MINISTRY OF AVIATION
MEET THE PRESS PRESENTATION,
6TH MAY,2008
BY:
HON GLORIA AFUA AKUFFO (MISS)
MINISTER FOR AVIATION

OUTLINE

INTRODUCTION
MANDATE
MISSION/VISION
FUNCTIONS
POLICIES
AGENCIES
PERFORMANCE
CHALLENGES OF THE INDUSTRY
WAY FORWARD

INTRODUCTION

ESTABLISHMENT OF MINISTRY OF AVIATION
Though the Ministry was gazetted in 2004 it became operational in June, 2006, i.e. almost 2 years ago.

The Aviation sector used to operate as a Division within the Ministry of Transportation and later moved to the Office of the President in February, 2005.

MANDATE OF THE MINISTRY

To ensure maximum safety of the Aviation industry in the country; Restoration of Ghana Civil Aviation Authority (GCAA) to FAA Category one status by 31/12/06; Ensure strict adherence to International Civil Aviation Organization (ICAO) Standard And Recommended Practices (SARPS) as well as Yamoussoukro Decision and Banjul Accord;
Ensure that all Bilateral Air Services Agreements (BASA) are regularly reviewed and strictly adhered to:

Ensure the institution of an Aviation Sector Policy by June, 2007;

To ensure the decoupling of Ghana Civil Aviation Authority (GCAA) into two separate entities-GCAA and Ghana Airports Company Limited (GACL) by 30/06/06 and GACL establishes itself as a viable company by 31/12/07;

Ensure that there is a Ground Handling Company when Aviance Ghana Limited contract expires by October 2006 to ensure continuity of services;
Ensure that GIAL establishes itself as a reliable and credit worthy National Carrier by 31/12/06 and complies with all IATA SARPS;

Ensure that Ghana International Airlines Limited (GIAL) operated in at least five countries on the West Africa Coast and at least two other European countries by 31/12/06;

Ensure that on-going restructuring of GIAL is completed by 31/07/06;

Ensuring that reports of activities of the Ministry reach the Office of the President three weeks after the end of each quarter.

NATIONAL DEVELOPMENT FRAMEWORK

The Ministry derives its policies from the three thematic areas of the Growth and Poverty Reduction Strategy II (GPRS II), namely:
- Private Sector Competitiveness
- Human Resource Development
- Good Governance and Civic Responsibility

MISSION

To promote a competitive, efficient and cost effective Aviation sector whilst ensuring safety and security standards as well as an orderly growth of air transport to support social and economic development whilst minimising the negative impact on the environment.

VISION

The vision of the Ministry is to make Ghana an aviation hub and gateway to the West African sub-region by the year 2015.

FUNCTIONS OF THE MINISTRY

Developing aviation sector policy
Granting approval for the licensing of air transport operations except Air Travel Organizers License (ATOL) which is handled by the Ministry of Tourism;
Negotiating Bilateral Air Services Agreement with trading partners
Dealing with all other aviation related matters

AVIATION SECTOR POLICIES

Liberalizing air transport regulatory framework
Restructuring the existing institutional arrangements
Increasing private sector investment in infrastructure and equipment
Encouraging general aviation and support services
Ensuring high safety, security and environmental standards
Developing human resource and information technology

AGENCIES

The Policies and programmes of the sector are implemented through the following agencies:

Ghana Civil Aviation Authority (GCAA)
Ghana Airports Company Ltd (GACL)
Ghana International Airlines Ltd (GIAL)
Ghana Airways Company Ltd (In Official Liquidation)

FUNCTIONS OF AGENCIES

FUNCTIONS OF GCAA
Established under Ghana Civil Aviation Authority Act 2004 (Act 678). Functions include:
Aviation Safety and Security Regulation.
Provision of Air Navigation Services.
Air Transport Regulation
Advising Government on aviation matters.

FUNCTIONS OF GACL

Established under the companies code of 1963,(Act 179).Functions include:
Planning, Development, management and maintenance of all public airports/ airstrips in the country.
Facilitating aircraft, passenger, cargo and mail movements.
Coordinating the operations of other agencies that provide support services at the airport.

