The Namibia Airports Company (NAC) has not renewed a ground handling agreement with Air Namibia citing non-compliance to a number of clauses in the agreement, according to reports.
The agreement between Air Namibia and NAC, which initially expired towards the end of 2018, was for the provision of ground handling services at Hosea Kutako International Airport.
Air Namibia is reportedly having financial problems and has had to cut its route network to cope with cash pressures.
Reports claim that the agreement NAC had with Air Namibia expired on 31 October 2018, and NAC is issuing Air Namibia (Pty) Ltd with a six month notice effective from 1 June 2019 up until 30 November 2019.
According to a letter, reports say that NAC’s decision not to renew the contract comes from Air Namibia’s non-compliance with clauses four, 4.1, five and 10.2 of the agreement. Clause 4.1 deals with payment of a consideration fee which NAC said Air Namibia has not complied with.
The report also says that NAC will call for a national bidding process for ground handling services in due course.