Aviation sector issues President Akufo-Addo must face in his second term

Having been declared victorious in the December 7 presidential elections by Chairperson of Ghana’s Electoral Commission. Jean Mensa, President Nana Addo Dankwa Akufo-Addo, working through his appointees, must now tackle key issues in the aviation sector if the full benefits of air transport are to be realised in the next four years.

Undoubtedly, the re-setting up of the Ministry of Aviation—which had been treated as an appendage of the Ministry of Transport– as a stand-alone ministry has served the industry well. That decision and the ensuring appropriate budget allocation to the Ministry, has led to the mainstreaming of the sector.

In 2018, the aviation sector contributed US$2.5billion to the country’s GDP. That notwithstanding, the following are the key issues that beg the attention of the President-elect:

Struggling CAA & Airports Company

The current pandemic has revealed in all it starkness the lack of financial buffer for the Ghana Airports Company Limited. The state-owned limited liability company has had to turn to central government for financial assistance to be able to pay salaries due to the massive drop in its aeronautical revenue—Airport Passenger Service Tax, aircraft parking fees etc.

The COVID-19 induced closure of the Kotoka International Airport for scheduled flights from March to September led to a drop of about 80 percent of GACL’s revenue within the period.

Since the re-opening of the airport for international flights on September 1, airlines servicing the KIA have recorded low passenger throughput, with load factor ranging between 50-70 percent.

Daily pre-COVID-19 frequencies have now been reduced mostly from 7x per week to 4x per week. It is now clear that the GACL must be assisted to scale up non-aeronautical revenue while the state may possibly look at increasing its working capital.

The aviation sector regulator, Ghana Civil Aviation Authority (GCAA), has also seen its major income source severely impacted by the pandemic. It has also received assistance from central government to help with its overheads. However, the financial challenge it faces now needs to be addressed.

New ‘Ghana Airways’

It has been the aspiration of successive governments to re-establish a home-based carrier that would once again fly the Ghanaian flag and give impetus to the aviation hub dream. Initial attempts at partnering some major international airlines did not work out. Currently, a Memorandum of Understanding (MoU) has been signed with EgyptAir to work with the Cairo-based airline in establishing the new airline.

The immediate task at hand is to finalise the various shareholders agreements, approval by Cabinet and submission of the agreement to Parliament for scrutiny and approval before the 7th Parliament of the 4th Republic is dissolved in days.

Review of US$150 COVID-19 test charge at Kotoka Airport

Though the antigen test currently carried out on in-bound passengers has helped to contain the spread of the coronavirus in the country, it has greatly increased the cost of travel. As we approach the festive season, a lot more Ghanaians living abroad are expected to return home for Christmas.

Though the GACL recently waived the cost for children aged 5-12years, there have still been calls for a reduction in the cost. Indeed, organisations such as the Consumer Protection Agency, Ghana Tourism Federation have made several calls for a review to no avail.

A review of the relatively expensive cost of the test should merit attention.

Resourcing the AIB

The work of the Accident Investigation Bureau will be imperative in reducing the annual accident costs attributed to general aviation in Ghana and the West Africa sub-region.

In recent times there have been major initiatives, such as infrastructural projects and systems enhancements, which combined with this legislation are gradually positioning the country at the heart of civil aviation in the sub-region.

The setting up of the bureau is also in readiness for Ghana’s upcoming International Civil Aviation Organisation (ICAO) audit in 2021. However, the AIB must be well-resourced to efficiently carry out its mandate.

Completion of on-going airport projects

Completion of the Kumasi, Sunyani, Tamale and Cape Coast airports would be keenly awaited by residents, traders and hospitality industry players. Though works on Kumasi and Sunyani airports are nearing completion, it must be completed on time to open up these two main mid-Ghana cities. Tamale and Cape Coast airports should not escape attention.