Ghana Airways is Recovering - Minister

The Minister for Roads and Transport Richard Winfred Anane has said Ghana Airways is gradually recovering from the problems that have bedeviled the national carrier for so many years.

Consequently, he said the Airline would be supported to run without foreign intervention for sometime before a decision is taken as to its future management.

Dr. Anane said this at a press briefing in Accra last Wednesday on the state of affairs of the Airline, which has been a subject of controversy in media circles.

"I am informed that the Airline which was losing one million United States dollars per month has since July been posting profits and has been able to reduce her debt obligations by US$20m," he said.

Ghana Airways debt profile at July 2002 stood at US$167 million and with the latest development; the debt profile now stands at US$ 147.

The Minister also said Ghana Airways' DC10 Aircraft which had been grounded for more than 15 months because of the Airline's inability to meet her part of contractual obligations has now been ferried to the UK for maintenance works.

"In light of the recent stabilisation of the company, the board has advised that the Airline should be re-positioned before further consideration for possible venture ships."

Dr Anane further said currently, a number of operational measures including the leasing of efficient aircraft to augment the existing fleet are being adopted.

Dr. Anane also announced the abrogation of a memorandum of understanding signed between Nationwide Airlines and the Ministry of Roads and Transport.

This he said stems from the fact that Nationwide Airlines which were entering into a joint ventureship with the national airline did not fulfill its obligations under the memorandum of understanding.

Recounting the events leading to the choice of Nationwide Airlines Dr. Anane said the government took a number of steps to restructure the Airline and bring back sanity into its operations.

The Aviation branch of Price WaterHouse Coopers was commissioned to carry out a diagnostic study and forensic audit.

"Tthe report recommended three options to salvage the airline consisting of Total Liquidation, Turn Around and Joint Ventureship," he said.

While the first two options would have obligated government to pay off the existing debt, the second option would in addition require re-capitalising the carrier.

"These options would have been too much for the government considering other competing priorities," Dr, Anane said, adding that the joint ventureship was selected to ensure the injection of private capital, management as well as operational efficiency.

Nationwide Airlines were to provide all the seed capital that may be required for a joint ventureship, prepare a business plan at their own cost, assist government to put in place a debt restructuring agreement, make available to the joint venture experienced managerial and technical services as well as provide such aircraft and other equipment as required to operate the agreed air service schedule as may be detailed in the business plan.

He said government has decided to withdraw from any relationship with Nationwide Airlines because the business plan presented and scrutinised by the board of Ghana Airways did not meet the requirements.

Ghana Airways has come under media spotlight in recent times for mismanagement, inefficiency and plans by government to privatize the national carrier.