GIA now in serious trouble
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GIA now in serious trouble
Following the new government decision to withdraw $1.5m monthly pocket money, will GIA be the next? This article on GhanaWeb may point the way.
Unless the current operators of Ghana International Airline (GIA) raise some external credit to support its operations, the Airline may have to wind up its operations.
This follows a decision by the government to withdraw a 1.5 million dollar monthly subsidy it has supported the Airline with since its inception.
GIA has constantly been running at a loss and now the government says it cannot continue to pour money into an endless pit.
The government has been studying a report of the Transaction Advisors, Fidelity Bank which suggests the Airline is bound to be grounded.
After four years of operation, GIA does not have an Air Operator’s Certificate. It has no aircraft of its own.
GIA has been operating a charter service based on permit from Ghana Civil Aviation Authority. Flights are operated by Astreaus Airlines, a UK Service at a cost level that will forever make it difficult and impossible for GIA to even break even.
The Minister of Information, Zita Okaikoi told Citi News that the NDC government has given adequate notice to the operators of its decision to withdraw the 1.5 Million dollar subsidy.
She said the government is exploring other ways to keep the airline flying; one option is a private Public Partnership.
“GIA is a loss making entity so we are rather going to encourage private partners to come in to form a National Airline…we are looking at a situation where we have private business people coming in to run the airline.” She said.
Meanwhile, the Minority Share Holder, GIA USA says it is unperturbed about the latest development.
Its law suit against the government over its 30 % shares still lingers on at the International Court of Justice and that whether the government withdraws subsidies or not the case, according to Sammy Crabbe, will go ahead.
The Lead Minority Shareholder for GIA USA, Sammy Crabbe told Citi News that Ghana will eventually be the loser if it goes ahead to run GIA down.
“If anything at all, our claims will even go higher if they should run down the company because they took over the company and run it down so it doesn’t hurt us in anyway. What is does is, it hurts Ghana” He said
This follows a decision by the government to withdraw a 1.5 million dollar monthly subsidy it has supported the Airline with since its inception.
GIA has constantly been running at a loss and now the government says it cannot continue to pour money into an endless pit.
The government has been studying a report of the Transaction Advisors, Fidelity Bank which suggests the Airline is bound to be grounded.
After four years of operation, GIA does not have an Air Operator’s Certificate. It has no aircraft of its own.
GIA has been operating a charter service based on permit from Ghana Civil Aviation Authority. Flights are operated by Astreaus Airlines, a UK Service at a cost level that will forever make it difficult and impossible for GIA to even break even.
The Minister of Information, Zita Okaikoi told Citi News that the NDC government has given adequate notice to the operators of its decision to withdraw the 1.5 Million dollar subsidy.
She said the government is exploring other ways to keep the airline flying; one option is a private Public Partnership.
“GIA is a loss making entity so we are rather going to encourage private partners to come in to form a National Airline…we are looking at a situation where we have private business people coming in to run the airline.” She said.
Meanwhile, the Minority Share Holder, GIA USA says it is unperturbed about the latest development.
Its law suit against the government over its 30 % shares still lingers on at the International Court of Justice and that whether the government withdraws subsidies or not the case, according to Sammy Crabbe, will go ahead.
The Lead Minority Shareholder for GIA USA, Sammy Crabbe told Citi News that Ghana will eventually be the loser if it goes ahead to run GIA down.
“If anything at all, our claims will even go higher if they should run down the company because they took over the company and run it down so it doesn’t hurt us in anyway. What is does is, it hurts Ghana” He said
