Namibia
This article was added by the user . TheWorldNews is not responsible for the content of the platform.

Airports company reports revenue growth

The Namibia Airports Company (NAC) revenue shot up to N$192 million in the 2021/22 financial year, the company’s chief executive officer, Bisey /Uirab, said.

This comes after NCA recorded a decline in revenue from N$420,7 million in 2019/2020 to N$76 million in 2020/21.

Speaking at the NAC annual general meeting last week, /Uirab said the decline in revenue is attributed to the impact of the Covid-19 pandemic.

“The previous three financial years reflect the gradual return to normal operations after the restrictions imposed by the Covid-19 pandemic,” /Uirab said.

He attributed the organisation’s significant results to the implementation of high principles of good corporate governance.

“In response, management undertook a very deliberate cost-containment exercise, which saw the operating costs of the company being reduced considerably to respond to the available cash flow,” he said.

According to /Uirab, once the decline in passenger traffic was arrested, improvement in volumes both in passengers and flight operations were recorded.

“The traffic volumes for the financial year 2021/2022, however, only recovered to 37% of pre-Covid traffic,” /Uirab added.

However, the traffic has continued to improve in subsequent reporting to around 63% of pre-Covid-19 traffic.

“I am happy to state that as at 31 March 2023, passenger volumes stood at 73% of pre-Covid-19 volumes, a great improvement from the dark days of the pandemic,” /Uirab said.

Speaking at the same event, works and transport minster John Mutorwa said the reports NAC presented provide a realistic reflection of the transitional journey of the company.

“They represent visible and concrete improvements in leadership, management and governance,” Mutorwa said.

NAC board chairperson Leake Hangala said the company has made significant progress in stabilising the company’s operations, currently operating at about 78% of pre-Covid-19 level.

Ministry of Finance and Public Enterprises executive director Titus Ndove said the ministry acknowledges and applauds NAC for its improved performance in financial operations, leadership, governance and compliance.

“It is commendable to see a state-owned enterprise endeavour to ensure growth while being compliant to legislation,” Ndove said.

Ndove said: “As the shareholder, we are in support of the presented strategic initiatives and will continue to support NAC to mobilise the necessary resources for the successful implementation of infrastructural improvements at its various airports.

CAPITAL PROJECTS

/Uirab said NAC completed the Hosea Kutako congestion alleviation project in the 2021/2022 financial year, which he said is showing positive results of alleviating the congestion challenges in the terminal building.

The project cost NAC N$18 million.

“It is designed to handle passenger movements up to 2030,” he said.

Another project completed is the emergency maintenance work on the runway and taxiway at Eros Airport.

“Infrastructure development in the immediate future will be focused on refurbishing Andimba Toivo ya Toivi taxiway and the construction of a new fire station, as well as the Katima Mulilo Airport runway rehabilitation,” /Uirab said.

Other projects are the apron expansion at Hosea Kutako International Airport at a cost of N$100 million, funded by the government over a two-year period.

NAC spokesperson Dan Kamati said the company is committed to improving airport infrastructure to support government national development initiatives and harness the natural resources brought about by the recent oil and gas discoveries together with the green hydrogen initiatives.