General News of Wednesday, 25 November 2009

Source: Chronicle

Row at GIA

… Frustrated Chief Pilot resigns
The Chief Pilot of the Ghana International Airlines (GIA), Mr. Eric Mills-Lamptey, has resigned from the ailing company, following a misundertstanding between him and the Chief Executive Officer (CEO) of the company, Ms. Anna-Myers.

Informatuion reaching The Chronicle indicates that following the directive from the government that the airline must acquire its own jet, a company, Spinoza Ghana Limited, was contracted to look for new airplanes for use by the company.

The decision was borne out of the realisation that the leasing of Astraeus aircraft, which the GIA is currently using, is imposing more financial burdens on the company.

This reporter was told that though Spinoza managed to get some of the planes for outright purchase by the GIA, Ms. Anna-Myers truncated inspection of the aircraft by a team of officers, led by the Chief Pilot, Mr. Eric Mills-Lamptey, on the grounds that the GIA did not have technical experts to inspect the aircraft for approval.

According to sources, this statement, by Madam Anna-Myers, infuriated Mr. Mills-Lamptey who has since resigned his position.

The frustration for the acquisition of the aircraft by Myers is said to have brought tension between her and Mr. Ben Numoh, the CEO of Spinoza, who is opposing the continuous use of leased aircraft, and its concomitant financial burden on the struggling airline.

In a petition to President Mills, dated October 27, 2009, Mr. Numoh indicated that the quantum of subvention the GIA could enjoy from the government, regarding the months of October, November and December this year, amounting to US$4.5 million, could be used to pay the deposit for two aircrafts.

He was emphatic that any indebtedness to Astraeus could be deferred for payment out of the operations of the two aircrafts.

“This arrangement would make it possible for GIA to have two aircrafts on dry leasing conditions by 1st January 2010, and consequently come into the strategic partnership with some clout,” he stressed.

His letter was in response to a letter written to Ms. Anna-Myers by the Minister of Transport, Mr. Mike Hammah, dated October 2009, which stated: “ We write to withdraw our earlier letter with ref. No. MoA.9/9/09 dated 14th October, 2009. Please be advised as follows:

Cabinet has decided that there is the need to give GIA sufficient time to restructure to become self-sustaining. Cabinet has therefore set the date for cessation of subsidy payment to GIAL at 31st December 2009. Cabinet was confident that the period was enough to allow GIA wean itself off Government subvention. The import of the letter is to convey the above cabinet decision to the management.”

Sources told The Chronicle that the leasing of Astraeus aircraft was supposed to be temporary, while the management looks for Boeing 767 aircraft, since that could be beneficial, and enable them to make profit.

Ms. Anna-Myers told The Chronicle that the GIA had at its disposal only one leased aircraft, but did not own one, because the shareholders had failed to buy one for the company.

“They had a business plan, which meant that they were going to buy, but then they started fighting. Our initial flight was 29th October 2005, but by April 2006 they were in court, so the business never took off,” she intimated.

She also argued that the leasing of 767 aircraft does not make economic sense, since the airline could not afford to pay the maintenance of such an aircraft.

Touching on the resignation of Mills-Lamptey, she said, he was on leave, and all of a sudden sent email to her that he had resigned his position as the Head of Operations and Chief Pilot, without giving any reason.

Though the deadline for the government to pull out from giving subvention to the airline is January 1, 2009, no proposal to partner the GIA has been brought forward by any company, but Madam Anna-Myers insists that she has been holding meetings with some potential partners outside Ghana, and that accounted for her constant trips abroad.

She argued that the company could not maintain an aircraft that belongs to them, because it would not be economic viable. “If somebody brought me a plane right for free, and parks it here today, we cannot fly it; we cannot run it; we don’t have the structures; we need money for the structures; without government’s guarantee we cannot buy it.”

The paper gathered that President Mills had written to Ms. Anna-Myers, and copied Spinoza, that she should give attention to the directions that had been offered by Spinoza, in their letter dated October 27, 2009.