Air Namibia is to end flights into Ghana.

 

Ghana and tourism is important. Local officials in Ghana are alarmed about Air Namibia stopping service into the country as of the end of June.

This is not the first time the airline is making such a move.

Last year it made a similar move but later rescinded the decision to pull out but Ghana Citi Business News has learnt the decision may be permanent this time round.

This is the second time within two years a major airline is pulling out of Ghana.

Virgin Atlantic pulled out of Ghana in September last year due to high fuel costs in Ghana among others.

Both Air Namibia and the Transport ministry have remained tight lipped about the move.

But Citi Business News has gathered the pull out is due to economic and political challenges.

Persons familiar with the matter tell Citi Business News the airline which is wholly owned by the Namibian government was forced to pull out of the country because it could not keep up with operational costs.

The airline currently receives subsidies from the Namibian government for its operations but the Namibian government has been forced to cut down on the subsidies due to some economic challenges.

Air Namibia’s Windhoek-Accra route was first introduced into Ghana in November 2009 and has had to compete with South Africa airways.

Citi Business News has gathered competition from South Africa airlines which have more routes than air Namibia is also one of the major reasons for its slow growth.

South African Airways last year announced it will be increasing its operational routes and flights in Namibia with an application for five more flights a week.

According to aviation industry players the Windhoek – Accra route was only profitable during the month of December and failed to generate a positive turnover for the airline during the rest of the year.

Source: