Sunday , March 7 2021

Why Ghana needs a national airline

Business News Monday, November 12, 2018



Airline Airways PolThe new airline will replace the national airline (Gana Airways), which collapsed

In Africa, air transport supports 6.8 million jobs each year and $ 72.5 billion in continental GDP. Statistics show that the airline is growing in Africa as more and more countries purchase their national air carriers.

At the end of 2017, the European Aeronautical Defense and Space Company Airbus received 261 orders from African countries for its aircraft with 28 new operators, complementing existing ones.

As the world's largest population, experts say air transport in Africa will increase significantly from 1.2 billion in 2016 to 1.68 billion by 2030.

Industry experts say that tourism in Africa in the next 15 years will increase significantly from 52 million in 2012 to 134 million in 2030 and is expected to grow by 10 to 40 years, which is why African countries should pay attention to the aviation industry.

The main influence of the national airline on GDP and jobs in Africa

Already some African countries have gained huge benefits from National Airlines.

In 2014, Zambia increased export growth by $ 14 million in 2014, while Ethiopia exports more than $ 154 million in 2014, while Kenya increased by $ 326 million in the same year.

These three countries provided more jobs than mining, which in 2016 exceeded $ 225 million, in 2017 – $ 820 million in 2017.

Significantly damaging benefits were generated by the rapid growth of air transport in these three countries.

There are also several other African countries, including Ethiopia, Zambia, Togo, Seychelles, Mauritius and Côte d'Ivoire, which benefit greatly from the aviation sector.

Togo national airline

For example, Togo has grown more than tripled – from 50,000 in 1995 to 350,000 in 2015, since the establishment of the Togo State Airline.

Air Côte d'Ivoire

Just five years after the establishment of air quality, a tourist trip to Côte d'Ivoire has doubled from 800,000 in 1990 to 220 million in 2017.

Air Mauritius

Tourism has a direct impact on Mauritius's economy, thanks to its national airline, at 45 500, which is 8.2% of the total employment rate, with 135 000 jobs in the same year.

Air Seychelles

The story of Seychelles is no different.

Of the 95,235 people alone, 22.0% of Seychelles' GDP is derived from the tourism industry.

This is because the state has invested national airlines that translated jobs and employed 29 thousand hospitality industry.

Air Namibia

Another striking example in Africa is the air Namibia.

In the period from 2015 to 2016, Air Namibia reported its operations at a profit of $ 3.5 million and paid a salary of $ 21 million.

The airline also contributed 55 million dollars in indirect investment to the supply chain due to airline purchases.

The sad story of Ghana's national airline

After the national airline collapsed in 2010, Ghana did not have a national carrier.

Free boarding passes, mismanagement and government intervention in operations were among a number of other factors that were said to have resulted from the collapse of the so-called Ghana airways.

After postponing the introduction of several new national airlines, many believe that time is the time Ghana considers the aviation industry, as it is at the heart of economic growth.

So far, there are two deadlines for restoring what is now called the local carrier.

First in 2015 and 2016. These promises have not yet been fulfilled

Although the current government claims that it has committed itself to rebuilding the national airline.

The Ghana Civil Aviation Administration (GCAA) has announced that a new national airline, which is expected to start before 2019, will not receive a free ticket regime that was used extensively by government officials, which resulted in the suspension of Gana Airways and its successor Ghana International Airlines .

Recent parliamentary assurances that the Aviation Ministry and the Ghana airport company have set up a new home-based carrier have reports that airline diversity, including Etiopian Airlines, Air Mauritius and African World Airline, is currently negotiating with the government on the establishment of a national airline.

Speaking of JoyBusiness in Toulouse, Girma Wake, Chief Executive Officer of Ethiopian Airlines, said in Ghana that Ghana should try to abolish Ethiopia in an attempt to re-start the home carrier.

He added that Ethiopian air was a success story in Africa, because its leadership lacked government intervention.

"It does not matter to me who owns the airline. The Ethiopian airline has 100% government, but the government has allowed the airline to operate on commercial bases. Complete an independent authority to manage the airline. If they did what many African carriers are doing in all situations, Ethiopia the airline will not be where it is today.

The African countries should be able to say that it is good, here is our airline, here is our seed money, and we have set up an airline so that we can properly manage our work. I'm sure it can be done. Many European carriers were in government ownership of the government for 20 years. They gradually came to this private matter. Africa is not yet ready to complete a private airline. We need government involvement in our airlines. The government can encourage the airline to do what they want, but not as an intervention, but to develop and do it. "

However, Raphael Kuuchi, vice president of the African International Air Transport Association, does not support government rates at national airlines.
"Ethiopia is a different case, they have a business model that works very professionally without state intervention. It is very difficult and tempting for governments to refrain from interference in aviation. We want to see if the government limits its involvement in aviation.

We do not talk that governments should be hands-on, ultimately the government has the task of creating a policy environment and rules, so we need the government, but not the airline's operation, but sector policy and regulatory aspects. What I want to see in Ghana is that if a government wants to be involved in a national carrier, it should have a minimum and not control the participation and allow the private sector to manage it. "

From 2017, when there are about 385 million people in West Africa, there are huge opportunities for the aviation industry.

The latest Airbus global market forecast of 2017-2036, entitled Growing Horizons, suggests that more than half of the world's tourists travel internationally each year through air travel.

Ghana Aviation Industry

Over the past decade, the Ghana aviation industry has grown by about 8 percent a year.

In 2017, the total number of international passengers, both on arrival and on departure, was 1.8 million, mainly from Europe, North America and Asia.

The main international and regional airlines currently operating in Accra are Air France, Emirates, British Airways, Turkish Airlines, Brussels Delta, Ethiopia, South African Airways, Air Namibia African World Airlines, etc.

Several African countries, including Ethiopia, Zambia, Togo and Kenya, are involved in the aviation sector, making a significant contribution to their economies.

Experts say that if Ghana really wants to see a rapid economy, special attention should be paid to the aviation industry.

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