The Government of Ghana has reached an agreement with Ethiopian Airlines to relaunch its national airline with a 49% stake going to the investors.
Africa’s largest airline is advancing this partnership in line with the West African country’s nonstop efforts to rejuvenate its aviation sector, and the East African country’s relentless developments to expand its services across the continent’s aviation space.
According to the Ethiopian Reporter, the coming airline will be home-based, and Ghana, as well as its private sector, will have a minimum of 49 percent stake in the development.
Ethiopian Airlines will hold the balance of the percent interest in the new national facility. Tewolde Gebremariam, the CEO of the aviation company, said that the final agreement was signed last week.
Other contenders that had put forward proposals included Turkish Airlines (TK, Istanbul New) and Air Mauritius (MK, Mauritius).
Ghana lacks a national airline, and that has been so since the basket case that befell the Ghana International Airways in 2010. As Africa’s tenth largest country and home to more than 30 million people, the country is in need of a dependable aviation hub.
A burgeoning economy and abundance of resources in the nation, among other positive factors, contribute to making Ghana a hot spot in the continent.
September 2015, Ghana opened the Terminal 3 of the Kotoka International Airport, after relevant tests and simulation exercises have been completed. The launch of the ultra-modern terminal saw the arrival and departure of hundreds of passengers, many of whom described the flights as smooth and stress-free.
While Ghana has made significant changes at Take me, Wa and Ho airports as of recent, the new state-owned development is expected to operate domestically, regionally and internationally flight-wise.
The airline’s name is yet to be revealed; the deal is undoubtedly a significant move that expands the continent’s aviation space, where Ethiopia currently holds large market shares in state-owned airlines through buy-ins.
The sources say, under the agreement signed last week, Ethiopian Airlines will hold a 49 per cent stake in the new entity, while the Government of Ghana (GoG), will hold the rest of the shares; invest initially in the new enterprise,https://t.co/69hEL7bRnI
— GH-Aviation ✈️ (@ghAviation) May 13, 2019
Ethiopian Airlines has a 49 percent stake in Malawian Airlines, the East African nation’s national carrier, and a 45 percent stake in Zambia’s national airline.
The agreement with Ghana is a testament to the fact that the airline wants to reposition itself in the growing competitive aviation reality if Africa, where non-African airlines hold the highest number of passenger traffic.
Ghana International Airways – formerly called Ghana Airways – came to a halt in 2010 due to mismanagement. After a related USD 160 Million debt and rumoured management hitches, Ghana’s government seems not to want to be a victim of its past by gearing for a new national carrier with better plans.