Ghana Airways - 1400 staff but no aircraft!

[Yak97]

NO AIRCRAFT FOR GHANAIR AFTER JULY 17
The fortune of Ghana Airways are set to take a dive for the worst following a revelation that the airline will be without any of its own aircraft after July 17.

The only operating aircraft of the airline at the moment, the DC-10 9G ANB is to go out of operation on July 17 for maintenance work in Italy.

When THE INDEPENDENT visited the white Avenue offices of Ghana Airways in Accra last Monday, most officials of the airline, aware of the consequences of the development to the airline’s finances preferred to remain tight lipped on the matter.

Philip Owusu, CEO of the airline, was also out of the office ostensibly attending a meeting.

Some Ghanair staff who spoke to THE INDEPENDENT on anonymity however preferred that the situation is not published with the reason that passengers and clients who have purchased tickets for flights after July 17 will flood the airline with demands for refunds of their monies.

The situation is so dire that many staff of the airline are throwing their hands in despair with the fear that this may yet be the beginning of the end for the airline.

In the meantime, three of the airlines other aircraft are also “impounded” in Italy following the failure of the airline to pay for maintenance cost.


Source: THE INDEPENDENT

[Yak97]

These articles are long but make an interesting read

Ghana Airways Trouble

The debate as to what to do with the beleaguered national airline, Ghana Airways (Ghanair), rages on. To sell or not to sell, is the question facing the country in a HIPC situation?

Chronicle's investigations into the problems of the airline has revealed that Ghana Airways pays about $300,000 a week to Airbus to lease an aircraft for it's North American operations.

Ghana Airways owes its creditors about $146 million, having paid $20 million last year. Ghanair is also said to owe Alitalia $22 million and the latter is demanding a cash payment of $5 million before the two DC 10 aircraft (9G-ANA and 9GANC) belonging to Ghanair that was seized in Italy would be released. Meanwhile the DC10 9G-ANB, which is the only operating aircraft, would be sent to Italy on July 17 for maintenance works and might also be impounded by Alitalia.

The Chronicle has been sampling views on the issues and can report that the former Minister of Roads and Transport, Mr. Edward Salia, has said that liquidation of Ghana Airways should be the last resort after all other strategies like restructuring and divestiture had failed. "Although Ghanair owes debtors about $146 million, I believe there are other ways to solve the problems without resorting to liquidation," he explained.

He said supporters of liquidation should also look at the situation from a nationalistic point of view because Ghanair serves as the pride of the nation. "Although some African countries are without a national, airline it does not connote that Ghana should follow suit. The liquidation of Ghanair depends solely on the decision by the government of the day," he added.

Mr. Salia suggested that the government should either look for a strategic investor to take over or put more money into the airline to make the debt bearable. He also called for attitudinal change of the staff and management of Ghanair for the better.

The public relations manager of Ghanair, Mr. Bruce Bannerman, maintained that liquidation of the airline would not solve the problems of the company. He said he shared the opinion that the airline would be viable when a strategic investor takes over the management aspect of the company.

Some aviation experts however suggest that the government should not continue to pump money into the distressed airline because even neighbouring oil-rich Nigeria has allowed her airline to be liquidated.

They said that the state cannot afford to spend $900,000 a week for Ghana Airways leases for three aircraft ($3.6 million a month). The airline now operates its North America, Europe and the West Coast of Africa routes by leased aircraft.

The experts explained that the liquidation of the airline should be considered, based on the fact that liquidity threats by debtors of the company had increased and the depletion of the company's fleet and other assets is on the ascendancy. They noted that the fleet of aircraft the company is operating is old and fuel-consuming.

The experts who wanted to remain anonymous stated that when Air Afrique was engulfed with about $260 million debt, the airline was liquidated and that "the same must be done to Ghana Airways".

The experts expressed grave concern about the way management had locked up their own ground handling equipment while they paid $200,000 a month to AFGO for the same, thereby losing lots of money.

Speaking on divine intervention and how it would work, the new chief executive officer of the airline, Mr. Philip Owusu, said on an Accra FM station, JOY FM, that he still believes God would answer their prayers although the going seems to be tough.

He noted that sometimes operating a leased aircraft is cheaper. But Mr. Kwame Osei Prempeh thinks otherwise because in the aviation industry, the seriousness of the top management, middle management and the staff is what would make a difference. Heaven help those who help themselves.

In the case of Nigeria, Mr. Gerry Gana, the information minister announced in May that the debt profile, liquidation threats by debtors, the depletion of its fleet and other assets had forced the government to liquidate the Nigeria Airways.

