Ghana: Cecilia Dapaah heads newly created Aviation Ministry

Former Member of Parliament for Bantama, Cecilia Dapaah has been nominated for the newly created Aviation ministry.

Her mandate involves working to develop Ghana’s aviation industry to make it very competitive within the sub-region. This also ties in with the government’s target to make Ghana a hub for West Africa to attract large volumes of traffic within and beyond the sub-region. Madam Dapaah is also expected to supervise the development of all various airports across the country to status befitting an aviation hub in the sub-region.

 According to President Nana Addo, the Aviation ministry has become necessary because, “We want to make Ghana a hub for West Africa in the airline industry and every opportunity to do so. KIA is already one of the most patronized airports in West Africa but there are policy and structural reforms that we have to make in the way we handle that industry if indeed we are to succeed in making it a hub in WA for all of these large business that international airlines do.”

 The President also justified his nomination of Madam Cececlia Dapaah for the aviation ministry. “For that we need a dedicated person within the government whose brief it will be to work to make the various airports that are being developed the airport of choice for the international community for their activities.”

 Cecelia Dapaah was a deputy minister of Public Works and Housing under former President John Kufuor between 2005 and 2006 and subsequently the substantive Minister from 2007 to 2008. Whilst in parliament as Member of Parliament for Bantama, she served on various committees such as Works and Housing; Advisory Committee to the Speaker; Employment, Social Welfare and Youth; Foreign Affairs; and Special Budget. 


Source 
City Business News 

Ethiopia set on building Africa's Largest Airport

Ethiopia's infrastructure binge shows no signs of slowing down, with plans being made to build a $4 billion second international airport in the Addis Ababa area, one that could serve as many as 120 million passengers per year when it opens in about a decade’s time. 

But a new report by risk analysts PGI Intelligence warns that the airport mega-project is at risk of delays due to challenges securing finance, while the huge costs entailed threaten to worsen foreign exchange shortages in the coming years.

The planned airport would make it Africa’s biggest airport by far, and even larger than London’s Heathrow, which handled 73.4 million passengers last year, with a capacity of 90 million.

Africa’s busiest airport is O.R. Tambo International Airport near Johannesburg, South Africa; about 18 million passengers passed through its terminals last year and ongoing expansion work will raise capacity to 28 million.

The planned giant airport in Ethiopia is set to be one of the country’s most ambitious projects, surpassed only by the $4.8 billion Grand Ethiopian Renaissance Dam and demonstrates the government’s ongoing commitment to state-led development through investment in huge infrastructure projects.

Already, Ethiopian Airlines is the only major African carrier that is reporting healthy profits, in the region of $175 million in 2014/15, while the other big three – South African Airways, Kenya Airways and Royal Air Maroc – are facing financial headwinds, bleeding cash badly and/ or reporting virtually no growth as reported earlier by Mail & Guardian Africa.

The project reflects the scale of Ethiopia’s economic ambitions and will form an important component in developing the country’s tourism and light manufacturing sectors, as well as putting Ethiopian Airlines in pole position to consolidate its market share and comprehensively overtake Nairobi as East Africa’s aviation hub.

Separate from Bole

The new project is separate from the ongoing $350 million expansion of the current Bole International Airport in Addis Ababa, illustrating the importance the government has attributed to planned aviation sector growth. The current airport expansion is set to increase capacity from 6 million passengers annually to 22 million by 2018.

The two developments combined aim to transform Addis Ababa into one of the largest aviation hubs in Africa, with the new airport consisting of four runways, several passenger terminals and an airport city on the outskirts of the capital.

But it also raises the question whether Ethiopia can command those kind of passenger numbers to make the investment worthwhile.

A decade ago, Bole handled fewer than a million passengers a year, by last year that had risen to 7 million. Passenger numbers are expected to continue increasing by about 10% a year – which means it could take more than two decades for the airport to reach full capacity.

But Ethiopia’s state-driven capitalist model aims to line up all the ducks in a neat row, looking to deliver passenger numbers not just through bolstering Ethiopian Airlines’ position as an aviation leader in Africa, but also through growth in tourism and light manufacturing sectors, as part of the country’s second Growth and Transformation Plan (GTP-II).

