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Ghana International Airline to wind down
By Masahudu Ankiilu Kunateh, Ghanadot
Accra, Oct 23, Ghanadot - 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 FM, an
Accra-based radio station 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 hinted
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.
Ghanadot
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