Air Namibia has been forced to curtail its domestic and regional flight schedule as a result of an ongoing lawsuit with a defunct Belgium airline, Challenge Air, who is suing the African carrier for approximately US$27 million, over a dispute relating to a sublease agreement from 1998.

Due to funds frozen in banks in Europe, Air Namibia is suffering a temporary liquidity problem, which is now affecting its operations. The carrier cannot service its routes fully as aircraft are stuck in maintenance due to lack of funds to pay the MROs.

Air Namibia's serviceable A319 fleet was reduced to one aircraft, with three still in maintenance awaiting funds to clear the aircraft. One A319 is in South Africa undergoing maintenance, one is in Cyprus awaiting its return, and the other A319 is awaiting maintenance in Namibia.

Further cuts to its network may be necessary if another aircraft is grounded.