The GTP-II will cover the period 2015-2020, and is set to be launched officially in the next few weeks with the airport as its flagship project. It is also expected to include the $1.8 billion Gilgel Gibe 3 dam, a raft of geothermal, solar and wind projects, and a vast house building programme.

Tourism currently generates $2.9 billion for the economy and several international hotel chains have set up operations in the country in recent years; in August the culture and tourism ministry announced it planned to triple Ethiopia’s annual foreign visitors to 2.5 million by 2020.

Increases to freight capacity will likewise support the light manufacturing sector, for which the government has already attracted several global brands and Unilever, General Electric and GlaxoSmithKline are all planning investments that will supply international markets.

Industrial parks

Ethiopia is targeting $1 billion of annual investment in industrial parks over the next decade to boost exports and make it Africa’s top manufacturer. The government may invest half of the $10 billion needed for zones across the country that will house textile, leather, agro-processing and other labour-intensive factories, a special advisor to Prime Minister Hailemariam Desalegn said in May.

But analysts are warning that Ethiopia’s mega-infrastructure binge will put enormous pressure on Ethiopia’s public finances, which are already strained following the first growth and infrastructure plan that expires this year (GTP I 2010-2015).

In September, the IMF reported Ethiopia’s public debt-to-GDP ratio was already at 50%, and GTP II would see this increase further.

Concerns around the sustainability of these debts could create challenges in securing finance for the new airport; without an immediate demand for its services, Ethiopian officials could struggle to secure finance from foreign lenders at concessional rates, the PGI Intelligence report states.

As with GTP I, both the new airport and GTP II are likely to depend heavily on domestic funds to finance projects. The absorption of funds by large infrastructure projects has created huge liquidity problems in Ethiopia over the past five years, resulting in delays to imports and difficulties for the private sector to access finance.

These restraints have been compounded by banking regulations that require banks to pay an additional 27% of each loan to private companies into state bonds that fund the government’s growth plans, a requirement that “frequently deters banks from lending to the private sector,” PGI Intelligence says.

With little sign the government is willing to ease restrictions on the banking sector, access to finance and liquidity will remain among the major barriers to success as the government presses ahead with its growth plans over the next five years, the analysts warn.

Crumbs

Not to be deterred, however, regional banks are all lurking on the streets of Addis Ababa, looking to set themselves up for even the crumbs of Ethiopia’s still very tightly regulated banking sector.

Foreign lenders are not allowed to own banks in Ethiopia, and the financial sector is dominated by the state-owned Commercial Bank of Ethiopia.

But last month, South Africa’s Standard Bank opened an office in Ethiopia, “to gain a foothold in one of Africa’s fastest growing economies”, it said in a statement, and this week, Kenya Commercial Bank (KCB) announced it had received a licence to open a representative office in Ethiopia.

Other banking institutions with representative offices in Addis Ababa include the European Investment Bank, Germany’s Commerzbank, pan-African lender Ecobank, Export-Import Bank of India, National Bank of Egypt and Bank of Africa.

Korean Tourist arrested and fined $44,000 for threatening crew and doing yoga

  

A Korean tourist who was arrested after he became violent when he wasn't allowed to do yoga on a plane leaving Hawaii won't get additional jail time. But he must pay United Airlines more than $44,000.

A federal judge in Honolulu on Thursday sentenced Hyongtae Pae to time served, which was about 13 days. He'll be under court supervision for three years, which is the amount of time he has to pay the restitution.

Pae and his wife were celebrating their 40th wedding anniversary with a Hawaii vacation and the couple was headed home when he was arrested.

According to court records, Pae didn't want to sit in his seat during the meal service on the March flight from Honolulu to Tokyo, so he went to the back of the plane to do yoga and meditate. Authorities say he refused to return to his seat, threatened crew members and passengers and shoved his wife. The pilot turned the plane around and returned to Honolulu. Pae told authorities after his arrest that he hadn't slept in 11 days.

Court records say he threatened to kill passengers and was yelling that there is no god. Pae went into a rage because he felt the flight crew was ordering him around, prosecutors said.

