The Aviation Rivalry

There is a subtle but stern competition between Ghana and Nigeria in the race to become the travel hub of the sub-region, driven by carriers seeking to establish a foothold in the two fastest-growing economies of West Africa. The Global Market Forecast 2011- 2030 conducted by Airbus, the world�s leading aircraft manufacturer, projects that Accra and Lagos will be aviation �mega cities� come 2030 -- with the two destinations handling more than 10,000 daily long-haul passengers. Airlines� quest for dominance in these countries is fuelled by strong economic growth in the two countries, and the resulting increase in standard of living. In 2011 Ghana�s economy grew at 14.4 percent, boosted by discovery and production of oil in commercial quantities and a rebounding construction sector. Growth in GDP for 2012 is expected to reach 9.4 percent. Ghana�s aviation industry, with an average growth-rate of 10 percent, is one of the fastest growing and most competitive in the West Africa sub-region. Total passenger throughput grew from 0.6million in 2000 to 1.8million in 2011. The Ghana Airport Company Limited (GACL) estimates that the number of carriers has increased from 15 in 2000 to about 40 this year. Though Ghana lacks a successful airline of its own, there is a strong foreign airline presence in the country: Royal Jordanian Airlines and Iberia are expected to join by June. With the projected growth in the industry, airlines are adjusting their services and operations. Delta, Brussels, and United Airlines are adjusting their operations in order to position themselves to take advantage of the growing industry in the sub-region. Emirates Airlines and Air Nigeria are the two biggest carriers measured by capacity in the country. They average about 7,000 and 5,000 respectively in passenger throughput weekly. Delta Airlines is strengthening its hold in Accra. Last year, to handle customers it constructed two new gates that will support its flights from Atlanta and JFK to Accra. The investment was supportive of Delta's position in Accra, where it is now the third-largest carrier in terms of capacity. Iberia Airlines, in collaboration with British Airways, is set to commence a direct flight from Madrid to Accra on July 17 this year and will start with two flights a week between the two cities. Domestic couriers Starbow and Fly 540 are also to commence regional flights to countries in the sub-region soon. The regulator, Ghana Civil Aviation Authority (GCAA), has urged local airlines to take advantage of the growing opportunities which exist in the West African sub-region. �There is great potential in the aviation sector in West Africa. This presents an opportunity for domestic carriers to explore the possibility of operating regional flights,� Air Commodore Kwame Mamphey (Rtd.), Director-General of the GCAA, said. �The industry is very viable and we will encourage Ghanaians to invest. Ghanaian companies should be in the lead of this investment drive. With regard to the local-content component, as much as possible we make sure we get more Ghanaians involved in aviation operations.