Hilka Birns/CAPE TOWN

Lufthansa has confirmed that it is negotiating with TransNamib, the state holding company of Air Namibia, which is looking for an alliance partner in order to stem alleged serious financial loses on its intercontinental services.

"Talks have taken place. They were held in a positive spirit and are scheduled to continue," says the German airline. Lufthansa and TransNamib say it is premature to comment on the nature of the alliance. Industry sources suggest negotiations are likely to result in Lufthansa taking over Air Namibia's international routes, which include Windhoek to Frankfurt, Lisbon and London.

Lufthansa is Air Namibia's major competitor on the Windhoek-Frankfurt route ,having previously operated joint venture flights. Germany has strong colonial ties with Namibia and represents its biggest investor and tourist source.

Air Namibia management in Windhoek, meanwhile, is unclear about the talks and denies that the airline is facing financial difficulties, claiming that the carrier is on "-a sound footing and will continue to operate". TransNamib earlier issued a public warning on the future of the airline, stating that "-the financial position of Air Namibia is precarious, thus also seriously affecting the operations of TransNamib". It adds that Air Namibia has "no future as a standalone airline" and, as such, the TransNamib board has "-resolved to pursue alliance partnerships with other carriers".

The Namibian airline has codeshare agreements with LTU of Germany, TAAG Angola and Comair/British Airways. LTU says that a Lufthansa/Air Namibia partnership would mean the end of its codeshare arrangements.

Meanwhile, Air Namibia is also feeling threatened by a new joint venture between TransNamib and privately owned South African Airways feeder carrier, SA Airlink, claiming that it was not informed of the deal. SA Airlink will operate TransNamib's other airline Kalahari Express Airlines (KEA). TransNamib will have a 51% stake of KEA and SA Airlink 49%.

Source: Flight International