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Business News of Tuesday, 10 June 2003

Source: Independent

''Special Purpose Vehicle'' Company To Run Ghanair

Barring any unforeseen disagreements between Government and England-based British Midlands International (BMI), a new company will soon be formed to take over the management of Ghana Airways.

The company, Fly Ghana Limited, which is described as a ‘Special Purpose Vehicle’ (SPV) company will be expected to last for a period of not less than three years and not more than five years.

The Government of Ghana, according to documents sighted by this paper is also expected to hold a ‘Golden Share’ in the new venture to ensure absolute control of the company.

Under the BMI proposals, Ghana Airways, for the period that Fly Ghana Limited will be in existence, will function as a separate entity during the transitional phase and will continue to provide an operational airline infrastructure, an Air Operator’s Certificate and its vested traffic rights as the designated national carrier of Ghana.

Eventually, Ghana Airways and Fly Ghana Limited will be integrated into a new company to be known as the ‘New Ghana Airways”

The BMI proposals, which can aptly be described as ‘sophisticated’ has been given the thumbs up by this paper’s pool of local and international aviation consultants.
In furtherance of this, BMI, according to information available to this paper has engaged Avon International Group, a London-based management consultancy as specialist consultants in the setting up and management of Fly Ghana Ltd. Documents in the possession of this paper after extensive transcontinental investigations over the weeks indicate that contrary to the bogus Nationwide offer for Ghana Airways which was rightly jettisoned by Government, the bmi offer represents a much more acceptable offer for the status of Ghana Airways.
London sources told this Reporter that the bmi offer is “irresistibly good” and may well turn out to be the best deal yet for cash-strapped Ghana Airways, which just last Friday held an open air ‘redemption’ service to seek the face of God to turn its fortunes round after years of corruption and mismanagement by almost every management that has run it.
The bmi proposal, which is based on fleet renewal, crew training, dealing with Ghana Airways’ debt, funding and finance, special purpose vehicle, Ghana Airways restructure and business development is said to be a harbinger of good things for the airline.
Under fleet renewal for example, BMI proposes that an “…Airbus A3330-200 will be deployed as soon as possible on the route from Accra to London/Heathrow. A second Airbus A330-200 will be deployed on the route from Accra to New York/JFK as soon as possible thereafter.”
Further, a Fokker F100 aircraft to be operated by BMI will be deployed on the regional network as soon as possible to provide profitable services to destinations on the East Coast, the West Coast and the Sahel. bmi also proposes to provide suitable aircraft to be deployed to operate a full range of domestic services within Ghana.
Ghana Airways DC-10 aircraft, according to the bmi proposal, which will be ‘displaced’ by the introduction of the A330-200 aircraft, will be redeployed to secondary international route-opportunities.
On the most important issue of Ghanair’s monumental debt, bmi proposes that Avon International Group will take immediate responsibility for presenting to key creditors of Ghana Airways a proposal for restructuring the airline’s debt
On funding and finance, BMI proposes that Fly Ghana Ltd. will arrange the funding required to sustain the introduction into service of the A-330-200 aircraft and the Fokker F100 aircraft to be operated.
The proposals, most parts of which this paper is keeping closely to its chest in the national interest also seeks to restructure Ghana Airways and will invariably lead to downsizing at the airline.
Investigations by this paper, which have been confirmed by sources close to BMI indicate that the proposals of BMI have been sent to Government and was recently submitted for Cabinet appraisal. Though our usual Osu Castle sources will not comment on whether Cabinet approval has been obtained, Ghana Airways sources told this Reporter that the offer of BMI is “something that Government can not afford to NEW COMPANY TO TAKE OVER GHANA AIRWAYS *Fly Ghana Ltd. is the name *Gov’t to hold Golden Shares By Egbert Faibille Jnr. Barring any unforeseen disagreements between Government and England-based British Midlands International (BMI), a new company will soon be formed to take over the management of Ghana Airways. The company, Fly Ghana Limited, which is described as a ‘Special Purpose Vehicle’ (SPV) company will be expected to last for a period of not less than three years and not more than five years.
The Government of Ghana, according to documents sighted by this paper is also expected to hold a ‘Golden Share’ in the new venture to ensure absolute control of the company.
Under the BMI proposals, Ghana Airways, for the period that Fly Ghana Limited will be in existence, will function as a separate entity during the transitional phase and will continue to provide an operational airline infrastructure, an Air Operator’s Certificate and its vested traffic rights as the designated national carrier of Ghana.
Eventually, Ghana Airways and Fly Ghana Limited will be integrated into a new company to be known as the ‘New Ghana Airways”
The BMI proposals, which can aptly be described as ‘sophisticated’ has been given the thumbs up by this paper’s pool of local and international aviation consultants.
In furtherance of this, BMI, according to information available to this paper has engaged Avon International Group, a London-based management consultancy as specialist consultants in the setting up and management of Fly Ghana Ltd. Documents in the possession of this paper after extensive transcontinental investigations over the weeks indicate that contrary to the bogus Nationwide offer for Ghana Airways which was rightly jettisoned by Government, the bmi offer represents a much more acceptable offer for the status of Ghana Airways.
London sources told this Reporter that the bmi offer is “irresistibly good” and may well turn out to be the best deal yet for cash-strapped Ghana Airways, which just last Friday held an open air ‘redemption’ service to seek the face of God to turn its fortunes round after years of corruption and mismanagement by almost every management that has run it.
The bmi proposal, which is based on fleet renewal, crew training, dealing with Ghana Airways’ debt, funding and finance, special purpose vehicle, Ghana Airways restructure and business development is said to be a harbinger of good things for the airline.
Under fleet renewal for example, BMI proposes that an “…Airbus A3330-200 will be deployed as soon as possible on the route from Accra to London/Heathrow. A second Airbus A330-200 will be deployed on the route from Accra to New York/JFK as soon as possible thereafter.”
Further, a Fokker F100 aircraft to be operated by BMI will be deployed on the regional network as soon as possible to provide profitable services to destinations on the East Coast, the West Coast and the Sahel. bmi also proposes to provide suitable aircraft to be deployed to operate a full range of domestic services within Ghana.
Ghana Airways DC-10 aircraft, according to the bmi proposal, which will be ‘displaced’ by the introduction of the A330-200 aircraft, will be redeployed to secondary international route-opportunities.
On the most important issue of Ghanair’s monumental debt, bmi proposes that Avon International Group will take immediate responsibility for presenting to key creditors of Ghana Airways a proposal for restructuring the airline’s debt
On funding and finance, BMI proposes that Fly Ghana Ltd. will arrange the funding required to sustain the introduction into service of the A-330-200 aircraft and the Fokker F100 aircraft to be operated.
The proposals, most parts of which this paper is keeping closely to its chest in the national interest also seeks to restructure Ghana Airways and will invariably lead to downsizing at the airline.
Investigations by this paper, which have been confirmed by sources close to BMI indicate that the proposals of BMI have been sent to Government and was recently submitted for Cabinet appraisal. Though our usual Osu Castle sources will not comment on whether Cabinet approval has been obtained, Ghana Airways sources told this Reporter that the offer of BMI is “something that Government can not afford to let go.”
The Independent is still reviewing the comments and opinions of our pool of aviation experts on the bmi proposals and will be updating our readers on other bits of the bmi proposals in coming issues.



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