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Borrowing for Daily Living and Executive Jets

Tue, 8 Apr 2008 Source: Prof Lungu

“…Accountant-General, Mr. Christian Tetteh-Sottie has categorically stated that Government has not made any payment…with the proposal to acquire two Presidential Jets – Airbus 319 ER and its support aircraft, the Falcon 900 – as is being alleged by some leaders of the…NDC…and media practitioners. The ruling…NPP…recently put before Parliament, for approval the proposal to buy the said aircraft as part of the programme to refurbish the Ghana Air Force fleet…The existing fleet which is made up of seven planes that were acquired in the mid-seventies would be grounded on technical grounds by 2010…” (Ghanaweb, 27 March 2008).

“….Accra, March 27, GNA- Government has committed over 12 million dollars to charter a plane to fly home about 50 stranded Ghanaians who travelled to Barbados last month in search of greener pastures…Dr Charles Brempong-Yeboah, Deputy Minister of Foreign Affairs.,.disclosed this to the Ghana News Agency…”

Haba! Ground seven Ghana Air Force fleet planes in the same year on “technical grounds” and replace with two executive jets by 2010?

Goes without saying the recent debate and decision by Ghana’s Parliament to acquire those aircrafts for Ghana’s chief executives, soccer players, and the Ghana Air Force “Communications Squadron” made very interesting reading and reflection. It made interesting reading because Ms. Mercy Adede Bolus earlier this year wrote a piece titled “Is Kotoka International Airport welcoming to its customers? (Ghanaweb, 2008-01-05). Many insightful questions were raised in that piece. That piece in my mind defined the context for problem definition and solutions for the entire Ghanaian Airport, Tourism, and air logistic troubles.

Therefore, it came as a shock to me reading all the pronouncements about the $35-plus million dollars being proposed for aircraft without any apparent strategic plan for Ghana’s airports and associated tourism industry. Then the $12 million! Seems to me a developing nation like Ghana would need cargo aircraft and helicopters, more than executive jets. We did some cursory checking, but first!!

In keeping with the Ghanaweb tradition of asking question, how is the value of seven aircraft featured in the asset capitalization or will they be worth zero dollars when it is time to dispose of them? And why dispose of seven 1970-era aircraft at the same time? Is it so painless for the all the people? And what is our Dr Charles Brempong-Yeboah smoking to propose spending $12 million dollars (or even $250,000) to essentially fund the deportation of 50 individuals who have all the time in the world, individuals who are not being transported to/from the moon? And if the figure is wrong why have we not heard from Dr Charles Brempong-Yeboah since publication of the story? $12 million? Goodness. Even a fool can establish an entire airline with $12 million!

Haba Ghana! Why these seeming deluded decisions now that we are approaching change of government? And what monumental misplacement of priority for Mr. K.T. Hammond, MP for Adansi Asokwa to say that the aircraft will be the best legacy of the Kufour administration. Really, Mr. K.T. Hammond, for equipment that have a life span of 20 years, assuming you have qualified maintainers all that time? And is the Minister for Defense, Albert Kan Dapaah, serious when he says that “the purchase of the aircraft would not hinder other governmental programmes.” Really, how is that possible when you are borrowing left, right and center for all these things, from China to France? We did some checking, as we said. We discovered that Dassault Aviation SA, the French contractor, is not in the cargo aircraft business at all. In fact, the biggest Falcon aircraft they produce has a maximum capacity of 8 passengers and a maximum take-off weight of 69,000 lbs. The Airbus 319, on the other hand, carries only 142 passengers.

So the question is why buy such inflexible aircraft? And why bother training three sets of operators, pilots, repairers, and maintainers? Specifically, what are the cost benefits and operational benefits with three different aircraft frames? And how do you move even 500 troops or 1000 flood-ravaged citizens to safety from the center, north, south, east, west, with a 142-passenger aircraft? And where will the aircraft land when you are buying capital assets without improvements to your runways and airport facilities?

Haba, Ghana!!

What probably ought to be troubling to Ghanaians and Ghana supporters is that the invoice sent to Parliament was reported to be an extract, not the real McCoy. Then they said the aircraft was for the Air Force “Communication Squadron.” In that case, why would a “Communications Squadron” located in a country traversable in day in a truck require executive aircrafts instead of switches, transformers, antennas, telephones, fiber-optic cables, LAN lines, monitors, radios, trucks, and more trucks, and helicopters, etc.

Revelation! We’ve been reminded by many other people that the current NPP government, while in opposition, cried foul when the previous government ordered one solitary aircraft for the sitting executive. So what has changed other than who is in government. Ghana is still borrowing and begging like crazy for a tall list local/national needs that keep growing by the day? Or can we now say that the $30-plus million in executive jets will end up creating and “maximising opportunities” for Ghana’s airports and associated tourism industry the way Ms. Bolus and others might want?

Can anyone bet on that?

Take the specific case of the airport at Accra where we presume the executive jets will be parked and maintained. As far as I know, the only improvements at that International Airport, the sole airport of its nature in Ghana, is the improvement in procedures for travelers in/out processing. Comparing 2004 to a recent visit to Ghana, Ann reported interfacing with “Employees (who) were very polite and helpful…things went quickly and smoothly with the exception of having to sit in the hot and uncomfortable hall for two hours before boarding the plane to leave.” Prof Lungu was in Ghana April of 2006 and can attest to the same. Therefore, we can conclude that while there has been significant improvement and efficiency in personnel attitudes and procedures, the airport’s infrastructure and facilities are now up to par?

How on earth does an “International” airport located near the Equator at a location with ample rainfall (40–60 inches of rain annually) survive without water to flush toilets and without air condition to cool “World” travelers and “Tourists”? But now we are talking about jets for executives even as we are borrowing billions of dollars!

ITEM: Prof Lungu was in Honolulu, Hawaii, (20–30 inches of rain annually) on business during the debate on the aircraft purchase and made some comparisons with Honolulu International Airport. If I remember correctly, there is currently no cultivated greens or gardens at the airport in Accra and there are no more than 3 restaurants. Clearly, that is a far cry from a world class hub, precisely the sort of capital and infrastructure Ghana’s leaders should be focusing on. So, let the following photographs from Honolulu (notice that the airport is not named after any American national hero of worse, coup plotter) show you the Accra International Airport potential.

Enjoy and reflect on the 9 photos from Honolulu, Hawaii, USA, if Ghanaweb agrees!

Some parting shots:

“…Why is the Accra International Airport named after a coup plotter and military dictator when many brand names will fall over themselves for their names to be associated with that airport and will actually pay to have that privilege? Raise some money to endow Accra Airport. Change the name. Call it Accra Airport, then find someone or a company that wants to sponsor their name (for a limited time – say 10-15 years) to that airport. Use that money fix some of the major facility systems/problems, develop a Master Plan for that Airport, even…create an airport garden…” (Prof Lungu, 17 March 2008).

PS- Since returning to Japan, it’s been reported that Aloha Airlines has filed for bankruptcy and may have aircraft for sale. Mind you Aloha Airlines is out of business not because of the quality or capacity of their aircrafts. It all has to do with market competition and failing to make the right decisions when it counts.

Prof Lungu
Tokyo, Japan 1 April 2008


Views expressed by the author(s) do not necessarily reflect those of GhanaHomePage.

Columnist: Prof Lungu