My main airline is based in Cape Town and have recently started a subsidiary based in Windhoek (Namibia) why on Earth do I not have the passenger rights for domestic flights within Namibia, if the subsidiary is based in the capital?? I suspect this is due to restricted market access. So, in that case, a country like Angola or Tanzania would work.
I'd greatly appreciate any help in understanding this.
Your subsidiary inherits the traffic rights from your mother company. Unless you open up shop in a investment open country (see the link below) you cannot fly domestic in other countries.
You have already leased the planes, you have hired crew, new seats etc. And you have to pay for it. Hence it makes more sense to restart also the holding.