AFGO monopoly under threat

African Ground Operations Company Limited’s monopoly over the handling of cargo goods at the country’s airport will soon be a thing of the past with a decision to allow Ghana Airways to undertake handling of cargo.

The move to allow the embattled national airline to handle cargo will go a long way to improve its finances. The Minister of Roads and Transport, Dr Richard Anane said the airline’s re-entry into the handling of cargo will not only dine unilaterally.

He said Ghana Airways will negotiate with AFGO, the industry’s sole cargo handlers. Aviations analysts believe that the monopoly granted to AFOG by the NDC government contributed greatly to the woes of the national carrier, as it took away a big chunk from its guaranteed income base.

Dr Anane who was briefing journalists in Accra said which ever measures taken to salvage the ailing airline must be sustainable. Ghana Airways, which has been earmarked for joint-ventureship, has been described as potentially viable. “The airline has a role to play in the socio-economic development of the country amongst others,” the Minister emphasised.

According to Dr Anane, the joint-ventureship option was selected to ensure the injection of private capital, management, expertise and operational efficiency. “In actualising our choice of joint ventureship we took into consideration the need for a prospective partner to assist us to achieve our vision of creating a sub-regional hub.

The airline would help us achieve the country’s Gateway Initiative that seeks to make Ghana a trade and investment gateway to the ECOWAS sub-region.” However, he regretted that the deal struck with the controversial South African airline, Nationwide Airlines could not be sustained because of anomalies identified in the business plan submitted by the company.