Air Namibia (Windhoek International) revealed in a statement dated December 18 that all litigation matters between it and the estate of defunct Belgian carrier Challengair (Brussels National) had been “amicably resolved”. The statement seen by ch-aviation said that a Deed of Settlement regarding all disputes, whether in Namibia or in Europe, had been executed.
Challengair began seizing funds belonging to Air Namibia in January, as it sought to fulfil European court rulings in its favour.
The statement said that “all attachment orders of Air Namibia assets issued in line with the German court directives are to be suspended per the Deed of Settlement entered into, which will enable Air Namibia to trade normally going forward.”
It added: “We extend our sincere appreciation and thanks to all parties including the Air Namibia-appointed legal team and the local representatives of Challengair for their meticulous efforts in resolving a very complex matter.”
Challengair was awarded EUR25 million euro (USD29 million) by courts in Paris (in 2011) and Munich (in 2015) as compensation for outstanding debts owed by Air Namibia for services such as maintenance, leasing dues, and insurance premiums that were part of a failed 1998 wet-lease agreement.
On January 4, 2019, Commerzbank in Germany seized approximately USD600,000 worth of funds from the state-owned carrier, then a further USD224,000 on January 21. By June, Air Namibia was experiencing severe cashflow problems as a result of the action.
In late July, the Namibian High Court ruled that Belgian lawyer Anicet Baum, who has represented the estate of Challengair, could represent the company in a Namibian court. Baum proceeded to institute legal action in the Namibian courts to officially recognise and enforce the award.
A letter penned at the end of August by Deidré Sauls-Deckenbrock, the airline's then-chairwoman, requested the country's government to provide NAD1.6 billion (USD109 million at the time) in emergency financial support, local media reported. She added that Air Namibia wanted to resolve its longstanding dispute with Challengair and requested that it seek settlement negotiations.
