The Director General of the Civil Aviation Authority (GCAA), Rev Stephen Wilfred Arthur, has hinted that at least two new airlines could join the domestic aviation market by next year.
According to him, this is subject to the airlines meeting the ongoing certification process by the Ghana Civil Aviation Authority.
The Director General of the GCAA disclosed this on PM EXPRESS BUSINESS Edition.
Rev. Arthur noted that “We still have that hope that those currently going through the five phases of certification could be completed on time for them to join the current operators”.
“We are hopeful when all these players come on board, that could go a long way to reduce fares and bring on board the required options for consumers within Ghana”, he added.
He was, however, quick to state that even though his outfit is encouraging more airlines, it will not compromise on safety in the regulator’s quest to stimulate competition in the aviation industry.
There are currently two airlines operating in Ghana’s domestic aviation market, down from the era where there were about five carriers.
Rev Arthur also mentioned other issues that led to some airlines collapsing, but not due to the unfavourable regulatory environment and taxes.
“W could look at lack of capital, board room wranglings, corporate governance issues and possibly cost of aviation fuel”.
High Domestic Fares
On concerns of high domestic airfares, Rev. Arthur said it will be difficult for the regulator to direct the airline on how to price their tickets, “but we believe that with effective regulation, competition and market forces, that could help to reduce prices”.
The Director-General also revealed moves by the government to recently remove duties and taxes on spare parts for domestic airlines, saying, it is one of several measures being taken to reduce the cost of doing business for these domestic carriers.
He also added that the GCAA is working hard to improve the environment to attract more players, “because we cannot develop all these infrastructures and at the end of the day it is very difficult for people to fly in the country”.
“We are also working to improve the economy around this aviation infrastructure that government is building in the country,” he concluded.
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