Minister: Govt to acquire minority shares in new airline

Mr Joseph  Kofi Adda,Minister of Aviation

Mr Joseph Kofi Adda,Minister of Aviation

The Minister for Aviation, Mr Joseph Kofi Adda, has disclosed that government will acquire less than 10 per cent shares in a public-private partnership arrangement to establish a new state airline.

He explained that the government’s decision to acquire the less than 10 per cent shares in a new state airline and the rest going to private investors was to avoid the mistakes that led to the collapse of Ghana Airways Limited – the country’s former flagship airline.

“Government does not intend to exercise control over a new state airline. It is for this reason that the ministry has invited potential strategic investors to consider acquiring shares in this new venture, whiles government maintains a “golden” share of not exceeding 10 per cent of the total shares allotted,” he noted.

The minister said this yesterday in Accra at the first major consultative meeting with privates investors who had expressed interest in the establishment of the state airline.

It was to brief the investors on progress made so far, as well as enhance existing relationships and how to implement the project.

The meeting was also to enable the investors come out with a model that would set the tone for the successful establishment of a vibrant and sustainable airline which would create job opportunities, generate wealth and open up the country for international trade and economic development.

Mr Adda said Ghana, with a population of approximately 28.8 million has 36 airlines currently operating from the Kotoka International Airport and comprised 24 international, two domestic and 10 cargo airlines.

“The country is strategically located in the centre of the world with the equator running through Tema at the eastern side of Accra, and the Greenwich Meridian goes through Bawku, thus, putting Ghana at the intersection of the world which makes it most accessible from all parts of the globe,” he said.

According to Mr Adda, in 2017 passenger throughput in Ghana was 2,294,689 which indicated a growth rate of 7.9 per cent whilst tourism also grew by 5.1 per cent.

This, he explained was an indicative of the fact that Ghana is fast becoming the destination of choice for investors, traders and tourist.

BY BERNARD BENGHAN                  

 

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