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12.05.2006 Business & Finance

Flight cancellations galore by GIA

By David Atta Brown
Flight cancellations galore by GIA
MAY 12, 2006 BUSINESS & FINANCE

Due to the dire financial situation facing Ghana International Airline (GIA) it has had to cancel 14 flights beginning on 24th May.

Below is the schedule of cancellations (see email below):

Departing Accra: G0 101 of 24 May (Wed), 28 May (Sun), 01 Jun (Thu), 04 Jun (Sun), 07 Jun (Wed), 11 Jun (Sun) and 13 Jun (Tue)

Departing London: G0 100 of 25 May (Thu), 29 May (Mon), 01 Jun (Thu), 05 Jun (Mon), 08 Jun (Thu), 12 Jun (Mon) and 14 Jun (Wed)

The reason for the cancellations is plain and simple, a lack of cash. The airline needs to raise $US1.25m to pay Ryan International for the leasing of the aircraft. That apart $US450.000 monthly usage charge needs to paid to Raddixx, operators of their booking system. Both these payments need to be made by the 29th of May while fuel, staff and other overhead cost needs to be met.

The low passenger numbers has severely taken its toll and the current situation is worse than bleak. Despite attempts by some officials to pad the passenger numbers, the situation cannot be disguised any further. The number of passengers booked to travel on their flight yeserday (11th May) from London Gatwick was 33 while from Accra to London the number falls to 30. Today (12th May), 64 passengers are booked to leave Accra and 43 from London.

The attempted strategic partnership with Ethiopia Airlines is dead and buried now as the Ethiopians have been scared off by the kamikaze approach to business by the government of Ghana.

Minority shareholders, GIA-USA, it would appear are unwilling to continue with the partnership with the Ghana government. The airline is fast becoming the poisonous chalice nobody is willing touch, due to the poor judgement of the Chief of Staff.

Email from Mgmt Sent : 10 May '06 16:58

Subject : GIA Flight Schedule modifications

Please note the following flight schedule modifications.

The following GIA services will not operate.

G0 101 of 24 May (Wed), 28 May (Sun), 01 Jun (Thu), 04 Jun (Sun), 07 Jun (Wed), 11 Jun (Sun) and 13 Jun (Tue) G0 100 of 25 May (Thu), 29 May (Mon), 01 Jun (Thu), 05 Jun (Mon), 08 Jun (Thu), 12 Jun (Mon) and 14 Jun (Wed)

Aircraft will overnight in ACC on 24 May, 28 May, 04 Jun, 07 Jun, 11 Jun and 13 Jun. Aircraft will overnight in LGW on 01 Jun.

All passengers currently booked on these services will be contacted by GIA and notified of the schedule changes. Pax to be offered reaccomodation on previous/next day flights. Radixx and sales teams to please action.

Outside vendors - this serves as official notice of the schedule change - your usual contacts within GIA will liaise on the logistics with you.

GIA staff - please notify relevant personnel and vendors accordingly.

— SEAN C. MENDIS Special Asst. to the C.E.O. Ghana International Airlines Limited

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