CUTS International Ghana, is urging government to put in the necessary conditions needed to attract investors into the domestic aviation industry.
The assertion comes on the back of the collapse of some domestic airlines, leaving the Africa World Airlines as the only domestic airline operator.
Speaking to Citi Business News on the matter, Country Coordinator for CUTS International Ghana, Appiah Kusi Adomako said new entrants into the domestic space will not survive if the issue of high operating cost is not addressed.
Mr Adomako also stated that the collapse of four domestic airlines in the country was as a result of unfavorable macro economic conditions in the country.
“The macroeconomic environment forced most of the players out of the market and so if we want to bring in more players into the market, we must make sure that things are stable; because in running an airline business, almost everything related to aircraft is imported into the country and even sometimes we even have to rely on expatriate pilots and we have to pay them huge sums of money”.
He added, “So if the cedi is not strong I think that it will increase your operational cost and in business, operational cost is always passed onto consumers.”
Mr Adomako stressed that government’s plan to expand the domestic aviation sector will fail if the environment is not suitable for them.
“So we need make sure that the operating environment is good for every business in the environment such that it is able to operate more and consumers can also enjoy the benefits of it”
The Minister of Aviation, Cecilia Daapah has announced that government will soon complete processes to allow new entrants into the domestic airline space.
–
By: Anita Arthur/citibusinessnews.com/Ghana