He pleaded guilty in April to interfering with a flight crew and was allowed to return home to South Korea, even though prosecutors warned he might not return for his sentencing.

U.S. District Judge Helen Gillmor said she agrees with prosecutors that Pae's actions constituted a violent felony. Because of that, it's possible he may never be allowed to return to the United States. That's fine by Pae, who is in his 70s and doesn't intend to travel to the United States in the future, said his defense attorney, Jin Tae "J.T." Kim.

"I think your client is getting off very easy" with the $44,235 restitution amount considering the costs of turning the plane around, including jet fuel and all the passengers who had to return to Honolulu, Gillmor said.

"I take this very seriously and I have a great deal of concern about this behavior," she said.

It was a traumatic experience for the passengers and the flight crew, said Assistant U.S. Attorney Jill Otake, adding that it's fortunate there were Marines on board who helped restrain him.

Pae tried to bite and head-butt the two Marines, prosecutors said.

Gillmor said Pae may return to home to Korea, but before he leaves must meet with a probation officer to work out restitution payments.

Pae declined to speak in court. "He didn't say it but he does apologize for what happened," Kim said outside of court. "This is a truly isolated incident." Kim noted that Pae flew to Korea and back without incident.

Source

Fox News

GCAA STAFF EMBARK ON STRIKE OVER ENCROACHED AIRPORT LANDS

Staff of the Ghana Civil Aviation Authority (GCAA), began a four-day strike from yesterday, Tuesday July 5, to July 8, in protest for the release of some encroached aviation lands.

According to the staff, their action could result in flight disruptions at the Kotoka International Airport.

The strike may result in some disruptions to services of the GCAA from the following sections as part of the road map toward securing the La Nkwantanang lands:

•  Audit and Finance – no issuance of some cheques;
•  AIS – no circulation of domestic NOTAM and flight plans; 
• Drivers – no transport services after picking and dropping staff;
• Safety Regulations – no inspections; 
•  Exit and Procurement – no services to external clients

The staff served notice of the intended strike on June 21, over the encroachment and warned that the appropriation of lands reserved for aviation traffic purposes by private developers and politicians risked compromising aviation security and safety in Ghana.

In a statement, the staff said lands at Adenta (La Nkwantanang) and Labadi (La Wireless) meant to be developed into receiving and transmitting stations, respectively, have been appropriated for residential purposes, thus, exposing Ghana’s air transport safety and security to vulnerability.

“For months, HF equipment, purchased by GCAA, worth over 600,000 Euros for installation at La Nkwantanang to enhance communication are still in GCAA’s stores. Our engineers have been denied access to the site to make a preliminary preparation ahead of the arrival of their foreign counterparts due in the country on the 1st of July, 2016,” the statement said.

“Our inability to install the HF equipment, as well as other navigational equipment at the site, will have a dire consequence on aviation safety in Accra airspace. The control of aircraft over the Oceanic is seriously being hampered by this unfortunate situation.

“We are aware that the management of GCAA, as well as the Ministry of Transport, has made several appeals and has justified the need to, at least, give about 250 acres of the land back to GCAA, but all to no avail.

“We want to reiterate that if the said land is not released for the installation of this vital equipment, the system can shut down and we may not be able to provide Air Traffic Services over the ocean and other portions of the airspace. This will have safety and security implications for the country and the industry in general,” the staff warned.

African Govts Urged To Review Airport Charges ~ IATA

The International Air Transport Association (IATA) has called on African governments to  review their airport taxes and charges  to attract more airlines  into the continent.

It said airport charges and taxes in Africa were the highest in the world.

A reduction of the charges would attract more players into sector, create jobs and enhance its contribution to the Gross Domestic Product (GDP) of the countries.

An IATA study of 12 African countries two years ago showed that a downward review of the charges could create about 155,000 additional jobs in the countries surveyed, and add $1.3billion to the GDP of 12 countries. It was for these reasons that IATA had engaged some African governments for a review.

The list of charges to include: ground rent, landing and parking fees, service recovery charge, navigation charges, fuel surcharge; but a need to review the  levy on aviation fuel, which has bee a negative impact on airlines’ operating costs.

