Govt to act on Ghana Airways "Soon"

Government is studying proposals from a number of airlines and airline management consultants on the most suitable way forward for the national carrier, Ghana Airways.

In an interview with the Ghana News Agency (GNA) Business Desk in Accra, Mr Richard Anane, Minister of Roads and Transport did not mention the airlines but said proposals have come from very successfully managed airlines and highly regarded airline consultants with very "distinguished records of accomplishment".

"This is with the motive of securing the best deal for the airline", he said.

Investigations by the GNA came up with names including Lufthansa, British Airways, Kenya Airways, KLM and some American airlines and consultants among others.
Dr Anane explained that Ghana Airways as an entity must shed off its old attitudes and practices which has slowly but surely torn it apart.
"The staff and management must change their mindset, be more efficient and committed to developing a world class service for its numerous clients and capable of meeting the changing tastes and demands of the industry", the Minister said
Dr Anane was optimistic that Ghana Airways will bounce back to its pivotal role in national development, adding that, "government is keen on seeing the national carrier back in its former glory and even beyond matching any international standard."
He noted that most of the issues with the Ghanaair have been "misunderstood and deliberately misconstrued to the benefit of some people.
"The problem with Ghana Airways is fully appreciated by government but there are some in the system who wish things to remain as they were, and who put out deliberate misinformation on issues of the airline." Asked if the proposed collaboration with Nationwide of South Africa was over, Dr Anane said it does not look likely; especially when you consider the way they were treated.
He said Nationwide Airlines had one of the best deals for Ghana Airways, where the former was ready to pick up nearly the entire debt of the latter and then bring to bear strict and potent financial and managerial discipline on its operations.
Dr Anane expressed shock at the fact that many people took centre stage claiming immense knowledge on the Nationwide issue without recourse to then current substantive issues.
He said, "even the journalists and social commentators who took over the discussions and eventually pushed Nationwide out of Ghana, did not know the facts. They did not talk to me and my officials, the Ministry or anything of the sort".
I find it rather strange that those who took centre stage on the Nationwide issue failed to talk to me for my reaction. Not once; yet they claimed authority on what they were saying.
"Therefore what they said during the entire period was their own imagination as some of the documents they tendered in evidence were drafts of the intended action to be taken. As you are aware drafts could change or be modified to suit prevailing circumstances."
He said currently, Nationwide is the second best airline in Africa after South Africa Airways, "and all this happened sometime just after we kicked them out of this country. It has immense potential and we have lost this."
At a press conference early this year, the then Chairman of Ghana Airways, Dr Sam Jonah was blunt to wit: Ghana Airways is in dire straits and needed immediate help.
He noted then that as a country, Ghana could choose to provide immediate surgery or leave the airline to die.
Dr Jonah was not happy with the near virtual free trips and facilities enjoyed by staff, government officials and related bodies that did business with the Ghana Airways.
Ghana Airways has a very old fleet, he said. Captain Kofi Kwakwa the recent past Chief Executive of the airline, at a recent meeting complained severely about the ages of the aircraft, which are averaging 24 years.
Ghana Airways has four aircrafts- two DC-9's and two DC-10's. But two of the DC-9's have been grounded due to lack of funds to pay up technical repairs and the airline's inability to pay up its debt to borrowers.
At the beginning of the year it had a debt of 150 million dollars and have all its assets as collateral against huge debts incurred in previous years.
The debt to the airlines is made up of 90 million dollars in overdue suppliers credit and 60 million dollars in loans.
Senior officials of Ghana Airways say the only way forward of preventing bankruptcy was government intervention with the injection of funds.
However, industry players are of the view that the infusion of 80 million dollars will not solve the problem.
"Because the present operating strategy and equipment cannot generate enough income to pay recurrent expenditure and finance the remaining 70 million dollars''.
It is on record that Ghana Airways was early this year suspended from the clearing-house of the International Airline Transport Association (IATA).
Insiders say the airline has lost two-fifth of its passengers on its North America route due to events of September 11 in the United States and very stiff competition from bigger, better and more organized airlines
President John Agyekum Kufuor in his Sessional Address to Parliament in February said government was reviewing the Ghana Airways situation and will take a decision soon that will protect and enhance national interest.

