The Namibia Airports Company (NAC) can pay its debts.
Public Enterprises Minister, Leon Jooste told parliamentarians that this is despite the bleak global economy and low air traffic
Jooste was responding to questions by Popular Democratic Movement (PDM) parliamentarian Nico Smit on the insolvency of NAC.
He said as of 31 December 2020, NAC’s total assets were valued at N$2,7 billion0, and its current assets were N$253 million, whilst its obligations to third parties were only N$ 91 million.
Jooste said it is common that the revenue that has been generated by airport operators and other players in the aviation industry has been considerably diminished due to the COVID-19 pandemic’s devastating impact on the aviation and cognate economic sectors.
In most countries, airport operators have relied on government assistance as well as the use of existing reserves.
This, Jooste said, unfortunately, is the same situation with NAC as over the past year NAC has utilised its existing reserves as well as some assistance from the government to fund its operational and capital expenditure obligations.
Jooste added that the fact that airlines such as Ethiopian Airways and Eurowings have resumed passenger services and the Turkish Airline commenced cargo operations, while others have increased the frequency and expanded their operations, means that NAC’s financial position is exponentially improving, commensurate with the increased aircraft movements.
He said non-aeronautical revenue generated from retail activities at NAC airports is also expected to correspondingly increase in light of increased passenger numbers, which will enable NAC to collect more revenue to buffer its reserves, thereby continuing to be a going concern, as has always been the case.