LOCATION OF AIRPORTS & AIRSTRIPS

FUNCTIONS OF GIAL

Ghana International Airline Limited was established in November, 2004 and became operational in October, 2005.

Shareholding:
GOG - 7o%
GIA-USA LLC - 30%
Start up Capital - US $ 7 million

To carry out international and domestic air transportation.

GHANA AIRWAYS IN OFFICIAL LIQUIDATION
This airline is currently under liquidation which is being administered by the Registrar- General through PriceWaterhouseCoopers as advisers

PERFORMANCE/ACHIEVEMENTS

INSTITUTIONAL RESTRUCTURING:

The GCAA has been decoupled since January, 2007 resulting in:
A new GCAA responsible for air transport regulation and air navigation services.
The establishment of GACL.

SAFETY AND SECURITY

Three state of the art fire tenders have been procured to deal with emergencies and rescue operations at KIA and the regional airports.

Security screening equipment have also been installed at the airport KIA and the regional airports. With the assistance of Her Majesty’s Customs Department of the United Kingdom “Operation Westbridge”, security alertness has been raised KIA.

Immigration and Customs services are available the regional airports as and when required Federal Aviation Administration (FAA) has agreed to participate in the last phase of Certification of the National Carrier.

The US Department of Transportation (DOT) under their “Safe Skies for Africa Initiative” has signed a Joint Statement with the Ministry of Aviation to assist Ghana re-attain its FAA Category 1 Status.

A Memorandum of Understanding (MOU) is about to be executed by the FAA and GCAA in furtherance of the Joint Statement.

GACL/GCAA conducted a successful Mock Search and Rescue Exercise for aircraft accident on sea in collaboration with Ghana Armed Forces, Police, National Disaster Management Organization (NADMO), 37 Military Hospital and other Government agencies in December 2007.This is to show the combat readiness of the agencies.
GCAA implemented corrective action plans following ICAO’s Universal Safety Oversight Audit Program (USOAP) in November 2006.

GCAA ensured improved safety oversight and air navigation services.

Intensified in-house and external training and general capacity building in safety and security oversight.

- The airline is currently operating the Accra- London route with 5 weekly frequencies.
- An average punctuality rate of 88.52% has been maintained since the beginning of this year.
- Average load factor for passenger for 2007 is 65% indicating a 20% increase over that of 2006.
- Direct operating cost is 86% of the total operating cost
GIAL – LEASED AIRCRAFT

The two domestic carriers CTK and Antrak are expanding their services to the sub-region

CTK operates some charter services in addition to scheduled services.

DOMESTIC PASSENGER THRUPUT 2003-2007
GROUND HANDLING SERVICES

Two Ground Handling companies Aviance Ghana Ltd and Aviation Handling Services (AHS Menzies) have been licensed at KIA to promote competition thereby enhancing efficiency.
GHANA AIRWAYS IN OFFICIAL LIQUIDATION

On 22 June 2005 the Government of Ghana (“GoG”), the sole shareholder of Ghana Airways Limited (GH), commenced the Statutory Liquidation of the Airline.
GHANA AIRWAYS IN OFFICIAL LIQUIDATION CONT’D
Total Liability - Over $ 200 million
Total Realizable Assets - $ 30 million

Total Assets realized to date - $ 23.9 million
Settlements so far made to validated creditors:
- Secured Claims - $ 1.8 million
- Unsecured Claims - $ 11.3 million
SEVERANCE PAYMENTS
- 47 Pilots and Flight Engineers fully settled at a total cost of US $ 1.4 million
- 1,199 General Staff including Cabin Crew qualify for severance payment at a cost of US $ 6.5 million which is being borne by Government.
- Government has so far released $ 2 million with
US $ 4.5 million outstanding.
- 1,024 out of the general staff have been partially settled at US $ 1.9 million.

- 20 out of the remaining 175 have rejected the OL’s offer since they are demanding that the calculation of their severance be based on their salaries at the out stations. The rest are yet to validate their claims.
- Ghana Airways (GH) staff with Airways Catering Limited (ACL) prior to ACL’s autonomy has also been partially settled. Claims by ACL staff engaged after autonomy have been rejected as they were not GH staff at the time of liquidation.
- The liquidation is substantially completed.
GENERAL AVIATION
ULTRA LIGHT OPERATIONS
A private micro-light aircraft company (WAASPS) in the Eastern region has embarked on the manufacture of two and four seater ultra light aircraft for pilot training, medical and agric support services.

