Aviation in Ghana: State of the sector 57 years after independence

Post-independent Ghana had lots of verve for flying, which translated into visible developments in the aviation sector. After 57 years of independence Dominick Andoh writes about the present state of the aviation sector, and what the future holds for the sector.

The country’s first President, Dr. Kwame Nkrumah, was passionate about the aviation industry and saw it as essential in the country’s development agenda.

He set about developing aerodromes all over the country. It is reckoned that, there were as many as over 50 aerodromes in the country as at 1961. These were used for civilian, military, and for emergency evacuation purposes.

The period between 1958 and 1961 saw the growth of the aviation sector in the country spurred on by government-led huge investment in the sector.

There was a tenacious desire to establish a national airline by the government of the day. This led to the setting up of Ghana Airways in July 1958 by the Government with an initial capital of £400,000. Government, on behalf of the people of Ghana, held 60 percent stake in the airline with BOAC holding the reminder. The airline made a profit of US$28,000 at the end of its first year in operation. (see figure 1)

Ghana Airways after 57 years
After 57 years of independence, Ghana Airways which used the Kotoka International Airport (KIA) as its hub and had fleet that could rival major airlines around the world, is no more. The airline, ridden with debt, ceased operations in 2004. Attempts were made to revive its fortunes but to no avail. In June 2005, the airline was liquidated.

The cause for the demise was nothing but sheer mismanagement and abuse of bureaucratic perks by government and some political elites. The airline was stuck in a quick sand of nepotism that manifested in recruitment and training.

Government attempted a public-private-partnership (PPP) arrangement in order to revive the national carrier, which came to be was known as Ghana International Airlines (GIA). However, the attempt didn’t go as planned and eventually in May 2010, GIA suspended operations.

Two years ago, government hinted that it is interested in establishing a new national carrier on private, PPP basis. There has been interest from both domestic and foreign investors willing to partner government in realising its vision. The sector ministry, Ministry of Transport, has subsequently advertised, and shortlisted six companies to provide advisory services to government in the establishment of a new national airline.

The government is also putting to bed outstanding issues with the last national carrier, Ghana International Airlines (GIA) to pave the way for the establishment of a new flag carrier. However, establishing a national carrier is not out of place given the macro-economic stability and the economic growth experienced in recent years.

It is significant for the country to have a national carrier. It will have a big impact on the economy. Ghana’s economy is growing, and a national carrier will boost that growth. Air traffic is growing, and Ghana can benefit from it. However, any such initiative should be privately managed and should take into account other carriers servicing popular routes in Europe and Asia from Accra -- and come out with a business model that will make it profitable.

Choosing a successful model for the proposed national airline is absolutely crucial. Insightful practicality must be engaged in any decision and that decision should be in the best interest of the country. Examples abound both in Africa and beyond on how to successful run national carriers. There is no point re-inventing the wheel because we should just learn from history and also from the successful national

For instance, it will make business sense if the proposed national carrier will start with servicing routes within the sub-region, and on the continent where there is a growing market, and then grow from there -- rather than join other operators servicing popular routes in Europe and the Americas from the onset.

State of aviation infrastructure in the country

Fifty seven years after independence, the nation can boast of 32 plus aerodromes all over the country—from Accra to Paga in the Upper East Region. The International Civil Aviation Authority (ICAO) lists the following as airports in Ghana:

The Kotoka International Airport (KIA); Tamale, Kumasi, Sunyani and Takoradi are used for civilian operations by four local operators--Africa World Airlines (AWA), Starbow, Fly540 and Antrak Airlines.

Domestic airlines are limited to flight operations between 6am and 6pm local time for all four local destinations. The militating factor is the lack of runway lights, and in some cases, absence of Instrument Landing Systems.

Kotoka airport
Government has stated unequivocally that it desires to turn the KIA, and for that matter, Ghana into the ‘gateway to West Africa’.

