Ghana Airways' financial crisis hurts GCAA

The Ghana Civil Aviation Authority (GCAA) said on Wednesday that Ghana Airways' financial problems have a major repercussions on GCAA's operations since it is a major contributor to the authority's revenue.

This is because the airline contributes about 30 per cent of GCAA's annual revenue, the Acting Director General of the GCAA, Captain Joe Boachie said when he briefed an 18-member Parliamentary Select Committee on Roads and Transport, which was on a familiarization tour of the facilities and ongoing projects at the Kotoka International Airport (KIA).

Currently, Ghana Airways is indebted to GCAA to the tune of six million dollars and this was causing a lot of operational problems for the Authority, he said. The debt was from its inability to pay their airport passenger service as well as aeronautical charges.

Among the number of concerns put before the Committee was the issue of GCAA's tax payment to the government. Capt. Boachie said the international norm was for civil aviation authorities to reinvest revenue they generated into airport development projects.

He also expressed concern about the court injunction initiated by the La Traditional Council on the development of the Airport City Project. Capt. Boachie said following September 11 terrorist attacks in the US, some airlines had reduced the number of flights, but GCAA had enjoyed substantial increase by other airlines such as Lufthansa, Alitalia and KLM Royal Dutch Airlines while Kenya Airways had started operations in Ghana.

He noted that this was a healthy sign for the nation's development and confidence that the international aviation community had in GCAA. Capt. Boachie said following the recent installation of new radar some airlines, whose routes take them close to Ghana's flight information region, were now routing their flights through Accra because of the availability of that facility.

He said he was happy to note that several African countries including Senegal, Rwanda, Togo, Burkina Faso, Sierra Leone and the Gambia have visited Accra to understudy GCAA's operational practices on recommendation from the International Civil Aviation Organization and the Federal Aviation Administration of the United States.

Capt. Boachie said phase two of the rehabilitation works involving the extension of the runway and passenger terminal as well as a dedicated freight apron was on course and expected to be completed by September.

Mr Solomon K. Sarfo, Chairman of the Committee expressed satisfaction at the development projects and expressed the hope that they would be completed on schedule. This, he said, would minimise congestion and delays.