Government edges closer towards establishing a third national carrier next year

After the failure of national airlines- Ghana Airways and Ghana International Airline- the country is making another move towards flying a new national carrier next year.

The Ministry of Transport is currently working to put in place a transaction advisor that would screen prospective investors that want to partner the state in establishing the airline.

Multinational accounting firm, PriceWaterhouseCoopers (PwC) is likely to get the nod to advise government in the investor selection process, according to Joy Business sources.

If selected, PriceWaterhouseCoopers will advice government on whether the country’s stake in the airline should be in the form of a management contract, equity investment or partner with a strategic investor.

Minister of Transport, Dzifa Ativor said she is hoping the World Bank approves the selection of PwC as transaction advisor.

Government is hoping to own about 10 percent stake in the new carrier while the strategic investor takes up the rest. 

The proposed stake in the new airline is far lower than the 70 percent it had in Ghana International Airline which collapsed in 2010.

This is according to the Minister of Transport, who said PwC was the only company that showed interest and submitted a bid.

The national airline will be run on a public-private-partnership basis, and the PwC is expected to advise government on the ownership structure, funding, business model and routes among others.

Ghana Airways, which was created in 1958 was liquidated in 2005. It was succeeded by Ghana International Airlines also in 2005, but folded up in 2010.

Analysts believe in both failures, mismanagement, corruption, nepotism and cronyism as well as overly-liberal ticketing privileges for government officials and staff, were to blame.

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