Business News of Saturday, 8 December 2018
Source: citinewsroom.com
2018-12-08
Joseph Kofi Adda, Aviation Minister
Aviation Minister, Joseph Kofi Addah has clarified that the government is yet to conclude the processes that will lead to the selection of a partner for the new home based carrier.
According to him, the Memorandum of Understanding (MoU) with Ethiopian Airlines is but one of the numerous agreements signed with other interested airlines.
Recent media reports have stated that the government had settled on Ethiopian Airlines as the preferred partner.
But Mr. Addah says the process is not complete yet.
Citi Business News understands that a similar MoU has been signed with Air Mauritius, Abu Dhabi Airlines to assess their demonstration of ability to manage the new facility.
“Ethiopian Airlines will be coming in as minority shareholders; they’ll be contributing aircrafts as well as management services because they are good at that and they’ve done it for so long and we have been out for such a long time. It is about time that we build our capacity and come back up to a level where we can take over from them.”
On the shareholding structure of the new entity, Mr. Adda added the government will give 49 percent to the partner to be eventually selected: “We are looking at a share below 50 percent; all depends on what they bring unto the table i.e. aircrafts, funding, equity, etc. What we signed is the MoU, we will proceed with the shareholders’ agreement which we hope will be very soon.”
Local investors to take part
Meanwhile, of the 51 percent that the state is entitled to, the ministry is seeking to attract local investors to take up 41 percent of the stake.
This is expected to start with an investors’ forum next week.
“Ten percent of shares in the new national carrier will be reserved for the state of Ghana; the rest of the majority shares will be Ghanaian investors.”