Nationwide airlines deal for Ghana airways dead

[non sched]

The national carrier, Ghana Airways, is still flying through rough financial weather. Amidst reports that the airline could not pay salaries last week, the Minister of Roads and Transport yesterday announced that Ghanair had withdrawn from the joint venture partnership it sought to reach with Nationwide Airlines of South Africa which was unable to meet some requirements. This latest decision would only go to confirm what critics have argued all along, that Ghanair is becoming quite a problem child for the government.

Dr Richard Anane, Minister of Roads and Transport told a press conference in Accra that the government, in its quest to salvage the national Airline from near collapse initialed a non-committal memorandum of understanding with Nationwide to meet five requirements as a pre-condition for further negotiations.

However, the Board of Ghana Airways advised the ministry late last month that the business plan submitted by Nationwide did not meet the requirements.

The business plan was one of the five requirements, which the prospective joint venture partner was expected to prepare at its own cost to guide the venture.

The others required the partner to assist government establish a debt restructuring agreement with creditors and make available experienced managerial and technical services.

It was also to provide all the seed capital in the initial start-up phase and make available such aircraft and other equipment as required to operate the agreed service schedule.

Out of the five, Nationwide could not meet the requirement to provide all the seed capital for the initial start-up phase of the joint venture company and the assistance required for the government to put in place a debt restructuring agreement with creditors.

Dr Anane said Nationwide has been duly informed of the decision

[Rani]

..just another scrapped deal involving a West African carrier and a potential investor. Reminds me of Nigeria Airways / Airwing....
This signifies the need for goverments to take these processes more seriously before selecting investors.

Hani

[non sched]

The failure of Nigerian airlines and now Ghana airways makes a very good case for closing them down and allowing privately owned airlines to take their place. Of course it may not be possible politically.

[Rani]

What government officials need to do now is let go of their national egos and make way for smaller private airlines to operate freely in the region (full implementation of the Yamousoukro accord).

I remember to have read with fascination the pridction in the mid-90s that small national airlines will disappear due to increased competition from worldwide alliances. This did happen with the demise of Air Afrique, Zambia Airways and soon Ghana Airways, Air Namibia, etc.. Nigeria argualbly died in the mid 90s with nothing left to invest in.

Kenya Airways managed to be ahead of the game by partnering with KLM (they let go of their ego and accepted HELP to put their house in order). Now that is in order they can take over.

I still think there is room for a major player in West Africa and I think Lagos will be the natural hub. Let us wait and see where Obanasjo will go with this..

Rani

[non sched]

Rani

Did you know that a US airline is now providing service to Akkra, Luanda, Malabo, and Lagos?

[Rani]

Hi,

I know that World Airways of Atlanta, Georgia, is starting 2 weekly scheduled flights from Atlanta and New York to Lagos.
Is it the same to fly to other places you listed? I find it strange that Malabo is linked to the US directly, unless those flights operate in support of the oil industry in Equatorial Guinea.

Rani

[non sched]

Yes, it's World flying all those trips. The Malabo flights and the Luanda flights are for the oil industry. The Akkra and Lagos flights are for charter companies.

[Gunship]

The Minister for Roads and Transport Richard Winfred Anane has said Ghana Airways is gradually recovering from the problems that have bedeviled the national carrier for so many years.

Consequently, he said the Airline would be supported to run without foreign intervention for sometime before a decision is taken as to its future management.

Dr. Anane said this at a press briefing in Accra last Wednesday on the state of affairs of the Airline, which has been a subject of controversy in media circles.

"I am informed that the Airline which was losing one million United States dollars per month has since July been posting profits and has been able to reduce her debt obligations by US$20m," he said.

Ghana Airways debt profile at July 2002 stood at US$167 million and with the latest development; the debt profile now stands at US$ 147. :eek:

The Minister also said :eek:Ghana Airways' DC10 Aircraft which had been grounded for more than 15 months because of the Airline's inability to meet her part of contractual obligations has now been ferried to the UK for maintenance works.:eek:

"In light of the recent stabilisation of the company, the board has advised that the Airline should be re-positioned before further consideration for possible venture ships."

Dr Anane further said currently, a number of operational measures including the leasing of efficient aircraft to augment the existing fleet are being adopted.

Dr. Anane also announced the abrogation of a memorandum of understanding signed between Nationwide Airlines and the Ministry of Roads and Transport.

This he said stems from the fact that Nationwide Airlines which were entering into a joint ventureship with the national airline did not fulfill its obligations under the memorandum of understanding.

Recounting the events leading to the choice of Nationwide Airlines Dr. Anane said the government took a number of steps to restructure the Airline and bring back sanity into its operations.

The Aviation branch of Price WaterHouse Coopers was commissioned to carry out a diagnostic study and forensic audit.

"Tthe report recommended three options to salvage the airline consisting of Total Liquidation, Turn Around and Joint Ventureship," he said.

While the first two options would have obligated government to pay off the existing debt, the second option would in addition require re-capitalising the carrier.

"These options would have been too much for the government considering other competing priorities," Dr, Anane said, adding that the joint ventureship was selected to ensure the injection of private capital, management as well as operational efficiency.

Nationwide Airlines were to provide all the seed capital that may be required for a joint ventureship, prepare a business plan at their own cost, assist government to put in place a debt restructuring agreement, make available to the joint venture experienced managerial and technical services as well as provide such aircraft and other equipment as required to operate the agreed air service schedule as may be detailed in the business plan.

He said government has decided to withdraw from any relationship with Nationwide Airlines because the business plan presented and scrutinised by the board of Ghana Airways did not meet the requirements.

Ghana Airways has come under media spotlight in recent times for mismanagement, inefficiency and plans by government to privatize the national carrier.

[covertwar]

Excuse me, but where the hell is Akkra?

[4HolerPoler]

Akkra = Accra Made famous by thousands heard chanting Accra, Accra, Accra on 8879. To this day, it is said, Accra has never returned the plaintive calls of the supplicants.

Capital city of Ghana

Location: Western Africa, bordering the Gulf of Guinea, between Cote d'Ivoire and Togo

Geographic coordinates: 8 00 N, 2 00 W

Area:
total: 239,460 sq km
land: 230,940 sq km
water: 8,520 sq km
Area - comparative: slightly smaller than Oregon

Land boundaries:
total: 2,094 km
border countries: Burkina Faso 549 km, Cote d'Ivoire 668 km, Togo 877 km
Coastline: 539 km
Maritime claims: contiguous zone: 24 NM
territorial sea: 12 NM
continental shelf: 200 NM
exclusive economic zone: 200 NM

Climate: tropical; warm and comparatively dry along southeast coast; hot and humid in southwest; hot and dry in north

Terrain: mostly low plains with dissected plateau in south-central area

Elevation extremes: lowest point: Atlantic Ocean 0 m
highest point: Mount Afadjato 880 m

[Engineer]

Nice place Nice people Pity about the airline.

Interesting to note that a US interest has stated operating in the region, suggests that there is a profit to be made. Maybe why Nationwide are so interested in a stake in GH. Having seen Africans travel the profit in excess baggage is just one area where money can be made.