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Business News of Wednesday, 11 October 2023

Source: aviationghana.com

Ashanti Airlines struggles to get 'Ghana Airlines' flying - Report

Ghana has been without a national airline since 2010 Ghana has been without a national airline since 2010

More than a year after winning the bid to partner with the Government of Ghana (GoG) in establishing a new home-based carrier for Ghana, Ashanti Airlines, and its financial partner, Zotus Group, are yet to show any significant progress in actualising the project.

After missed take-off dates in 2022, the government gave assurances that the airline, christened Ghana Airlines, would start selling tickets in April and May 2023 and commence commercial flights by June-July, 2023.

Ashanti Airlines, which at the time of bid perusal had an Air Carrier License (ACL) and was not a full-fledged airline yet, won the bid ahead of Ethiopian Airlines, EgyptAir, and JNH Group—a company with a group net worth of over $1.5billion but was yet to acquire an Air Carrier License (ACL) and Air Operator’s Certificate (AOC).

Despite Ashanti’s initial verve in going through the process to acquire an AOC from the aviation sector regulator, the Ghana Civil Aviation Authority (GCAA), the company has trailed the process for months, stretching back to last year, a reliable source with knowledge of the matter told Aviationghana.com.

With barely 14 months to the end of the tenure of the Nana Akufo-Addo-led government, there is now a desperate search for an answer to a nearly seven-year-old quest for a new flag carrier.

Kwame Governs Agbodza, the Minority Chief Whip and Member of Parliament for Adaklu Constituency in the Volta Region feels vindicated: “When it was awarded to Ashanti Airlines, I warned them that this will not succeed because they lack the expertise. Running an airline is not like buying and parking an expensive car in your house.”

Ghana has been without a national airline since the collapse of Ghana International Airlines in 2010, following the demise of Ghana Airways in 2004. Successive governments since 2010 have tried and failed using various modalities to establish a new flag carrier.

Given the country’s image, considered one of the stable democracies, and business-friendly countries on the continent, and in a region ravaged by military takeovers and unrest, the call for potential partners for this enterprise has drawn interest from the very best over the past decade.

Lufthansa, Qatar Airways, Ethiopian Airlines, EgyptAir, Airbus, Boeing, South Africa Airways, Embraer, and others have at one point or another shown interest in partnering GoG for the project.

Ethiopian Airlines, which will from October 29, 2023, become the largest international carrier servicing Accra’s Kotoka International Airport with 14 flights per week, may yet offer a mutually beneficial answer to Ghana’s quest for a new flag carrier.

Mr. Lemma Gudeta, the Chief Commercial Officer of Ethiopian Airlines, speaking with AviationGhana.com in Accra, Ghana revealed that his outfit will be open to discussing the project again if the Government of Ghana invites them back to the discussion table.

“Yes, we used to engage with the Government of Ghana for the establishment of a national carrier here. We participated in a bid and we were one of the companies shortlisted to go for further discussion. There were issues that happened in between, but Ethiopian Airlines feels that it is our national obligation as an African carrier to support any start-up national carriers in Africa.

Therefore, whenever the Ghanaian government is ready, and if they believe that Ethiopian Airlines can make a difference, we will be more than happy to assist, because it’s not about business or commercial venture. It is all about making Africa self-sufficient in air transport, therefore it is strongly our obligation, and we will be more than happy to be part of the journey that the Ghanaian government is going to do in establishing the national carrier.”

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Watch the latest edition of BizHeadlines below



Click here to start the nomination process for the 2023 GhanaWeb Excellence Awards