It had been revealed that Nigeria Airways was laden with a $60 million debt and had already laid off about 1,000 of its staff in the period leading to the liquidation.

Things moved from the frying pan into the fire for the Nigerian airline when it tried desperately to claw back its customers. Passengers bound for London and New York were stranded at the Murtala Mohamed Airport, in Lagos, for weeks due to lack of
aircraft.

Relating the Nigerian experience to that of Ghana Airways, the experts concluded that Ghana Airways should have been liquidated a long time ago for a new company to be formed.

Meanwhile unconfirmed reports indicate that the talks between the government and British Midland International to take over the management of Ghana Airways have broken down.

Chronicle gathered that there were disagreements over who would take over the huge debt of the airline. The inauguration of the new board, which was to take place last two weeks, was called off.

Should the general public look forward for a liquidated airline or a new vibrant one?

Source: Ghanaian Chronicle


Feature Article of Wednesday, 16 July 2003

The Ghana Airways BMI Hybrid Deal

Managers of Ghana Airways and BMI are negotiating a strategic deal aimed at providing Ghana with a new national airline to be called New Ghana Airways. Although the current ongoing deal remains shrouded in secrecy and propaganda as being the most effective and only solution to the ailing national airlines problems, it is clear several strategic considerations are being sidestepped to maintain a national airline. Even if this deal succeeds in keeping Ghana Airways operational the real litmus test would be an evaluation of a deal desperately orchestrated to keep the national airline from crash landing and its impact on Ghana’s aviation sector and economy at large.
Ghana Airway remains one of the few operational airlines solely owned by an African government and the only Government owned airline in the West African Sub region. Recent developments indicate managers of Ghana airways are adamant to relinquish governments golden share of the airline as they desperately try to keep the airline airborne through other hybrids means. A Hercules task for Ghana; however if successful its outcome would be an important historical specimen and an interesting case study in Aviation as no African Airline has successful been diverted from turbulence and debt as astronomical as that of Ghana Airways, while evading privatization or liquidation.
Although Ghana Airways is involved with British Midland a reputable aerospace company, the Ghana Airways BMI deal has obviously side step several important historical, economic and strategic considerations in a desperate move to keep Ghana’s national airline airborne. Whatever the out of the BMI Ghana airways deal if care is not taken it will ultimately lead to a give away of Ghana’s vital national resource base to foreign interest and control just to maintain a single unproductive airline venture whereas Ghanaians could enjoy services of other vibrant Ghanaian carriers if Ghana Airways is privatized, its monopoly broken, and left to the forces of the free market. Aviation analysts are most disturbed Ghana is seeking to place a 50 percent share of Ghana airways in the hands of foreign control when nations across the globe are desperately guarding against such influence and domination in times of global emerging aviation Cartel. Placing more than 49 percent of Ghana airways under BMI, Ghana may also be ignoring some important provisions of the bilateral air services agreement. Ghana needs to take serious caution because Ghana Airways was incorporated as a
national airline with existing monopoly rights till date. It is envisaged this unhealthy monopoly will continue with Ghana Airways under BMI. There is no doubt the Ghana Airways monopoly has been the core center of attraction for BMI

Manager of Ghana airways seem to have ignored historical predecessors like Air Afrique, Nigeria Airways, Zambia Airway, Kenya Airways and South African Airlines which had mounting debt and organizational problems like Ghana Airways. When Nigeria Airways and Air Afrique were at the cross roads of privatization or liquidation like Ghana Airways stands now, instead of privatizing other back roads were chosen, eventually landed these airlines belly up. Like Ghana intends to do rather than privatize both Air Afrique and Nigeria Airways sort hybrid solutions targeted to unmasked new companies. Air Afrique proposed its hybrid to unmask a new Airline through a bail-out from Air France to form Nouvelle Air Afrique.

Before liquidation Managers of Nigeria Airways proposed a new national airlines from the offshoot of Nigeria Airways to be called Nigeria Global through Triton Airbus Group and later Air Nigeria through a deal with Airwing. As both companies tried to negotiate their way through the complex web-locks involved in such hybrid deals the sorry outcome was nothing but eventual collapse of these airlines. For Zambia airways although the Zambian government proposed to bail the airline through government subsidy the Zambian government eventually had to pull the plug on its airline when it came under pressure from the World Bank and the International Monetary Fund. Western aid donors threatened to suspend economic aid to the country in light of more pressing developmental needs, most
especially when a good number of citizens lacked basic necessities such as food, water and shelter ; bailing this unproductive airline venture could not be justified at the time. Unlike Air Afrique, Nigeria Airways and Zambia Air, Kenya Airways and South Africa Airways have both become a showcase of African innovation and success; both airlines escaped liquidation and collapse. Airline mangers of both nations committed to the sure and only remedy: privatization. As a result of privatization Kenya Airways and South African Airlines remain successful flag carrier of their respective countries, while providing citizens with quality and dependable air service.

