Aviation Authority Incurs 95% Loss In Revenue Due To Ban On Foreign Travel

19-06-2020

Aviation Authority Incurs 95% Loss In Revenue Due To Ban On Foreign Travel

The Ghana Civil Aviation Authority (GCCA) has revealed that it has lost nearly 95 percent of its revenue income due to the novel Coronavirus inflicted ban on foreign travel.

Director General of the GCAA, Simon Allotey, speaking in an interview with Citi Business News lamented the authority has not been spared the wrath of the pandemic and has to make some stringent pay cuts to survive.

“It’s impacted adversely on our finances because the bulk of our revenues were from the landing fee, the on roads or what we call, the overflights. The bulk of our revenues are also from the safety charges for both passengers and cargo, and most of these revenues have dwindled to zero. So, if you look at the revenues, we had from these few exemption flights, I’d say we’ve lost about 95% of our normal revenue.”

“If the plane does not fly, there is no revenue to the Authority. Of course, there are other fees we charge the airlines like the validation of the foreign air operator certificate which is done every two years. Apart from that, almost everything is based on aircraft movement,” Simon Allotey explained.

Despite government’s resolve to repatriate some stranded Ghanaians citizens due to the closure of land and air borders in the wake of the pandemic, the GCAA says the move will not be enough to meet its budget expenditure.

Foreign Affairs Minister, Shirley Ayorkor Botchwey, yesterday June 16, 2020 at the Ministers press briefing disclosed that some 856 Ghanaians citizens who had been stranded abroad due to the pandemic have since returned.

Meanwhile, the International Air Transport Association (IATA) releasing its latest financial outlook for the global air transport industry has said airlines are expected to lose US$84.3 billion in 2020 for a net profit margin of -20.1%.

According to the aviation body, revenues are expected to fall some 50% to US$419 billion from US$838 billion in 2019. In 2021, losses are expected to be cut to US$15.8 billion as revenues rise to US$598 billion.

 

Source: https://www.ghanaweb.com/GhanaHomePage/business/Aviation-Authority-incurs-95-loss-in-revenue-due-to-ban-on-foreign-travel-982810

 

GNBCC | News