The price of aviation fuel is higher in Africa – above the global average of $1.3, that it  is between $2 and $3.7 more than twice the global average.

Some African governments were raising revenues from their aviation sector through charges, and advised them to imbibe the model of the developed world, where governments were building new airports to accelerate the growth of air transportation.

 “It is actually to let  African governments realise that aviation is not a preserve of the rich or famous or those who can afford it. It is for this reason that two years ago in 2014, we did the study on the benefits of aviation."

“A study on the benefit of aviation in Africa and a select of 12 countries, three from Southern African region. The outcome of the study indicated that 155,000 jobs would be created and $1.3 billion will be added to the Gross Domestic Products of the 12 countries’ economies.

“The Five million passengers who are not able to travel by air will be able to because of increased competition.“This would bring down airfares by up to 35 per cent. This was a significant diversion from the previous mentality that air travel is for the affluent only.

“Governments will see the benefits in terms of employment generation, in terms of GDP contribution and in terms of business facilitation. Use this as a tool to engage with governments to ask them ‘why are you over taxing aviation instead of making it more competitive.” He also spoke of plans to engage the governments to see how aviation could be utilised for economic development.

“We  have been engaging with governments, especially in countries where taxes are higher. Today,fuel prices globally average per litre is $1.3. In Africa, it ranges between $2 and $3.77. In some places, more than twice is globally.

“On the average, we notice that fuel price is 21 per cent more expensive in Africa than the world average and the addition of taxes therein. Africa is not a rich continent, then why must we be paying the most? “ It is unacceptable that aviation fuel price is higher in oil producing country like Nigeria. 

“We are asking governments to review these taxes.”

“If the airport taxes or charges are reduced, you tend to attract a lot more passenger traffic. More airlines would find it more competitive to come. In the case of Africa, " I always tell the airport operators. One thing we do is that we forget that airports next door are competing against each order", 

“If Johannesburg Airport becomes too expensive, an airline would rather operate to another airport. A need to be careful to make airports more attractive. If they are attractive, many airlines would come in. " If the cost of flying there is cheaper, many airlines will come; if the taxes are less and there is more attractive destination.

IATA was worried over the poor financial performance of African carriers, but the body has projected 2017 as possible date for the airlines to return to profitability. “I don’t know how long it is going to take, we estimate that African airlines will be back to profitability. 

“ If you look at last year, for instance, Ethiopian Airlines made $200 million profit, but if you take their profit, plus the loss of other airlines, you get a bigger loss.”

The low cost carrier model may not be workable for some countries in the continent because of existing barriers and other considerations. “Low cost airlines, wherever they exist, play a very critical role contrary to thinking by some legacy carriers that low cost carriers have come to take over their market.

“Low cost carriers have a tendency to stimulate additional demand and come up with a new market segment that in most cases has not been seen before. “Unfortunately, in Africa, you are seeing a concentration of low cost carrier still in a few markets.

“This is because the low cost business is based on low price and high volumes and, many markets in Africa, we don’t have the volumes. There are volumes in South African domestic market. “To an extent, Nigeria might eventually come up with low cost model in the future.

“You see that in North Africa, we have low cost model in Egyptian market, in Morocco because of the volumes there. Within Africa, it is a huge challenge because the volumes are not there.

“The other limitation in the growth of the low cost carriers is the limited Bilateral Air Services Agreement (BASA). Such is the case with Fastjet, and its efforts to get into neighbouring countries and the challenges it is having. I am sure you have been reading about it. 

“Those limitations are crippling and we are not likely to see a lot of them coming up any time soon.

“However, in the future, if the market is liberalised, if these 22 countries that signed a declaration open up their markets, we could see many more.”

The regulatory framework for aircraft insurance in Africa is below the global standards, and said many airlines do not posses valid insurance policy.

“I don’t know if IATA plays any role in insurance. In Africa, many airlines don’t do proper insurance. We don’t oversee the implementation or validity of insurance programme. 