As managers of Ghana Airways tow the Airline down the path of Nigeria Airways and Air Afrique the difference for Ghana Airways may be its success acquiring a new Operators Certificate and vested traffic rights under BMI as a designated national carrier. The real results of this tinted and experimental Ghana Airways deal yet to be fully uncovered could easily lead to the sorry shadow of Nigeria
Airway, Air Afrique and Zambia Airways or for Ghanaians nothing more than a British carrier registered in Ghana providing Ghanaians high cost services, while enslaving Ghana’s young and vibrant aviation sector whereas Ghana Airways could be privatized on the model of Kenya airways with Ghanaians being major stake holders.

Before Ghanaians fully endorse this important national deal it is imperative all national strategic considerations are taken into account else Ghana would once again be faced with predicaments such as those caused by the AFGO monopoly. Whether Ghana Airway succeeds or not it is important Ghanaians understand Ghana has vast untapped aviation potential which should not be placed under foreign control and monopoly.

Asiwome O. Dzakuma

Commercial pilot & Certified Flight instructor, CFII

[126,7]

Why send the third DC10 to Italy for maintenance if the chances a rather good that the aircraft will be impounded??
Maybe some business strategy that we dont know about:confused:

[Gunship]

As I said before - I am finisghed with the Ghana Scareways pax flying .. but do anyone know he position of Millionair ?

2 weeks ago they arrived once out of 5 schedule flights (I say CLEARLY : Operating under the Ghana Airways banner !) and their rules and regulations ...

What a same - there are many , many stranded pax in West Africa and like me revert flying through Europe to Southern Africa - what a laugh ... :yuk:

[Yak97]

Perhaps this is the answer?

Accra, July 18, GNA - Ghana Airways on Friday took delivery of two DC 9 aircraft to augment its West Coast Operations. Boeing Capital Company of United States of America leased the 26-year old aircraft to Ghana Airways after repossessing them from Africa One Airline of Uganda. The 106-seater aircraft consisting 96 economic class seats and 16 first class seats were flown in from Entebbe, Uganda.

At a ceremony on the tarmac at the Kotoka International Airport, Mr Emmanuel Adjei Boye, Deputy Minister of Roads and Transport, acknowledged that Ghana Airways had faced several problems over the years and said it was incumbent on government to ensure that the airline regained its past glory. He said the delivery was the result of a joint effort between the government and Management of the airline and urged Ghana Airways staff to handle the aircraft with care.

Mr Philip Owusu, Chief Executive of Ghana Airways, said the airline is doing all it could to ensure professional operations. Captain Kwasi Oteng, a Ghana Airways Pilot, said the six-month lease arrangement enables Ghana Airways to fly its own crew and use its engineers in maintaining the craft.

Source: GNA

[4144r]

On Sunday 12th at BZV:
2 DC9 registration 5X.... from Entebbe at the same time !!!
Call sign: Ghana Airways.
Soft Landing

Sorry it was on Sunday 19th....:cool:

:confused: Saturday 19th for sure!

[Yak97]

More Troubles For Ghana Airways
Attempts by officials of Ghana Airways to do maintenance checks, popularly called C-checks on the airline’s only DC 10-aircraft have failed. The airline’s maintenance contract with Alitalia has collapsed due to its indebtedness to the Italian company. As a result, the aircraft, which had been due for servicing in Rome on the 17th of this month, remains in operation.

JOY FM has learnt that the plane’s airworthiness expired on the 17th July and that the plane should have been grounded accordingly. However, engineers of Ghana Airways have reportedly taken advantage of a clause in the air operators’ certificate to extend the flight airworthiness by an additional month.

The Ghana Civil Aviation Authority has recognsied the extension and taken the expiration of the airworthiness of the DC 10 to the 17th of next month.

Some observers say Ghana Airways could be operating illegally in contravention of its air operators’ certificate since Alitalia has withdrawn its engineering support. But Richard Abu of the Maintenance Department of Ghana Airways says the option being exercised now is not new.

Source: JOY ONLINE

[Cardinal Puff]

Saw the DC9s leaving EBB around the 18/19th under a Ghana XXX callsign. Reg's are 5X-TWO and TRE as the DC10 is 5X ONE.

As for the -10 it's got a bust stbd wing as a result of being manhandled into the fin of the Sabreliner that's parked on the old apron at EBB after taking ground fire around Bunia.

Africa? :mad: