WINDHOEK; Air Namibia says it has started paying its outstanding fuel bill with Engen Namibia in weekly installments since mid-January this year.
Local media reports last month said Air Namibia was unable to settle its fuel bill, which stood at N.dollars 60 million, with the fuel company.
Air Namibia’s Managing Director, Theo Namases told local English daily The Namibian last month 40 per cent of the airline’s revenue goes towards fuel.
The N.dollars 60 million has been outstanding since November last year.
“We are paying our service provider, Engen Namibia, on a weekly basis until we finish the outstanding amount,” Air Namibia’s Head of Corporate Communications, Paul Nakawa told Nampa on Monday.
Nakawa, who did not want to divulge the amount the national airline is paying on a weekly basis, said Air Namibia is planning on paying off its bill so that operations can continue as normal.
He said stop-overs in Luanda, Angola for fuel which started towards the end of December 2012, is still ongoing for flights from the Hosea Kutako International Airport to Frankfurt, Germany.
Nakawa also refuted an allegation that Air Namibia is planning on cancelling the stop-overs to Luanda for fuel refills this month due to an alleged outstanding bill they have to settle with their service provider in Angola.
Air Namibia recently announced reduced flights to Frankfurt for a period of six months.
This arrangement would be in place from 27 January to 24 June.
The measure was necessitated because the lease agreement for the two Airbus aircrafts used for the Windhoek-Frankfurt route expires towards the middle of the year.
The Airbus A340-300 will be replaced by a brand new Airbus A330-200, which is expected to enter Air Namibia’s fleet from October 2013.
In March last year, Air Namibia received a mammoth bailout of N.dollars 500 million from Government, bringing their total bailout since the turn of the century to approximately N.dollars 3.5 billion.
In 2011, Government pumped in N.dollars 60 million into Air Namibia so it can meet its lease obligations and pay its fuel bills, for which the airline was expected to use N.dollars 318 million for fuel.