“What we do and encourage airlines to do is that we know that in Africa, the insurance scheme is much higher than elsewhere, so insurance premiums are much higher for African operators. Once you become International Operations Safety Audit  airline, you are given certain consideration because your risk exposure is lesser.”

An exclusive online interview of IATA’s Vice President, Africa, Mr Raphael Kuuchi.

Source - Aviation News

Tapping Into the Potential of Africa's Airline Industry in Africa

As it is said in Africa, it is often easier, faster and more reliable to get from one country to another by connecting through an airport out of the continent.

For instance, the quickest route from Nairobi to Bangui in the Central African Republic, a distance roughly equal to that between Chicago and Miami, is to fly eight hours north to Paris, change planes and fly eight hours south.

Getting from Africa to Europe is relatively simple, thanks to lingering ties from colonial days, but hopping across the length and breadth of Africa can be a nightmare. You cannot compare this with flying from Nairobi to Entebbe which was once mentioned as one of the most expensive routes in the aviation industry.

Flying from London's Heathrow to Istanbul is not a difficult undertaking. It is given that the journey will be direct and will take four hours or so

Some of the notable factors for these and that stop African airports from becoming international hubs are lack of cooperation among countries and stifling air connectivity, growth and development are misaligned government policies. Consequently, this has since discouraged the middle class who would wish to use airline between two neighbouring countries, and instead opt for road transport which is so tedious.

Nonetheless, once African countries open up their policies to ease air traffic, as it looks, given recent endeavours, ramping up consumer demand will become paramount.

As it stands, passengers have reason to avoid African carriers; the continent is home to some of the most expensive airfares on planet earth. They are subject to excessive levies in the form of airport fees, jet fuel taxes, excise duties and more. There is also strained connectivity due to un-relaxed Visas.

Meanwhile, the problems caused by an unconnected Africa are not limited to inconvenient travel schedules and exorbitant air tickets. Far bigger are the opportunity costs to the economies of the African nations.

Trade and tourism is hindered and investment opportunities lost. And it is not just about economics. Aviation connects people. Africa would be a less fragmented continent with greater air connectivity. It is time to demystify air transport!

The continent cannot take off economically while its runway is incomplete. Governments in Africa need to treat aviation as a strategic asset and not as an instrument of foreign policy.

Africa's past has long been defined by national insularity; its future lies in liberalization. There is an urgent need to open up the aviation industry and promote it as core sector in economic development.

Air travel is no longer a luxury but a necessity, it is not like those days when flying across the continent was a trip back in time for Americans and the Europeans, to the days when passengers brought their own food, when missing a flight meant a three-day wait for the next one and when a seat was not truly confirmed until you were sitting in it and the plane was airborne aftermath.

Despite a notable growing awareness of the role of the aviation industry could play in the development of the continent, the industry is still not meeting this expectation.

As we advocate for increased understanding of the African aviation industry and the growing presence of foreign companies, African governments must all be willing to open their skies and stop fearing that foreign competition would outshine national airlines, some of which have long ceased to operate. It is important that a National Airline is established, it is a recognition to the country and the nation as a whole.

Today, Africa has some of the world's fastest-growing cities and is renowned for its indomitable entrepreneurial spirit, people have a greater need to move goods and services between markets, and when they have disposable income, they want to travel.

Making flights affordable will unlock the dreams that are often blocked by inability to fly across the globe. Air travel is imperatively essential to the prosperity of Africa as it opens up opportunities that did not exist before.

Talk about East African Community; fostering the African aviation industry may be one of the driving forces of integration in the region. Better connected African countries and regions through a viable air transport industry could be the vehicle that can boost intra-African business, trade, tourism as well as cultural exchanges.

Developing the aviation industry may also represent an opportunity to ease constant transport problems facing African countries.

Just like Rwanda's national airline, RwandAir, on its heels of expanding rapidly into Africa, this is a recipe for more achievements considering that Rwanda is one of the fastest-growing economies in Africa. Adding to this is the well-established Ethiopian Airline who has survived the thaws of corruption and political bureaucracy. 

Connecting Rwanda to its neighbouring countries and to the rest of the world will not only bring vast economic gains, but also presents a chance for Rwandans to access other opportunities that would have otherwise gone untapped.

