SA Airlink buys 40% of Air Namibia

SA AIRLINK will take a 40% share in Air Namibia's restructured operation, a move expected to take effect on July 1.
The announcement of the share approval comes from the Namibian government in the wake of its decision to partially privatise the airline, which has been running at an increasing loss. Its current debt figure stands at R1,4 billion.
At this stage Airlink's officials are staying mum on what the future holds in their deliberations with Namibia's financially troubled flag carrier.
Privately-owned Namibian aviation company Comav will acquire 15%, organised labour 10%, employees 10% and the state 25%. This means a total Namibian shareholding of 60%
The airline has found that its Boeing 747 used on the European route has proved to be a major cost factor. This is one area in which new arrangements will have to be made in any shareholding dealings, as neither Airlink nor Comav have aircraft capable of overseas flights.
Airlink's Embraer ERJ135 jets currently fly a regular service between Cape Town and Windhoek, but these aircraft have limited cargo space and confine themselves mainly to courier type packages. Comav is undertaking domestic flights at present, but again smaller aircraft are in use.
This leaves the existing SA Express and BA/Comair flights in and out of Namibia to serve cargo needs to and from South Africa, with the majority of overseas-bound cargo now being either flown into Johannesburg International Airport or road transported to the airport for transhipment purposes.