Vfw614 From Germany, joined Dec 2001, 3997 posts, RR: 5
Reply 4, posted (12 years 3 months 3 days 6 hours ago) and read 2122 times:
Here the story, taken from ghanaonline.com. Looks as if only the U.K. operation is affected (not sure if they operate as a separate legal entity there):
"Information reaching Chronicle’s monitoring desk from UK says the offices of Ghana Airways (Ghanair) in Heathrow, London, and one of the airline’s DC-10 aircraft has been seized in faraway London. The seizure of the aircraft and the property was the result of a court action initiated by A.J. Walters Aviation and granted by a London court. A.J. Walters Aviation, a company which deals in aircraft parts, had filed a writ in court seeking order to attach Ghanair’s property in London to defray a $4.7 million debt owed it.
Chronicle’s sources at Viscount House Partridge Green, at West Sussex offices of A.J. Walters in London, admitted that the spare parts company had indeed seized the properties of the airline to defray its debt. The source said the action was the last resort instituted by Walters wasted no time in carrying out the order and they grounded one of the DC-10 aircraft, which had been flown out on Monday while the offices at Heathrow are also attached, making it impossible for Ghanair to do business there.
A.J. Walters is one of the companies which has a spare parts deal with Ghanair and the sources said the indebtedness of the airline to the tune of $4.7 million might have resulted from the spare parts deal. The genesis of the airline’s indebtedness was a result of a questionable spare parts agreement dubbed Power by the Hour signed by Ghanair with A.J. Walters Aviation on 18 February 2000. The agreement was to supply three of DC-9 rotable parts to the airline.
In the course of the agreement, Mr Joe Browne, the then deputy head of engineering and now second in command in the Management Task Force of Ghanair and former CEO Mr Emmanuel Quartey Jnr., even sold all the rotable DC-9 parts to A.J. Walters. To date, monies accrued from the sale of the rotable parts cannot be traced. Quartey later told a section of workers that the monies accrued from the sale of the parts had been used to reconcile an outstanding account with A.J. Walters.
While this agreement was being signed, the then head of engineering, Mr H. Atta Badu, who should have weighed the viability of the deal as the head of engineering was kept in the dark. The sad aspect of this agreement was that even Ghanair continued to pay for a DC-9 aircraft, which was parked in Nipole in Italy. Also, another DC-9 aircraft which crashed in Guinea and did not enjoy the supply of a single spare part over a year was also billed as long as the agreement was still operational.
A.J. Walters continued to bill Ghanair, including the aircraft that was not airworthy and out of operation. For example, DC-9 aircraft with registration number 9G ADY which crashed in Conakry, Guinea, in 2000, was always billed at the end of every month due to the nature of the agreement signed by Quartey and Browne with the support of Mr B.A. Donkor, the head of the legal department of Ghanair.
Another aspect of the agreement is that whenever Ghanair fails to pay at the end of the month, A.J. Walters surcharged it for late payment and this attracted 10 per cent per annum for 31 days which worked out to $26,985.81 a month and this has also led to the swelling of the debt to $4.7 million. The agreement was based on a minimum utilization of 192 hours per aircraft per month and this brought the number of hours by the three aircraft to 576 hours which is $335, and this means that Ghanair pays $195,000 for each of the aircraft a month. With this simple calculation, the figures swelled in no time.
Capt Kwakwa would not speak to the Chronicle when contacted on Wednesday to find out what management is doing to ensure the release of the aircraft and other serious issues bordering on the mismanagement of the company. But Chronicle sources at the Castle indicated that Ghanair officials have narrated the bad news to authorities concerned. The woes of Ghanair started with the appointment of Mr Emmanuel Quartey Jnr. Interestingly, Ghanair was always out to defend and even ran a number of advertisements through newspapers and international magazines painting a bright picture about the airline when the realities on the ground did not support this."
Konstantinos From Greece, joined Jun 2001, 389 posts, RR: 0
Reply 5, posted (12 years 3 months 3 days 3 hours ago) and read 2074 times:
$4.7mill is no reason for someone to ground an aircraft and make these poor airlines suffer and go bankrupt. Now I know what makes airlines go bankrupt. It's people like A.J. Walters who make lots of money off third world countries. They should be ashamed of them selves, a whole DC10 for ONLY $4.7mill !!! Unbelievable!
Cedarjet From United Kingdom, joined May 1999, 8093 posts, RR: 54
Reply 8, posted (12 years 3 months 3 days ago) and read 2017 times:
Konstantinos. Presumably Ghana Airways signed this agreement. They have to pay on time. It's not AJ Walters fault. "$4.7m is no reason for someone to ground an aircraft and make these poor airlines suffer and go bankrupt." But it's OK for airlines not to pay any invoices and let suppliers go bankrupt? If someone owed you $4.7m, would you let them get away with it or would you go after them? Although your grasp of economics makes it easier to understand why Olympic are completely screwed.
And finally, $4.7m is probably about what I'd expect to pay for a DC10.
fly Saha Air 707s daily from Tehran's downtown Mehrabad to Mashhad, Kish Island and Ahwaz