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Ethiopian Airlines Rescues Ghana Airways

Statesman
25 April 2005 | Business & Finance

Accra, April 25, Statesman -- In spite of information that Ghana International Airlines (GIA) had raised $US2.9 million, as part of its 30% stake to help a new national airline begin operations in June, The Statesman is informed that the Ralph Atkin-led GIA has been struggling to find resources to justify its selection as strategic partners and manager of the carrier to replace Ghana Airways Ltd.

But one of Africa's most successful airlines, Ethiopian Airways have come to the rescue.

An Ethiopian team, which flew to the country last week to negotiate with government officials, reached an understanding which may see the Ghana government retain 25% shares in Ghana Airways and sell off 40 percent to Ethiopian Airways and GIA.

While there are still some question marks as to the insistence to keep GIA on board, the Ethiopians, who sources say were ready to absolve more than the 40 per cent may be offered 24 percent with GIA taking 16 per cent. GIA had first approached Ethiopian Airlines for support to run the new national carrier with the initial offer to split its 30% stake with the East African Airline.

The Government intends to float on the Ghana Stock Exchange for public the remaining 35 percent. But this is not expected to materialize until about two year's time.

Meanwhile, there are negotiations to invite the Social Security and National Insurance Trust to make a kind of bridge purchase of the remainder until the anticipated public listing.

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