The airline is currently implementing its business plan, which was approved by the cabinet. There are reports of infighting between the board and the airline's managing director.
The fruits from the business plan initiatives and strategy implemented have started showing. We are now going for the third year and most of the planned initiatives which needed execution are already implemented. Most of our routes have grown from strength to strength, with revenue having increased, and operational results from the route profitability report having improved by a significant margin across the entire route network compared to previous year. We are still loss making but the losses have reduced significantly. The fleet modernisation project was successfull with the new fleet now in full operation.
On the implementation of the business plan, can you say Air Namibia is on track?
The airline business is a long term business. Decisions taken today take sometimes up to three years before results can show. Thus far we can comfortably give the airline a score of eight out of 10, considering that 80% of the main initiatives have been implemented successfully.
What are some of the major challenges that Air Namibia has encountered in the implementation of the business plan?
Business plans are normally based on assumptions about what the market will look like and what the market responce will be. From the Air Namibia experience, can you tell whether or not some of the recommended initiatives proved to be wrong and were aborted and cancelled, or were all assumptions positive and turned out to be ok, nothing was changed or cancelled?
Yes competitors reacted in one way or another when they saw what we were doing so that they protect their market share. The business plan had assumed a lot of flying (increased frequencies on some of the routes). The market or rather demand did not grow at the same pace in some of the instances so we had to cut down on some of the frequencies so that we match demand to capacity.
On some routes where we had to cut frequencies, demand has started picking up again and we also have responded by adding frequencies to increase capacity. The most notable routes referred to here where we recently increased frequency include
Other routes did not respond well so we had to suspend operations, for example
You recently cancelled the
Therefore, the route to
Are you going to continue flights to
Currently, we are experiencing a growth on these routes, and we are leaving passengers behind due to flights being full. So we will in the near future be increasing capacity on these routes, either by way of deploying larger aircraft or more flights per week.
Most Popular Stories
- Homeowners More Satisfied With Mortgage Servicers
- Discounts Help U.S. Auto Sales Sizzle in July
- Russia, Ukraine Now Face Off Over Football Clubs
- Colorado Issuing Immigrant Driver's Licenses
- Recruiting and Keeping the Perfect Employee
- MassMutual Teams Up With ALPFA
- Chrysler U.S. Sales in July Hit 9-Year High
- Fiat Looks Abroad After Chrysler Merger Vote
- Obama Vows to Veto House Immigration Bill
- Dow Wipes Out Gains for the Year: What Happens Now?