Ghana Airways faces last days?

After well over a year of uncertainty fuelled by the inaction of government, the air of mystery surrounding the fate of Ghana Airways started lifting last week. With no reasons given, the Management Task Force led by Captain Kofi Kwakwa was asked by the fractured Board of Directors to give way. Then, in a manner similar to the coup executed by Dr Wereko Brobbey at the Volta River Authority last year, Acting Chairman of the Board, Mr Panford Bray, stepped in a Chief Executive.

Informed sources on the unfolding Ghana Airways saga hint that Mr Bray may well be taking over to play a role akin to a liquidator of a failed corporate entity. According to sources, a Memorandum of Understanding initialed by the Minister of Roads and Transport Dr … and a three-man delegation from Nationwide Airlines of South Africa, consigned Ghana Airways to history. In its place a new airline is expected to emerge, jointly owned by Nationwide Airlines and the Government of Ghana. Under the deal facilitated by one Dr. Douglas Boateng, the new airline would not be encumbered by the liabilities of the ailing national carrier. Notwithstanding, Nationwide Airlines would hold majority stake and management control under the plan.

From its profile, however, Nationwide Airlines is essentially a domestic airline with operations limited to the South African region. Its aging fleet is made up largely of 737 and BAC 111 aircraft which cannot serve on Ghana Airways route network. Given these obvious handicaps, the MOU specified that arrangements be made to draft Virgin Airlines, the UK-based private airline owned by Richard Branson into the deal.

While it is heartening that government is finally doing something about the deplorable plight of Ghana’s aviation sector, analysts believe if the deal goes ahead, it would leave in its wake many casualties and leave the nation shortchanged on several fronts.

First, the image of both the airline and the country has been battered by the extended indecision, irregular and muddled dealings that breached some unspoken rules in the global aviation industry. For one thing, until Nationwide Airlines was brought into the picture by the Minister of Roads and Transport, all parties interested in Ghana Airways came to Ghana to hold negotiations. The goal post shifted when Nationwide came into the picture as Ghanaian officials rather started chasing after the South Africans, until the July 31 visit to Accra by three managers of Nationwide.

Again, whereas the continued employment of existing Ghana Airways staff was a cardinal consideration in earlier negotiations, there view is that only selected employees of the national carrier may be engaged in the new joint venture.

How the many local and foreign creditors of Ghana Airways would be settled also remains unclear.

Perhaps the most disturbing aspect of the Nationwide Airlines deal is the suspicion in some circles that it looks very much like a replica of an earlier joint venture proposal submitted to the airline last February. That proposal, which aimed to help Ghana Airways clear its indebtedness over a four-year period, was left to gather dust on the desk of the Minister of Roads and Transport.

Under that offer, Ghana Airways and Triaton, the offerer would create a joint-venture ‘SPV’ with the support of British Midlands Airline. The joint venture would dedicate 20%of its gross income towards repaying Ghana Airways. From the financial projections, this arrangement would have seen Ghana Airways offset its $160m debt.

The retirement of the management task force, which has struggled heroically to keep the airline airborne in face of daunting odds, was expected for sometime as reports indicated differences between the MTF, some members of the board and the Minister. Capt. Kwakwa and his team were said to have declared that on merit, the proposal by Triaton, which projected restoring Ghana Airways to a debt-free status over a four year period was the offer to beat – a view that was supported by the various unions of the airline but opposed by some pilots. Board Chairman, Sam Jonah, who sought decisive government action to tackle the indebtedness of the national airline without much success resigned in frustration, particularly when he allegedly found his position frequently undermined by other members of the board who were thought to be pursuing narrow interests.

On one occasion, Mr Jonah was reported to have curtly dismissed an attempt by a management firm to enter into a $20,000 a week transition management agreement with the airline, affirming confidence in the ability of the existing management to run the airline.

Perhaps the clearest indication of the levity with which the national airline has been treated is the fact that although the Ghana Airways Board was among the first to be constituted by President Kufour, it was never formally sworn into office.

According to Mr Bray, the future shape of Ghana Airways would be unveiled ‘in the next few days’. Until that happens, the many publics of Africa’s friendly airline would be sitting on edge and saying a prayer for the future of the aviation sector.