dominant position.
The airline, which entered the long-haul market only four years ago, says it may have to cease operating its three times weekly Windhoek-Frankfurt-London service if some degree of government protection is not forthcoming.
Air Namibia is accusing the German delegation of steam rollering the Namibian authorities into accepting a 58 per cent increase in capacity at the bilateral negotiations in Windhoek towards the end of last year. This is despite all party agreement that the present allocation is already 40 per cent over capacity.
With considerable German capital flowing into Namibia since independence, suspicion is mounting that the seat increase represents part of a package of measures aimed at rewarding investors.
'The seat increase benefits the German airlines with their greater resources and is a very serious detriment to Namibia's national airline,' says Air Namibia general manager Keith Petch. He claims the agreement allows both Lufthansa and LTU total dominance in the market, and says Air Namibia would now have to consider its position very carefully. Germany accounted for 14 per cent of the tourist market in 1991, a figure which is expected to rise in excess of 40 per cent by 2000.
More galling for the carrier, which receives no government support is that it expects the route to show its first ever profit this year. The European service is the only black spot on an otherwise profitable operation.
More galling for the carrier, which receives no government support is that it expects the route to show its first ever profit this year. The European service is the only black spot on an otherwise profitable operation.
Source: Airline Business
