New national airline likely to fail – Transactional Advisors

Read Article

Comments (21)

This article is closed for comments.

Read Comments Comments (21)

Asempa 11 years ago

My mind is made up against forming this national airline. This article clearly shows such a decision is unwise and probably the usual create and loot tricks this government is constantly engaged in. It is possible it is all a ...
read full comment

My mind is made up against forming this national airline. This article clearly shows such a decision is unwise and probably the usual create and loot tricks this government is constantly engaged in. It is possible it is all a sham just to spent money and then shelf the project later. mahama why do you make stupid decisions like this? Are you and your ministers able to understand what you read at all? Common sense should tell you that this is not worth risking the already limited funds of the citizens of Ghana. You motherfuckers!
Kwaku Gbloenawo 11 years ago

If the Deputy Minister of Transport knows her job, nobody should tell her that it is impossible to start operating an airline from feasibility in December to flights in March. This is not a political game, it is serious bus ...
read full comment

If the Deputy Minister of Transport knows her job, nobody should tell her that it is impossible to start operating an airline from feasibility in December to flights in March. This is not a political game, it is serious business and Mahama should set her as an example.
Isaac Kusi, Bx. NY. 11 years ago

Do not let others distract you about your possibilities. Ghana can operate a very profitable airline if all the loopholes are plugged. All the airlines in the US are making huge profits. United Airlines made over $1billion in ...
read full comment

Do not let others distract you about your possibilities. Ghana can operate a very profitable airline if all the loopholes are plugged. All the airlines in the US are making huge profits. United Airlines made over $1billion in the 3rd quarter alone. The charge for extra legroom, food on board domestic routes, $25 for domestic baggage and a whole lot of services. Ghana Airlines can do the same. Dwell on the positives and solve the problems that will drain your profits. They should not give tickets to parliamentarians. United Airlines does not accept cash payments for any service. Anybody that makes a payment at the airport must use a credit card or debit card issued through kiosks at the airport. The baggage policy is enforced through the computerized system. If you are allowed two suitcases at 70lbs each and you are over by 2 lbs, you must either remove two pounds or pay the excess else a bag tag will not be printed for you. That means your bag is not going on the flight.
Ghana Airways operated a profitable Catering unit as well as servicing and maintenance unit that serviced other airlines. It can happen. The naysayers are just afraid of loosing the market once Ghana starts operating her own airline. Yes we can!!
DusTY-FooT-pHiloSophER 11 years ago

Well said, mate.

Well said, mate.
One Man Thousand 11 years ago

This article is the voice of companies who feel threatened by Ghana airways. Even if the profit is 0.1% a lot of money will accrue to the state. The balance sheet of the country will improve tremendously. At least GhC2 bil ...
read full comment

This article is the voice of companies who feel threatened by Ghana airways. Even if the profit is 0.1% a lot of money will accrue to the state. The balance sheet of the country will improve tremendously. At least GhC2 billion will flow to the bottom line if Ghana enforces reciprocal/bilateral flight between nations.
Alex London 11 years ago

The PwC report did state the financial projections of the proposed project were optimistic. Which means that the projections can be revised to a more realistic level.
It does not indicate the venture was not profitable

The PwC report did state the financial projections of the proposed project were optimistic. Which means that the projections can be revised to a more realistic level.
It does not indicate the venture was not profitable
GH Can 11 years ago

I am at a loss here. Is it the case that the pwc report says the venture is unprofitable or that industry operators are raising doubts about the projections in the report. The headline seems to suggest otherwise.

