Monday 14 June 2021
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Air Namibia loses court battle against Challenge Air

By Staff Reporter

Air Namibia was dealt a double blow after months, if not decades of stalling its recognition of the Munich court judgement against Challenge Air.
Air Namibia and Challenge Air parted ways after Air Namibia agreed in March 1998 to lease a 351 seater plane from Challenge Air which was subsequently cancelled because the aircraft was believed to be defective.
Challenge Air pounced back and hauled Air Namibia in front of the German courts in an attempt to recover 400 million Namibian dollars or 25million Euros. This verdict was reached in the Munich Regional Appeals Court in 2015.
In November 2018, Challenge Air attached all commissions payable to Air Namibia, ticket sales income via AviaReps in Germany. In January 2019 alone,  Air Namibia paid in excess of N $3,2 million to Challenge Air.
Also during the month of November, Air Namibia was informed of the seizure of assets belonging to the company and its sister company Trans Namib Holdings. These two companies were deemed to be “liable for attachment and execution”.
In a confidential email leaked to The Patriot, Air Namibia’s legal firm in Europe advises members of the board and the Executive to engage Namibian lawyer Sisa Namandje who acts as Challenge Air lawyer, with a view to reach “a positive agreement”. Dumez states further that “negotiations with Namandje do not remove the risk of an execution of the award in Namibia.
Only a complete arrangement will grant this”.
Dumez, in the same note reiterated the threat of trouble via Trans Namib but only in the event if an agreement is not reached with Air Namibia.

One single payment
Challenge Air in negotiation with Air Namibia indicated the preference for a single payment rather than instalments. This is expected against a backdrop of the “limited financial resources “ on the side of Air Namibia.
Air Namibia is also further notified of a threat of “seizure at IATA” which is currently being prepared in Canada.
Exact details were scanty at the time of going to press as to what this seizure entails.

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