Ghana ahead of Nigeria in aviation hub race





Ghana appears to be leading in the race for the aviation hub in the West African region, despite Nigeria’s comparative advantage.Whereas both West African neighbours currently parade the “ease of doing business” initiatives of their governments, Ghana is making more progress with specific policies that are attracting more international airlines to Kotoka International Airport in Accra.
Experts are unanimous on the comparative advantages Nigeria has over Ghana in terms of passenger traffic, local airlines and infrastructure, among others. They are, however, concerned that the dormant state of the Nigerian aviation sector would adversely affect the economy.
Specifically, with foreign airlines fueling in Ghana and routing through the country, after picking passengers in Nigeria, ancillary revenues that would have gone to hotels and aviation agencies in Nigeria are now being made in Ghana. To reverse the trend, the experts called for aviation specific policies to stimulate activities in the sector and enhance growth for larger economic development.
Recall that the Ghanaian government over a year ago mapped out plans to ease means of doing business and attract foreign airlines to Accra. In partnership with the International Air Transport Association (IATA), the government slashed the price of aviation fuel by 20 per cent, remodelled the old Kotoka International terminal and subsequently removed Value Added Tax (VAT).
Today, several airlines operating on the West African coast find aviation fuel in Accra cheaper. South African Airways, for instance, now routes through the airport for direct flights to Dallas and Washington, in the United States. Meanwhile, on board these flights are over 50 per cent passengers from Nigeria.
The Local Operating Officer of one of the foreign airlines told The Guardian that the Ghana Aviation Authority (GAA) had gone steps ahead with the open doors and trade liberalisation policies.
“That is why everyone is finding Ghana attractive. Even our passengers find the Kotoka Airport more accommodating than what we have in Nigeria.“We have to give credit to the Federal Government with the new policy. To be honest, Nigeria is a very strategic traffic hub after South Africa, but still has a long way to go. I said that with all sense of responsibility as a Nigerian.Unfortunately, aviation business is high capital intensive with very little margin for profit. So, it is not done by sentiment. If the condition in Accra supports my business plan, why wouldn’t I go there?” the top official said on condition of anonymity.
Indeed, Nigeria commands many advantages to compete with established African hubs like Johannesburg (South Africa), Nairobi (Kenya) and Addis Ababa (Ethiopia) for the African air travel market.
For instance, Nigeria sits at the trigger point of the continent and the shortcut (about six-hour travel time) to the rest of the world. With 170 million plus population, internal movement of about 15 million passengers (just eight per cent of the population) is second highest after South Africa. Besides, no other country can boast of eight local carriers like Nigeria, airports as many as 26 scattered across the country and being the sixth largest producer of crude oil (for JetA1) in the world.
The Chairman of the Airline Operators of Nigeria (AON), Capt. Nogie Meggison, said there was no doubt about the huge potential at the disposal of the country, but this would continue to be potential until Federal Government comes up with a deliberate economic policy to help grow the aviation subsector.

POSTED BY:OPUOMONI PRIYE
DATE:06/23/2017

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