Approaches by South Africa Airlines (SAA) to Ghana Airways to operate a joint-venture in the West Africa sub-region has fallen through due to the latter's' weak financial situation. The proposal, which was for 49 per cent equity participation by SAA, could not go ahead because of Ghanair's deplorable financial and non-competitive state.
A document titled "The state of the national airline," issued by Ghana Airways, said other airlines had also approached them with similar offers for alliances and commercial cooperation.
Ghanair said notwithstanding its weak financial position, "the current environment does not augur well for encouraging commercial cooperation and alliances with other carriers. "Therefore Ghana Airways will pursue the course of continuing to developregional operations, and intercontinental operations for that matter by itself."
It said management however, believed strongly that in view of the huge debt overhang, it would have to engage in a day-to-day fire fighting if the operational strategy and fleet remained the same.
The document noted that the national carrier could effectively exploit the benefits of the West African market with the necessary government support, adding that, " the strong desire of SAA and others to have a foothold in the West African market is a clear demonstration of its enormous potential."
Ghana Airways, it noted, could be effective and capture the sub-regional market when the acquisition of regional jets as proposed in the company's Fleet Renewal Strategy paper was implemented.
