No decision on Ghana Airways yet

THE Government is yet to take a firm decision on the status of Ghana Airways. ?No decision has been taken on whether to settle on a joint-ventureship with any company, liquidate the airline or consider its turn-around, ?it said.

The Minister of Roads and Transport, Dr Richard Anane, said this at a news conference in Accra yesterday, He said the government entered into negotiations with eight companies which expressed interest in the airline and explained that no decision has been arrived at as to which of the companies will go into partnership with the government in running the airline which has a total debt of about $170 million.

The minister named the companies as T&E Aviation from Lebanon, Traiton from Switzerland, The Execujet Airline from South Africa and SA Airlink also from South Africa.

The rest are The Africa Global with Traiton and British Midland Airline (bmi) and lately, The Africa Global with bmi (without Traiton), The Nationwide Airline, South Africa and Africa One Airline.

He said Alitalia, Continental of the USA and South Africa Airlines were contracted but there were no fruitful yields.

Dr Anane said British Airways did not show any interest at all in the ailing airline which has a debt far bigger than its total assets.

He said apart from Nationwide Airlines which met government?s criteria and vision for a sub-regional hub, it has not taken a decision on which of these companies will join it in owning the distressed airline.

On the criteria, Dr Anane said any prospective partner was expected to have or must be able to access, aircraft of acceptable standards, provide acceptable under-wing and over-wing service standards (full maintenance) and also have the capacity to train staff, particularly cockpit and cabin crew to acceptable international standards.

He said the partner should also be able to have a reputable customer-service orientation and most of all, be traceable.

Dr Anane indicated that, Nationwide Airline which was able to meet the criteria is a regional airline.

He said Nationwide Airline for instance carries more than 600,000 passengers per year, operates 700 flights per month and also posted a double digit year on year growth in the last five years.

Dr Anane noted that Nationwide Airline has an average annual passenger growth of 20 per cent, a Boeing approved maintenance facility that can maintain aircraft from A-D and has a licensed training facility of international standards for in-flight operations and indeed, currently trains for other airlines.

He said the airline a has a fleet of 22 aircraft and added two in 2001 and another four this year.

Dr Anane indicated that, no credible offer has ever been made to pay off the indebtedness of Ghana Airways adding that ?any group which touched on the indebtedness did so after interaction with our negotiating team and learnt about our concerns.?

The minister said Ghana Airways with its negative image and indebtedness can not be placed on the stock exchange and with its countless creditors, a divestiture could not be achieved without impinging negatively on their sensibilities.

He gave the assurance that immediately after a report on the forensic audit of the airline, is completed, it will be made public.

Dr Anane said government recognises that the national airline is the pride of the nation and based on this recognition, it has not permitted the national carrier to die in spite of the huge indebtedness that it has been and continuous to be saddled with.

Answering questions from journalists on whether any of the companies showed interest to pay off the debt of the airline, he replied in the negative and said ?it is most unrealistic to expect prospective partners to pay-off our indebtedness. It will be near puerile to expect it to happen in the corporate world.?

He made it clear that ?our vision is to create a sub-regional hub and therefore, consummate the gateway initiative.?