Chamwe Kaira
FlyNamibia says about 67% of its operating costs are price-driven and remain outside its control.
The airline said it is effectively a price taker on key inputs such as fuel and other charges.
The response follows public concern over ticket prices for flights to Ondangwa.
On Wednesday, works and transport minister Veikko Nekundi said he has given the airline six months to reduce fares.
He said a flight to Ondangwa costs more than N$9 000, while a flight to Cape Town is about half that price.
Nekundi warned that the government may step in and regulate ticket prices if fares are not reduced. He said he is prepared to amend the law and introduce price controls similar to those used in the taxi sector.
FlyNamibia said ticket prices are driven by supply and demand.
“As demand for seats increases, the cost per passenger can decrease, creating an opportunity for lower fares over time. In this context, FlyNamibia has been actively engaging the government to take up more seats and support the airline in this regard, as increased demand will help bring ticket prices down.”
The airline said fuel is one of its biggest costs. At Eros and Ondangwa, there is only one fuel supplier, which limits price competition.
It said fuel prices have increased in the past month and are influenced by global factors, including the ongoing conflict in the Middle East.
FlyNamibia said ticket prices also include levies, taxes and regulatory charges.
The airline said it remains committed to lowering fares but must manage costs it cannot control.
FlyNamibia said it operates without government subsidies and relies on its own funding.
It said it contributes to government revenue through taxes and fees and supports more than 500 jobs.
The airline also said it continues to invest in local skills through training programmes for pilots, engineers and graduates, as well as bursaries and staff development.