Government is studying proposals from a number of airlines and airline management consultants on the most suitable way forward for the national carrier, Ghana Airways.

In an interview with the Ghana News Agency (GNA) Business Desk in Accra, Mr Richard Anane, Minister of Roads and Transport did not mention the airlines but said proposals have come from very successfully managed airlines and highly regarded airline consultants with very "distinguished records of accomplishment".

"This is with the motive of securing the best deal for the airline", he said.

Investigations by the GNA came up with names including Lufthansa, British Airways, Kenya Airways, KLM and some American airlines and consultants among others.
Dr Anane explained that Ghana Airways as an entity must shed off its old attitudes and practices which has slowly but surely torn it apart.
"The staff and management must change their mindset, be more efficient and committed to developing a world class service for its numerous clients and capable of meeting the changing tastes and demands of the industry", the Minister said
Dr Anane was optimistic that Ghana Airways will bounce back to its pivotal role in national development, adding that, "government is keen on seeing the national carrier back in its former glory and even beyond matching any international standard."
He noted that most of the issues with the Ghanaair have been "misunderstood and deliberately misconstrued to the benefit of some people.
"The problem with Ghana Airways is fully appreciated by government but there are some in the system who wish things to remain as they were, and who put out deliberate misinformation on issues of the airline." Asked if the proposed collaboration with Nationwide of South Africa was over, Dr Anane said it does not look likely; especially when you consider the way they were treated.
He said Nationwide Airlines had one of the best deals for Ghana Airways, where the former was ready to pick up nearly the entire debt of the latter and then bring to bear strict and potent financial and managerial discipline on its operations.
Dr Anane expressed shock at the fact that many people took centre stage claiming immense knowledge on the Nationwide issue without recourse to then current substantive issues.
He said, "even the journalists and social commentators who took over the discussions and eventually pushed Nationwide out of Ghana, did not know the facts. They did not talk to me and my officials, the Ministry or anything of the sort".
I find it rather strange that those who took centre stage on the Nationwide issue failed to talk to me for my reaction. Not once; yet they claimed authority on what they were saying.
"Therefore what they said during the entire period was their own imagination as some of the documents they tendered in evidence were drafts of the intended action to be taken. As you are aware drafts could change or be modified to suit prevailing circumstances."
He said currently, Nationwide is the second best airline in Africa after South Africa Airways, "and all this happened sometime just after we kicked them out of this country. It has immense potential and we have lost this."
At a press conference early this year, the then Chairman of Ghana Airways, Dr Sam Jonah was blunt to wit: Ghana Airways is in dire straits and needed immediate help.
He noted then that as a country, Ghana could choose to provide immediate surgery or leave the airline to die.
Dr Jonah was not happy with the near virtual free trips and facilities enjoyed by staff, government officials and related bodies that did business with the Ghana Airways.
Ghana Airways has a very old fleet, he said. Captain Kofi Kwakwa the recent past Chief Executive of the airline, at a recent meeting complained severely about the ages of the aircraft, which are averaging 24 years.
Ghana Airways has four aircrafts- two DC-9's and two DC-10's. But two of the DC-9's have been grounded due to lack of funds to pay up technical repairs and the airline's inability to pay up its debt to borrowers.
At the beginning of the year it had a debt of 150 million dollars and have all its assets as collateral against huge debts incurred in previous years.
The debt to the airlines is made up of 90 million dollars in overdue suppliers credit and 60 million dollars in loans.
Senior officials of Ghana Airways say the only way forward of preventing bankruptcy was government intervention with the injection of funds.
However, industry players are of the view that the infusion of 80 million dollars will not solve the problem.
"Because the present operating strategy and equipment cannot generate enough income to pay recurrent expenditure and finance the remaining 70 million dollars''.
It is on record that Ghana Airways was early this year suspended from the clearing-house of the International Airline Transport Association (IATA).
Insiders say the airline has lost two-fifth of its passengers on its North America route due to events of September 11 in the United States and very stiff competition from bigger, better and more organized airlines
President John Agyekum Kufuor in his Sessional Address to Parliament in February said government was reviewing the Ghana Airways situation and will take a decision soon that will protect and enhance national interest.