Africa’s most profitable air carrier, Ethiopian Airlines, has signed an agreement with the Ghanaian government to establish a national airline in Accra, Ghana. The proposed airline will be a joint investment by the Ghanaian government, the private sector, and the Ethiopian airline. The ownership structure will consist of 10 per cent ownership by the Ghanaian government, 41 per cent by private investors from West Africa, and 49 per cent by Ethiopian Airlines.
Ghana does not have a national air carrier after Ghana Airways and Ghana International Airlines ceased to operate. In 2016, the government of Ghana invited interested parties to help establish a national carrier. Air Mauritius, Ethiopian Airlines, and Africa World Air expressed interest in the project. The government picked Ethiopian Airlines for the venture.
The Ghanaian airline is expected to start operating in the last quarter on 2019 or in early 2020. The airline will run domestic, regional, and international flights.
The partnership between Ethiopian Airlines and Ghanaian investors is likely to intensify competition in the West African airspace. African airlines that already operate in the region include; Kenya Airways, South African Airways, Air Burkina, and Rwanda air. Kenya Airways added 3 flights to its weekly schedule to Accra, Ghana in August 2018. The establishment of a Ghanaian Airline will most likely reduce KQ’s passengers from the West African nation.
