Ghana chooses EgyptAir over Ethiopian for new national airline
EgyptAir, the state-owned flag carrier of Egypt, signed a Memorandum of Understanding (MoU) with the government of Ghana under which the airline will become a strategic partner for the creation of a new Ghanaian national air carrier.
The MoU was signed by Joseph Kofi Adda, the Aviation Minister of Ghana, and Hassan Mounir, the Deputy Chairman of EgyptAir on October 21, 2020.
Speaking to local media, Amr Abu El-Enein, the Chairman and Chief Executive Officer of EgyptAir, said the airline is “pleased with the confidence of the Ghanaian government in choosing and preferring EgyptAir for this strategic partnership in establishing a new airline”.
The CEO of EgyptAir announced that the new national air carrier would be expected to operate its flights from the headquarters in Accra, the capital of Ghana. Amr Abu El-Enein also stated that the airline would fly regular routes throughout Africa, and connect it with countries in North and South America.
Earlier in 2018, the government of Ghana signed a similar MoU with Ethiopian Airlines, the state-owned flag carrier of Ethiopia. Under the MoU, Ethiopian Airlines was supposed to cooperate with the Ghanaian government in funding and management issues of the new national airline.
However, the Ghanaian government was reportedly concerned over Ethiopian Airlines’ suitability for further contribution after the parties did not reach an agreement over key issues such as routes, flight frequencies, funding aspects and tenure of the management. While both sides were struggling in seeking a unanimous solution, EgyptAir offered the government more favorable terms than Ethiopian did, reported local media.
The government of the country was considering holding 10% of shares in the new air carrier with the rest held by private investors.
Before implementation, the recent agreement between EgyptAir and the government of Ghana would need to get the state’s Parliament approval.
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