Business News of 2014-08-21

Gov't appoints PwC as advisors for new national airline

The Ministry of Transport, after a competitive tender process, has selected PricewaterhouseCoopers, an international consulting firm, as the transaction advisor for the establishment of a new national carrier.

PwC is expected to undertake various business studies to determine the viability, ownership structure, develop various models and evaluate bids for the establishment of the new flag carrier.

The process, which is expected to take 13 months, is being financed using part of a US$30million Public-Private Partnership Programme facility from the World Bank.

Transport Minister, Dzifa Attivor, said government is keen on establishing a new national carrier in line with its vision to make the country a hub in the sub-region.

Since the demise of Ghana Airways and the subsequent utter failure of Ghana International Airlines-- a joint venture between the government and other private investors -- the idea of a new national flag-carrier has been mooted by various government functionaries.

The erstwhile Ghana Airways was founded in 1958 and for decades was the national airline with the Kotoka International Airport (KIA) as it hub. However, the airline, ridden with debt, ceased operations in 2004. Attempts were made to revive its fortunes, but to no avail. In June 2005, the airline was liquidated.

Government with the support of private investors established the Ghana International Airlines (GIA). The airline faced difficulties and eventually suspended its operations in May 2010.

Source: B&FT
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