The company has so far manufactured 4 aircrafts and is in the process of completing another 4 this year.

The Company has also embarked on basic training of Pilots in the Country on micro lights aircraft.

INTERNATIONAL OBLIGATIONS
ICAO Council Membership
African Civil Aviation Commission (AFCAC)

Cape Town Convention (Signed)
Yamoussoukro Decision (YD)
Banjul Accord
INTERNATIONAL CONFERENCES
36th Session of ICAO Assembly in Montreal
High Level Meeting on aviation safety plan in Africa and the Indian Ocean region in Montreal
African Civil Aviation Conference in Nairobi, Kenya
Aviation and Allied Business Leadership Conference in Accra, Ghana.
2nd Ministerial Meeting of African Ministers for air transport in Libreville, Gabon

Banjul Accord Group meeting in Accra
Air Transport Ministerial Conference in Addis Ababa, Ethiopia
Conference on the Development of the African Aviation Security Roadmap in Addis Ababa, Ethiopia
1st Meeting of African Ministers of Transport in Algiers, Algeria
CHALLENGES OF THE SECTOR
INFRASTRUCTURE
SERVICES
FINANCIAL
HUMAN RESOURCE

Inadequate Office Accommodation And Equipment For Ministry

Inadequate Transit Facilities At KIA
Inadequate Aircraft Maintenance Facility
Inadequate Facilities At Domestic Airports (Eg. Fuel Facilities, Runway Lights Etc)

Inadequate Provision & Rehabilitation Of Airstrips
Inadequate Cargo Handling Facilities At KIA ie. Lack Of Cold Storage Facilities, Warehouses, Cargo Scanner Etc
Inadequate Links With Ground Transportation
Inadequate Supply Of Utilities

- Lack Of Title To Airport Lands
- Encroachment On Airport Lands
- Need For An Efficient & Reliable Home -Based Carrier
- Litigation Between Shareholders Of GIAL Hampering Private Investment
- High Fuel Prices
- Inadequate Fuel Storage Facilities At The Airports
- High Air Fares

FINANCE
INADEQUATE FUNDING:
Budgetary Allocation For Ministry
Infrastructure Development
Domestic Airlines
General Aviation
GIAL (Under Capitalization)

HUMAN RESOURCE DEVELOPMENT
Inadequate Staff For The Ministry
Inadequate Management & Technical Skills
Inadequate Training Institutes
KEY EXTERNAL THREATS
The sector also faces key external threats. These include the following:
Terrorism, Drug Trafficking and related offences
Request by some neighbouring countries to co-manage the Accra Flight Information Region (FIR) or take control of their respective portions. This will reduce revenue.
Inadequate/ lack of cooperation among African Countries/Carriers
WAY FORWARD
REGULATORY FRAMEWORK
Development of Aviation Sector Policy based on National Transport Policy (In Progress)
Post Decoupling Review
Continuation of air transport liberalization
Restoration of Ghana to FAA Category 1
Approvals for Air Travel Organizers (ATOL) Licence to be ceded to Ministry of Aviation
Ratification of various Conventions.ie Cape Town Convention etc.

INFRASTRUCTURE

SERVICES
- Continued Government support pending resolution of the Litigation between the shareholders of GIAL to allow for private investments
Acquisition of aircraft as well as Certification of Ghana International Airline Ltd
GIAL Cooperation with other airlines ie. Alliances, Code Share etc
Increase in General Aviation operations (workshop on General Aviation,8th-9th May, 2008 at Fiesta Royale)
FINANCE
- Enhance commercial activities to increase revenue for development
Increase Private Sector Participation in development of airport infrastructure and services
Seek Donor support for aviation development
Increased budget allocation to Ministry
HUMAN RESOURCE
- Continuous training for staff on aviation matters.
- Establishment of Aviation Training Institutes

- Encourage private sector to establish training institutes to develop needed human resource.
- Posting of additional staff to Ministry

THANK YOU

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