News

Friday, March 11, 2016

Gov’t to withdraw subsidy for GIA
Audrey Micah, Ghanadot

Accra, Oct 22, Ghanadot - Government has indicated it will cut off all forms of support to the national carrier Ghana International Airlines (GIA) at the end of this year.

The airline, which has been a loss making business entity since inception, has been on a $1.5million monthly subsidy from government.

It has only been able to survive because of government funding, which it has augmented with some commercial loans.

Confirming this, Mr. Hammah, Transport Minister in an interview on Joy FM said government has had to take the decision because it can no longer continue to pay the $1.5 million operational support GIA requires every month.

According to him, the decision was reached at Cabinet meeting early this month after some months of wrangling over whether the airline should be kept afloat or allowed to crash-land.

This will be the second such ultimatum given managers of the airline since the current administration took over.

The Transport minister said it was appropriate government served the national carrier an earlier notice to ensure its smooth weaning off state subvention.

“It is also important that we also give them enough time to organise themselves and see how best they can sustain their operations,” he said.

“Within three months we believe that should be able to wean themselves off government support, and once they do that they can continue their operations.”

The airline’s management has therefore been given up till December to come out with a plan that will make it self-sustaining.

Ghanadot