Source - Airline & Aviation News

Gulf News Update : India on the verge of becoming 3rd largest Aviation Market

Hyderabad: With over 20 per cent growth in domestic aviation market in 2015, India is well on its way to becoming the third-largest aviation market by 2020, says a Ficci-KPMG report.

According to the report released on Thursday at the India Aviation 2016 here, with 81 million trips, the domestic aviation market grew at over 20.3 per cent during January-December 2015, the highest growth rate recorded in the world.

The total passenger throughput grew by 17.1 per cent in 2015-16, standing at 184 million till January 2016. Passenger throughput is expected to reach around 370 million by 2020, with domestic traffic constituting around 80 per cent of the total throughput.

The report suggests that aspects such as increasing disposable incomes, fall in prices of Aircraft Turbine Fuel (ATF), increase in tourism, visa reforms, have placed India in a unique position. “This is bringing the country closer to achieving its vision of becoming the largest aviation market by 2030,” says the India Aviation 2016 report.

According to the report, the Indian civil aviation industry has exhibited tremendous resilience to the global economic slowdown and ranks ninth in the global civil aviation market. This is attributed largely to the growing economy, increased competition among airlines, especially among low cost carriers, modern airports, greater use of technology, Foreign Direct Investment (FDI) and increased emphasis on regional connectivity.Global connectivity

The report highlights that the National Civil Aviation Policy (NCAP 2016) is likely to provide a significant fillip to the industry. The various fiscal and monetary incentives, liberal policies focused on “ease of doing business” and enhanced push for regional and global connectivity are extremely positive.

Steps taken to revive and operationalise around 160 airports in India, if chosen carefully, will improve air connectivity to regional and remote areas. Public-Private Partnerships (PPP) in the sector will get substantial support from the state in terms of financing, concessional land allotment, tax holidays and other incentives.

“Enormous growth in domestic passenger traffic, substantial strengthening through government initiatives, decrease in global crude oil prices and airlines showing profits indicates a significantly positive transformation for the Indian civil aviation market,” said Harshavardhan Neotia, president, FICCI.

“The positive impact of NCAP 2016, rise in disposable incomes and the fall in ATF prices are likely to help India leapfrog into the top three of the world,” said Amber Dubey, Partner and India Head of Aerospace and Defence, KPMGA.

International routes

He hoped that the government can match domestic ATF prices with global levels for a three year experimental period. “MRO is likely to see a huge revival if the service tax is zero-rated. Growth of aviation and tourism can create a huge multiplier in terms of GDP growth and jobs,” he added.

The report quoted International Air Transport Association (IATA) that passenger traffic on international routes showed an increase of 6.5 per cent in 2015 compared to 2014.

During April-December 2015, international passenger throughput at Indian airports grew at 7.7 per cent. Middle East continues to lead in the growth of revenue passenger kilometre (RPKM) followed by Asia-Pacific, Latin America and Europe. North America and Africa showed sluggish growth. By 2034, it is expected that Asia-Pacific will be the biggest market for global aviation.

The report strongly suggests that in order to ensure high-geared growth, it is imperative to broaden the base of domestic flyers through greater air connectivity in tier 2/3 cities.

Nigeria's falling economy forces major airlines to pull out.

Major international airlines are deserting Nigeria citing the free-falling local currency and an economic crisis that has seen government introducing tighter foreign currency exchange controls.

United Airlines, the third largest United States based carrier by revenue, has become the latest airline to pull out of the West African economic giant with its flights ceasing by June 30.

The airliner cited reduced revenue, which has been blamed on the deteriorating value of the naira and tight currency controls by the government as some of the reasons for the decision to stop flying to Nigeria.

United Airlines followed on the footsteps of British Airways, Spanish national airline Iberia, Air France-KLM, Qatar Air, and Etihad, who were also unsettled by the Nigerian government's given restrictions on the repatriation of revenues on tickets sold in naira.

Nigeria has struggled with dwindling foreign reserves due to the downturn in the energy sector as oil prices dropped globally.

