Airlink buys 40% of Fly Namibia
Namibia's growing economy is increasingly dependent on air connectivity for the movement of people and goods. Since the demise of Air Namibia in 2021, the private carrier Fly Namibia has emerged as the leading player in the local market. To accelerate its growth, it wants to rely on the experience of Airlink, the leading airline in Southern Africa, which is backed by an all-Embraer fleet of some 50 aircraft.
Airlink, the South African private airline, is acquiring a strategic 40% stake in the private company FlyNamibia, based in Windhoek. The information is contained in a joint press release made public on Wednesday 28 September 2022.
The equity investment "will accelerate Namibia's post-pandemic recovery and stimulate the expansion of efficient scheduled flights to, from and within Namibia," the same source said, stressing that the deal is "aligned with the economic development objectives set out in Namibia's Harambee II Prosperity Plan for 2021-2025.
"Namibia is unique, not only in its natural, mineral and human wealth, but also in its relatively small population compared to the size of its territory. With this in mind, we will be well positioned to achieve economies of scale to make it economically feasible to connect and serve Namibia's smaller towns with Windhoek and other regional destinations, while providing convenient and easy access to other markets around the world. It will also support our joint ambition to establish Hosea Kutako International Airport as a central hub and connecting base. In doing so, we will contribute to making travel and air transport more efficient and strengthen Namibia's competitive position as a business and tourism destination," explained Airlink's Managing Director, Rodger Foster.
The market value of the transaction was not disclosed. The new joint venture comes with a commercial franchise agreement under which FlyNamibia will adopt Airlink's IATA code "4Z" for its ticket sales and scheduled flights, while retaining its corporate identity, brand and colors. Airlink will also provide additional flight operations, technical and business skills training and development support for FlyNamibia.
"Namibia's economy is expanding and has the potential to grow rapidly with new offshore drilling and mining, the resurgence of tourism and its establishment as a pioneering producer of green hydrogen for the global energy market. To realize its full economic potential, Namibia will increasingly depend on air connectivity to move people and goods between markets. By partnering with Airlink and becoming part of its global network, we will be even better able to serve foreign and local tourists and businesses. In addition, we will build capacity, develop aviation skills and create direct and indirect employment opportunities," said FlyNamibia's new CEO, Andre Compion. Airlink and FlyNamibia will optimize their schedules to provide the most convenient connections between each other's flights and those of long-haul intercontinental flights provided by Airlink's other 20 or so major global airline business partners.
From its Johannesburg hub, Airlink, established in 1992, serves Windhoek up to four times a day and Walvis Bay daily. From Cape Town, Airlink offers up to three daily flights to Windhoek and a daily round-trip service to Walvis Bay. Overall, the South African carrier serves more than 45 destinations in 13 countries across southern Africa, Madagascar and St. Helena, with an all-Embraer fleet.
A subsidiary of Westair Aviation, FlyNamibia began scheduled passenger services in June 2019. From Windhoek's Eros Airport, it serves three domestic routes ( Ondangwa, Rundu and Katima Mulilo). Its only regional route, leads to Cape Town in South Africa, served six times a week from Hosea Kutako International Airport.
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