The national carrier, Ghana Airways requires about $120 million capital injection to implement a new strategy, which will make it more profitable. The airline is currently reeling under a financial crisis with a debt of $150 million compared with its total asset value of about $50 million. But even, all these assets serve as collateral for some of its loans. The once proud and profitable flagship of Ghana with enviable fleet can now boast of only 5 airplanes, which break down every now and then.
Pressently only three of the planes are in good condition. Many observers have have suggested part to outright sale of the airline while others say the best option is re-capitalisation. Others believe that no investor will put his money in an airline like Ghana Airways. But President Kufuor has given hope to the airline.
In his state of the nation address, he admitted to the weak state of the airline but said government will take a firm decision on it. “Years of reckless mismanagement have left the airline in a most precarious state. Anytime a Ghana Airways plane flies, even when fully booked, it makes losses and runs the risk of the plane being seized by one or other of its creditors.
Nevertheless, Ghana Airways remains a national asset with great, great potential for success, and indeed it is a source of pride for many of us. Government is therefore reviewing the situation and will soon take a decision that will protect and enhance the national interest.”