Indeed, the GACL has done some rehabilitation works at the Kotoka International airport. The company has completed a new parking apron that can accommodate eight wide-bodied aircraft. The company is to remodel the terminal building of the KIA to ease traffic. This will ultimately provide 13 aerobridges to facilitate passenger-boarding.

An estimated US$402million is also required to develop KIA as a hub to service the sub-region under the Investment and Gateway Programme. The KIA currently has two terminals. Terminal 1 is used by domestic operators and some regional carriers while T2 is mainly used for international arrivals and departures. However, increasing passenger throughput has put pressure on the facilities at the KIA. (See figures 2). The international departure is almost always crowded in the evening when most international carriers operate flights to and from Accra. The snowball effect is a crowded immigration clearance area for both out-bound and in-bound travels.

The President, John Mahama, has promised that his government will construct a new terminal at the Kotoka International Airport (KIA), to take pressure off Terminal 2 of the facility. The new terminal is to be known as terminal three. He, however, stopped short of disclosing the cost and source of funds for the T3 project. Commencement and completion dates were also not stated.

Instructively, while the government is still trying to figure out, which way to go in trying to chart a strategic path for the aviation sector, our ambitious West African neighbours Nigeria, Togo, Senegal and Gambia have set themselves out to be very competitive and far more attractive than Ghana.

Dakar is aiming to attract 10 million passengers per year by 2020, hence the investment in a new international airport. The Senegalese government is constructing a second international airport that is scheduled to be completed by the fourth quarter of next year. The airport, located some 47km outside of Dakar, is expected to cost about US$450million.

One key feature in these initiatives is the active participation of private investors. In the case of Senegal, the Senegalese state will own a 45% stake, with the remaining 55% held by Aeroport International Blaise Diagne SA, a company owned by Senegalese investors.

Togo is busily upgrading and expanding the Lomé-Tokoin Airport as it aims to transform Lomé into a sub-regional transport hub. The project, which costs an estimated US$150million, is expected to be completed next year.

The project involves construction of a new 21,000 square metre terminal with two levels to conform to International Air Travel Association standards. When completed, the airport will have the capacity to simultaneously handle two large planes and three medium-sized planes, and 15 aircraft in total. It will also have three aerobridges that will offer direct mobile access to aircraft.

The Gambia is also constructing a new US$3million cargo terminal at Banjul International Airport as it looks to improve on its air cargo transport.

Ghana government must now prioritize and decide where the KIA fits in the scheme of things, and ensure funds are available to undertake the proposed and on-going projects at KIA.

The local airports

The facilities on ground in Kumasi, Takoradi, Sunyani and Tamale need improvement. Kumasi remains the busiest domestic airport in the country. It accounts for the largest passenger throughput on the domestic routes. All four domestic operators -- Antrak, Fly540, Starbow and AWA -- fly daily to the Ashanti regional capital. Some defects detected on the runway last year, forced a temporary shutdown of the facility by the Ghana Civil Aviation Authority (GCAA) for safety reasons. It was re-opened some days later. However, a comprehensive rehabilitation of the facility is about just 25 percent completed.

The Sunyani airport is also undergoing some remedial works. However, three weeks ago, the sector minister, Dzifa Attivor, told Parliament that a new airport is planned for Nsuatre in the Brong Ahafo Region. She, however, could not give a timeline as to when work will begin. Government in the 2014 budget also promised an airport for every region.

The Tamale airport is now being upgraded, at a cost of some US$150 million, to meet international standard. It is expected to serve as the second international airport and an alternative to the KIA.

While these are nice initiatives, the fact remains that there is no money to speedily complete all these projects.

What needs to be done now?
To quickly keep up with the kind of growth being experienced are:

• Secure funding to complete the implementation of the KIA upgrade

• Purchase and install runway lights in Kumasi, Sunyani, and Tamale to make evening operations possible.

• Complete the rehabilitation of the runway and ancillary facilities at Kumasi, Sunyani and Tamale

• Shelve plans for the construction of aerodromes in all other regions and focus on the ones in operation now.

• If there is no cash, adopt a build–operate-transfer approach to get the above done.