The government, in a bid to manage foreign exchange outflows, placed restrictions after it limited money transfers out of Nigeria. The policy has hit international carriers hard as their funds have been trapped funds at the Central Bank of Nigeria (CBN).

According to the International Air Transport Association (IATA), international are owed about $575 million by the central bank.

Sources have also revealed that the international airlines have been going through a hard time as they were not able to record a "high load factor". 

This was brought about by the economic problems bedevilling the West African country, which has depleted the finances of those who otherwise would travel out of the country on business or holiday.

Airlines recently adjusted their fares and stripped off all promotional tickets, making it more expensive for ordinary travellers to fly.

United Airlines' daily route from Houston to Lagos had been experiencing some downturn for years but stayed relevant because of its importance to Texas based customers, United Continental Holdings Inc, reports say.

Passengers can still fly to Nigeria on United Trans-Atlantic business partner, Deutsche Lufthansa AG, through a connecting flight to Frankfurt.

The Boeing CO. 787 serving Lagos will now be plying the San Francisco/Tel Aviv route, which has expanded to daily flights from three times weekly flights.

Industry experts say more airlines might also consider pulling out of Nigeria due to the worsening economic problems.

IATA on Monday said it had been engaged in talks with the government on how to repatriate airlines' funds trapped in CBN and said it was confident a solution would be found soon.

Source
-The Africa Report

Starbow and AWA receive IATA - IOSA Certification

Starbow Airline

Africa World Airline

The two operational domestic airlines in the country, Starbow and Africa World Airliners (AWA), have received the International Air Transport Association (IATA) Operational Safety Audit (IOSA) certificate -- a measure of the sound safety, management and quality control systems of the two operators.

The IOSA is the benchmark for global safety management in airlines. All IATA members are registered and must remain registered in order to maintain IATA membership.

About 24 airlines operate within the West African sub-region with a relatively young population of about 300 million. However, though operational efficiency and safety is high among various airlines in Ghana and the sub-region, just five airlines are IATA-certified.

Aside from the two Ghanaian carriers, Nigerian airlines Arik and Aero, and Lomé-based Asky Airlines are the other IOSA certified airlines.

According to the International Air Transport Association (IATA) — the global trade association for the airline industry with over 250 member-airlines which comprise 84% of total air transport — the IOSA programme is an internationally recognised and accepted evaluation system designed to assess the operational management and control systems of an airline.

The attainment of IOSA certification means that indigenous carriers can now compete favourably with their peers in the sub-region for big-ticket international-organisation clients.

It will also make it possible for them — Starbow and AWA — to enter into commercial agreements with foreign carriers like KLM, Lufthansa, BA, Tap Portugal, Emirates and others to handle passengers travelling on itineraries that require multiple airlines.

For instance, passengers travelling from Frankfurt in Germany to Kumasi via Accra or from London to Takoradi through Accra. Domestic carriers can partner foreign airlines to operate the domestic end of such travellers’ itineraries.

“We intend to deepen our partnership with South African Airways (SAA) given the attainment of IOSA certification. One of the things that was preventing us from doing the code share was getting this IOSA certificate. So once we have it, we are working at deepening it so we have a better code share,” said Samuel Thompson, Chief Operations Officer of AWA.

“Our current fleet is not very suitable for the regional flights so we are looking at getting something bigger, like a medium-haul aircraft with a seat range of about 120-160, then we will start doing Lagos, Abuja, Monrovia and Freetown. We will still do what we are doing and improve on our safety, management systems, and our quality management systems,” he added.

Mr. Eric Antwi, the Chief Executive Officer of Starbow — whose company received its IOSA certificate in September 2015, noted that: “When this is through it will increase our business with other airline service providers who will give us passengers and vice versa.

“We are happy to be among the listed airlines which include major intercontinental and regional carriers that have successfully gone through this rigorous auditing process.”

The IOSA certification audit is an internationally recognised and accepted evaluation system designed to assess the operational management and control systems of an airline, with emphasis on universally accepted best practices in the Airline industry.

IOSA uses internationally recognised audit principles and is designed to conduct audits in a standardised and consistent manner.

Source:Business and Financial Times