I am at a loss here. Is it the case that the pwc report says the venture is unprofitable or that industry operators are raising doubts about the projections in the report. The headline seems to suggest otherwise.
Fed up 11 years ago

Portends: is a sign or warning that (something, especially something momentous or calamitous) is likely to happen.
Harangued: lectured (someone) at length in an aggressive and critical manner.
So you are saying that experts ...
read full comment

Portends: is a sign or warning that (something, especially something momentous or calamitous) is likely to happen.
Harangued: lectured (someone) at length in an aggressive and critical manner.
So you are saying that experts have lectured the initial pre-feasibility report at length in an aggressive and critical manner. You are also saying that the project implementation report is a sign or warning that the grants of licence, certification and registration would in themselves be momentous or calamitous events that are likely to happen.
the first usage is just absurd; the second only slightly less so. Don't use a thesaurus to find big words in an attempt to make yourself appear clever because when you misuse the words you appear the opposite!
KB 11 years ago

Oyiwa!!!!!!
You don't need to be financial expert to know that it won't just work. We can't even run Metro Mass, STC Intercity efficiently let alone an industry which is so competitive and very risky.
Any intended investmen ...
read full comment

Oyiwa!!!!!!
You don't need to be financial expert to know that it won't just work. We can't even run Metro Mass, STC Intercity efficiently let alone an industry which is so competitive and very risky.
Any intended investments should be directed towards developing the railway sector.
ASARE 11 years ago

NPP SOLD GH. AIRWAYS PROPERTIES.

NPP SOLD GH. AIRWAYS PROPERTIES.

Peaceful Foreigner 11 years ago

If this airline is to be run by Ghanaians with their lack of management and business skills and their inferiority complexes vis a vis white skin and Ghanaian politicians then it will and should fail. If it is run by individu ...
read full comment

If this airline is to be run by Ghanaians with their lack of management and business skills and their inferiority complexes vis a vis white skin and Ghanaian politicians then it will and should fail. If it is run by individuals who have sucessfully ran other airlines and have highly recommended business experience then it will be successful.

One thing it will not fail because of a lack of patronage by Ghana nationals. As i am always astounded at the way the African passenger tolerates utter nonsense of a service.
MENSAH 11 years ago

WHY SHOUL GOVT BE BOTHERED WITH A PROFIT MARGIN OF 10% OF A BUSINESS WHILE ITS OWN TREASURY BILL RATE IS DOUBLE THE PROFIT MARGIN.ADMINISTRATIVE AND OPERATIONAL BOTTLENECK CAN,T BE IGNORED.GOVT SHOULD PLS. CONCETRATE ON MASS ...
read full comment

WHY SHOUL GOVT BE BOTHERED WITH A PROFIT MARGIN OF 10% OF A BUSINESS WHILE ITS OWN TREASURY BILL RATE IS DOUBLE THE PROFIT MARGIN.ADMINISTRATIVE AND OPERATIONAL BOTTLENECK CAN,T BE IGNORED.GOVT SHOULD PLS. CONCETRATE ON MASS TRANSPORT SYSTEM THEY PROMISED . IT WILL ELEVIATE POVERTY AND SCORE THEM SOME POLITICAL POINTS.AN AIRLINE IN THE NAME GOVT WILL JUST BE OPENING ANOTHER PUZLE OF CREATE ,LOOT AND KEEP.LET US STOP THIS CRAZY IDEA .
Ibn Batuta 11 years ago

Everybody now has an opinion no matter how flawed....this is good for the country.

Everybody now has an opinion no matter how flawed....this is good for the country.
a Ghanaian 11 years ago

there you have it, the numbers don't add up and everything presented by your transport ministry is false. let me start by saying I am a pilot, so save me the "you don't know what you talking about" crap. a national airline fo ...
read full comment

