As the new government contemplates the idea of establishing a new national airline, aviation analyst Sean Mendis says the track record of the country in the management of the defunct Ghana Airways raises concern about the viability and sustainability of the new idea.
Sean Mendis says there is no business case for the government to run an airline, as the historical records do not favor it.
Speaking to The High Street Journal, the aviation analyst further argued that it is not even advisable for the government to compete against its own taxpayers. His concerns mirror those of many industry observers who fear that the initiative could end up being another state-run failure, burdening taxpayers while struggling to stay afloat in a highly competitive industry.
“The point then is that the government believes that it is better able to run an airline using taxpayer money than the existing airlines are. Whether this is in comparison to domestic airlines like AWA and Passion Air or international ones like United or Emirates, the government has a woeful track record in this space,” he indicated.
He continued that, “it also begs the question of why the government thinks it is appropriate to use taxpayer money to compete in business against the same taxpayers.”
Indeed, Ghana’s past efforts at running a national airline paint a grim picture. The collapse of Ghana Airways in 2004 and Ghana International Airlines in 2010 were both marred by mismanagement, financial losses, and operational inefficiencies.
Despite these failures, the government has persistently pursued the idea of launching a new national carrier, Ghana Airlines, with plans for it to be operational soon.
Critics argue that this push is not grounded in sound economic reasoning but rather in political optics. Ghana’s aviation sector is already served by private and international airlines that meet demand effectively, raising the question of whether the state should be in the business of running an airline at all.
Other analysts and aviation stakeholders believe that the resources for introducing a new airline could be better spent on improving aviation infrastructure, such as upgrading airports, enhancing air traffic control systems, and providing incentives for private airlines to expand operations.
Moreover, state-run airlines across Africa have struggled to maintain profitability. Nigeria Air, Kenya Airways, and South African Airways have all faced financial crises, requiring repeated government bailouts. With Ghana’s economy already grappling with debt sustainability challenges, the question remains: Can the country afford to take on another high-risk state enterprise?
Without a clear business case, a successful track record, or a competitive edge against existing players, the viability of Ghana Airlines remains highly uncertain. If history is anything to go by, this may well be another venture that crashes before it ever truly takes off.
Sean Mendis insists, “there is no business case, no track record, and no likelihood of success.”
