Business News of Monday, 11 July 2016

Source: dailyguideafrica.com

Domestic Airlines lose GHC200k

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Domestic airline operators have begun counting their losses after a strike action on Saturday morning by air traffic controllers at the Kotoka International Airport grounded domestic flights.

According to the airline operators, the action has made them lose about GH¢200,000 due to refund of air transport fares to passengers.

The strike follows series of actions by the staff of the Ghana Civil Aviation Authority (GCAA) to protest against what they described as the failure of the aviation authorities to reclaim encroached lands belonging to the authority.

The strike was fueled by their dissatisfaction with the size of land offered them by the Ministry of Lands and Natural Resources after meeting them on Friday.

Commenting on the development to Citi News, the CEO of Starbow Airlines, James Eric Antwi lamented the discomfort local airline companies had to bear with any industrial action by the civil aviation staff.

He further noted that his company had recorded losses of almost GH¢150,000 due to the strike action.

“We cancelled three flights- these included flights to Takoradi and Kumasi. Well, if you talk in terms of money, it will cost between GH¢120,000 to GH¢150,000…So in terms of money and inconveniences, it’s been very bad,” James Eric Antwi stressed.

Ground Operations Manager at Africa World Airlines (AWA), Rainer Yeboah, on his part, said the action had impacted adversely on AWA’s operations.

“We had to refund monies to some passengers. Some customers were asking why we couldn’t fly them to their respective destinations, which of course was also beyond our control.

“I cannot give you the actual figures but we are talking of costs in the region of GH¢50,000.”