there you have it, the numbers don't add up and everything presented by your transport ministry is false. let me start by saying I am a pilot, so save me the "you don't know what you talking about" crap. a national airline for Ghana at this time is the worst thing that can happen. your infrastructure is incapable of handling your air traffic. kotoka airport was built by Nkrumah to handle about 1000 people a year. in 2013, Ghana has 1.3 million passengers come through that airport.
secondly, there's a reason why alitalia and air france have both begun filing for bankruptcy, it because national airlines are to serve the people and mostly rely on government subsidies to stay afloat, should the government face economic hardships like what is facing the current government, those subsidies are lost and those airlines tank. after europe experienced the financial collapse, those national airlines have tanked.the ghana economy is not strong enough to give subsidies to an airline, so the airline is doomed to fail right out of the gate.
third point is competition, the new airline will go up against DELTA for the Accra-USA route. British Airways for the Accra-London route and Emirates for the Accra- Rest of the World route, can anybody on this form tell me with confidence that this new national airline can compete with these 3 industry titans. and no you can't tell them to stop operating in the country because they will block you from operating in their country.why have all these small airlines (fly504) and some major airlines like Swiss and virgin atlantic pulled out of Ghana?? your answer is competition, Delta can cut ticket prices and profits in order to make other competitors give up and we definitely don't want to take on Emirates in a ticket bidding war cuz we will lose.
fourth point is cost of jet A which is the fuel used by jet airplanes. an airlines biggest cost is fuel, the most successful airlines have means of keeping their fuel cost low, an example is Emirates, they have their own refinery that provides the airline with jet fuel. unfortunately, the tema oil refinery isn't capable of refining Jet A so the government would have to buy from other refining companies such as shell. so if the new airline can't keep their fuel cost at a low, it will fail.
there is the issue of management and type of aircraft that will be used.
i have many more reasons why this national airline at this moment is the worst idea ever, but i don't want to bore you guys.
puncho 11 years ago

nice insight

nice insight
kojo P77 11 years ago

Thank you pilot to give a clear view on the issue of new national airline for Ghana. There is another problem. Kotoka airport does not have enough space to house those airplanes. There is far more issues that need to be solve ...
read full comment

Thank you pilot to give a clear view on the issue of new national airline for Ghana. There is another problem. Kotoka airport does not have enough space to house those airplanes. There is far more issues that need to be solve in the country, such as infrastructure, electricity, watersupply et cetera. The gouvernement need to solve those issues before facing the aviation industry. I'm thanksfull for your given insight.
KKK 10 years ago

Very insightful...well said mr pilot...well done!

Very insightful...well said mr pilot...well done!
Ghfuo: Be Bad & Hang Nyantakyi, NOW! 10 years ago

I respect your suggestions but ask yourself whether we can solve them?
1. Ghana may have competition in generating revenue from these specified routes. Yes. But we can still make a profit longterm. What are these other airl ...
read full comment

I respect your suggestions but ask yourself whether we can solve them?
1. Ghana may have competition in generating revenue from these specified routes. Yes. But we can still make a profit longterm. What are these other airlines like klm, airlknes in asia etc doing to attract revenues?
2. Our major investment will be in retooling the refinery to produce jet A gas to fuel the airline, and rehabilitate our existing airport. This will require looking at alternative ways of raising cash, attracting investors and revenues and most importantly bringing the right management personnel on board to manage and direct the affairs of this national airline. Look at south African airlines? What can we learn from their business model? It takes the right people do big things. I'M POSSIBLE!(impossible)
emmanueljeobell 11 years ago

i wan travil to us/uk

i wan travil to us/uk
Mike frm Ho. 11 years ago

Oh is this not what the deputy minister was talking about as if she was reading to us on radio. Talkatives. Fluent speaking cannot amount to delivery. Shame NDC TALKATIVES.

Oh is this not what the deputy minister was talking about as if she was reading to us on radio. Talkatives. Fluent speaking cannot amount to delivery. Shame NDC TALKATIVES.

joe Navajo 11 years ago

I will be glad if fail. Another create and loot scheme.

I will be glad if fail. Another create and loot scheme.

21 Comments

Welcome,

SIGN IN

Welcome,

RESET PASSWORD

Hello,

Terms and conditions

REGISTER

New national airline likely to fail – Transactional Advisors

Read Comments .st0{display:none;fill:#14BDD3;} .st1{display:none;} .st2{display:inline;fill:#FC0F0F;} .st3{display:inline;fill:#FFFFFF;} .st4{display:inline;fill:none;stroke:#000000;stroke-width:6;stroke-miterlimit:10;} Comments (21)

Read Comments Comments (21)