1. THE LIBERALIZATION EXPERIENCE: THE CASE OF GHANA
PRESENTATION BY
CAPT. JOE BOACHIE,
ACTING DIRECTOR-GENERAL,
GHANA CIVIL AVIATION AUTHORITY
AT THE SEMINAR ON “AVIATION IN TRANSITION: CHALLENGES AND OPPORTUNITIES OF LIBERALIZATION”
HELD AT ICAO HEADQUARTERS, MONTREAL, CANADA,
22 – 23 MARCH, 2003

2. 3. OPERATING ENVIRONMENT 4. GHANA’S EXPERIENCE * GAINS * IMPEDIMENTS
OUTLINE
1. INTRODUCTION
2. EXPECTED BENEFITS
3. OPERATING ENVIRONMENT
4. GHANA’S EXPERIENCE
* GAINS
* IMPEDIMENTS
5. CONCLUSION

3. INTRODUCTION
GOVERNMENT OF GHANA FORMULATES THE “VISION 2020” PROGRAMME IN 1995
FLOWING FROM THIS PROGRAMME IS A GHANA TRADE AND INVESTMENT GATEWAY PROJECT
STRATEGY: CREATION OF LIBERALISED ENVIRONMENT TO PROMOTE TRADE AND INVESTMENT TO ACHIEVE ACCELERATED ECONOMIC DEVELOPMENT IN GHANA
AIR TRANSPORT LIBERALIZATION ONE OF THE KEY AREAS IN THIS RESPECT
THE RESPONSIBILITY OF THE AERONAUTICAL AUTHORITY: TO IMPLEMENT AIR TRANSPORT HUB

4. EXPECTED BENEFITS ACCESS TO NEW MARKETS
IMPROVED EFFICIENCY OF AIR CARRIERS
ROUTES EXTENSION WITHOUT EXPLORATORY COSTS THROUGH COMMERCIAL ARRANGEMENTS e.g. STRATEGIC ALLIANCE, CODE SHARING.
INCREASED SAFETY AND SECURITY.
TRADE STIMULATION
INCREASED EARNINGS FROM TOURISM AND
INVESTMENT OPPORTUNITY

5. OPERATING ENVIRONMENT
ABSENCE OF STRONG HOME AIRLINE
LOW GNP PER CAPITA
SEVEN (7) YEAR TRANSITION
AFTERMATH OF SEPTEMBER 11TH (9/11)
CONDITIONALITIES OF INTERNATIONAL ORGANIZATIONS

6. GHANA’S EXPERIENCE
GAINS
GROWTH IN THE AREAS OF :
* TOURISM
* NON-TRADITIONAL EXPORTS
* AIR TRAFFIC MOVEMENTS
* PASSENGER THROUGHPUT
HUB PROGRAMME SLOW TO ADVANCE, EVEN THOUGH IMPROVEMENT IN INFRASTRUCTURE AND COMMUNICATION FACILITIES

7. GHANA’S EXPERIENCE (Cont.)
IMPEDIMENTS:
* HIGH AIR FARES ON OUR ROUTES
* VISA RESTRICTIONS

8. GHANA’S EXPERIENCE (Cont.)
SUBSTANTIAL OWNERSHIP AND EFFECTIVE CONTROL:
* SUBSTANTIAL OWNERSHIP AND EFFECTIVE
CONTROL CRITERIA HAS BEEN REVISED
* GOVERNMENT OF GHANA’S “PLACE OF
REGISTRATION AND / OR PRINCIPAL PLACE OF
BUSINESS”
* NEW POLICY NOT READILY ACCEPTED BY
BILATERAL PARTNERS
* DIFFICULTY IN ATTRACTING FOREIGN PARTNERS
* SOME BILATERAL PARTNERS PREPARED TO GRANT
WAIVERS BUT THIS DISCRETIONARY PRIVILEGE NOT
FULLY ACCEPTABLE

9. SELF HANDLING
LIBERALISATION ENCOMPASSES ALL ASPECTS OF THE AIR TRANSPORT SERVICES INCLUDING HANDLING OF GROUND CARGO AND PASSENGERS
AIRLINES EXPECT A MORE FLEXIBLE HANDLING REGIME THAT ENABLES THEM TO UNDERTAKE TO SELF HANDLE OR CONTRACT OUT TO THIRD PARTIES
SELF-HANDLING IS A RIGHT OF THE AIRLINES TO BE EXERCISED UNDER A LIBERALISED SYSTEM, SUBJECT ONLY TO SAFETY AND SECURITY CONSTRAINTS.
IN GHANA AS AT NOW, THERE IS ONLY ONE LICENSED GROUND HANDLING COMPANY.

10. SELF HANDLING (Cont.)
OUR OBJECTIONS FOUNDED ON THE FACT THAT PASSENGER AND CARGO THROUGHPUT AND INFRASTRUCTURE DID NOT SUPPORT MULTIPLICITY OF HANDLERS
HOWEVER, GOVERNMENT OF GHANA HAS INITIATED STEPS TO INTRODUCE COMPETITION IN BOTH CARGO AND HANDLING ACTIVITIES AT THE AIRPORT

11. PRICING (TARIFFS / FARES)
GHANA’S LIBERALIZATION POLICY PERMITS AIRLINES TO FIX THEIR OWN TARIFFS BASED ON MARKET CONSIDERATIONS
THIS REMOVES THE POWER OF GOVERNMENTS TO APPROVE FARES BEFORE THEY ARE IMPLEMENTED
IN VIEW OF THE ABSENCE OF COMPETITION LAWS REGULATING THE CONDUCT OF CARRIERS, GHANA HAS INTRODUCED A SINGLE DISAPPROVAL TARIFF REGIME IN ITS BILATERAL AIR SERVICES AGREEMENTS
THE RATIONALE BEHIND THIS IS THAT A COMPLAINT CAN BE RECEIVED FROM ANY PERSON, THE AERONAUTICAL AUTHORITY INTERVENES FROM THE FARE BEING IMPLEMENTED

12. PRICING (TARIFFS / FARES) – (Cont.)
THE PARTIES WOULD BE ENCOURAGED TO ENTER INTO CONSULTATIONS IN ORDER TO FIND AMICABLE SETTLEMENT
GHANA’S POSITION IS VERY OFTEN RESISTED BY THOSE NATIONS WHICH FAVOUR GREATER LIBERALIZATION AND HAVE ADOPTED DOUBLE DISAPPROVAL REGIME
THESE NATIONS ARGUE THAT TO ALLOW ONE PARTY TO INTERVENE STIFLES COMPETITION AND AMOUNTS TO GOVERNMENT CONTROL

13. CONCLUSION
IN CONCLUSION, WE BELIEVE THAT LIBERALIZATION IS GOOD AND GHANA’S EXPERIENCE HAS BEEN BENEFICIAL / POSITIVE. RESULTS ACHIEVED SO FAR INDICATE THAT WE ARE MOVING IN THE RIGHT DIRECTION. BEING A SMALL NATION, HOWEVER, THE PACE OF TRANSITION IS NOT AS FAST AS THAT OF A DEVELOPED NATION. HENCE OUR INSISTENCE ON CERTAIN SAFEGUARDS TO BE INSTITUTED UNTIL WE ACHIEVE AN APPRECIABLE LEVEL OF MATURITY.