Wednesday, March 21, 2018

The Descent of Namibian Air


We all know the names of large airlines, mainly from the United States and Europe. However, we hardly ever hear the names of small airlines that only service local areas. One of these smaller airlines is Air Namibia, and it is on the path of a failing business.

One of the major problems with small airlines is that it is often difficult for them to compete with larger airlines with an established customer base and the ability to decrease the fare below the cost of the trip in order to outcompete other airlines. But this is only one of the problems faced by Air Namibia.

Unfortunately, Air Namibia has been plagued by corruption and embezzlement scandals. On top of that, there has been a clear lack of competent leadership in the upper echelons of the company. Because Air Namibia is government-owned, the airline is particularly susceptible to being used for money laundering or other corruption/embezzlement schemes. As a result, it has suffered setbacks in terms of revenue and competitiveness with other airlines.

The interesting part of this is that, because routes to Windhoek are so high in price, Air Namibia has real potential to become a successful airline by making prices competitive and focusing on routes to Windhoek. However, prices have been consistently too high to draw in adequate interest from customers, and inappropriate aircrafts have been purchased for the types of flights that Air Namibia offers.

It will be interesting to see where this goes. Perhaps in the future, flights to Namibia will be cheaper (something that we all can understand with our pocketbooks now).



~Scarlett

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