Business News of 2013-12-05

GCAA wins 2013 AFRAA service provider award

The Ghana Civil Aviation Authority (GCAA) has been awarded the 2013 African Airlines Association (AFRAA) Service Provider of the Year award at the 45th Annual General Meeting and Summit in Mombasa, Kenya.

A statement issued by the African Airlines Association (AFRAA) said the award is in recognition of GCAA’s effort in spearheading the reduction of the stabilisation margin in Jet Fuel Prices, resulting in a further reduction and stabilisation margin (cross subsidy) for fuel prices by 75%.

Aviation Turbine Kerosene (ATK) prices in Ghana were formerly among the highest in the world at about 25% more than the global average and 17% above the regional average.

The statement continued that after lobbying by airlines, the GCAA took up the issue with the Ghanaian Government -- which agreed to reduce the Stabilisation Margin (cross subsidy) by 75%, translating into a reduction of around 22 US cents per litre. The fuel prices in the country dropped by around 75 CAG, resulting in a savings of around 37.5 million USD a year for the airline industry.

“The efforts were multi-ministerial, led by the Ghana Civil Aviation Authority -- including Ministries of Energy and Transport and with support from the President of the country, which is highly appreciated. The airline industry appreciates the readiness of the Government of Ghana to listen to calls from the industry and respond positively with significant cost reduction, which will enhance the viability of African airlines,” it read.

Receiving the award, the Director General of the Ghana Civil Aviation Authority Air Cdre Kwame Mamphey applauded the Association for the honour done Ghana and the Authority, and assured industry players of his continued support to help grow the aviation industry in Africa -- adding “to achieve this, we have to work assiduously to prevent all bottlenecks that hold the industry back”.

The GCAA Director-General also applauded the contribution and hard work of the Ministry of Transport, National Petroleum Authority, Ghana Airports Company Limited, Board of Airlines and the Government of Ghana for the various roles played in bringing about the reduction of aviation fuel price.

He intimated that GCAA will continue to lead the crusade of air safety and liberalisation across the continent.