Today a break through in African Aviation took place in Accra, Ghana. An agreement was reached between the new Ghana International Airlines and Ethopian Airlines to come in as an investor with equity for a 20% stake in the airline.
Here is the press release:
Ghana International Airlines Limited and Ethiopian Airlines Enterprise announce investment and comprehensive partnership
ADDIS ABABA, Ethiopia and ACCRA, Ghana – May 31, 2005 - Ethiopian Airlines Enterprise (“Ethiopian”), The Republic of Ghana (“Ghana”) and Ghana International Airlines Limited (“GIAL”) today announced that Ethiopian has reached agreement with the founding shareholders of GIAL on an equity investment in GIAL and a comprehensive partnership.
Under the terms of the agreement, Ethiopian will make a substantial cash investment in GIAL and receive 20% of the capital stock of GIAL. The two airlines will also team up to offer a wide ranging code share and alliance agreement that will enable their passengers to have better access to the combined worldwide network of the two airlines. The partnership will also give GIAL access to Ethiopian’s proven technical, commercial and management expertise and training facilities through a services agreement.
Ghana, as one of the two founding shareholders of GIAL, expressed its pleasure with the progress of GIAL and the addition of Ethiopian as a partner in the new national flag carrier based out of Kotoka International Airport in Accra. Speaking in Accra, Kwadwo O. Mpiani, the Chief of Staff and Minister for Presidential Affairs, commented that, “Ghana believes that Ethiopian Airlines can and will add tremendous strength to the start up of Ghana International Airlines as it is an experienced well managed airline in Africa”.
“Ghana International Airlines is excited about reaching this agreement with Ethiopian, the most respected name in African aviation”, said J. Ralph Atkin, Chief Executive Officer of GIAL. “Ethiopian’s eastern hub in Addis Ababa is a perfect complement to our planned western hub in Accra and makes them a natural fit as a partner for us.”
Girma Wake, Chief Executive Officer of Ethiopian, commented, “This partnership is a major milestone in the aviation history of Africa. It will create an exemplary success model for cooperation between Africans in the spirit of Pan-Africanism”.
Ghana International Airlines Limited is the newly designated flag carrier of the Republic of Ghana. Incorporated in late 2004, GIA plans to develop Accra as the “Gateway to Africa”, providing connections from Europe and North America to Accra and onward within Africa.
Ethiopian Airlines Enterprise is the national carrier of the Federal Democratic Republic of Ethiopia. Founded in 1945, Ethiopian today operates a fleet of modern Boeing aircraft on a route network centered at Addis Ababa that covers Africa, Europe, Middle East, Asia and North America.
MEDIA CONTACT INFORMATION
The Republic of Ghana: email@example.com
Ghana International Airlines : firstname.lastname@example.org
Ethiopian Airlines : email@example.com
It's great to see GIAL doing well already. This agreement with Ethiopian can only be a good thing. Like the CEO of GIAL has has said, Ethiopian are a very reputable carrier in Africa. The alliance will help get the Ghana brand out into the world on good legs and of course, since the long haul fleets are Boeing, technical resources can be shared between the two.
I like the idea of the airlines working together instead of being bitter rivals. Working to provide a good route network and a better gateway to Africa. East and west, left and right. They seem to fit together like a glove. Let's see what happens.
This is a historic time for the African aviation market. Two African carriers are joining forces to create world-class airline product offerings that the continent has deserved for so long. I wish ET and G0 well, and look forward to one day making a pilgrimage to the Motherland onboard their aircraft.
I think GO operation to the east will be solved by codesharing with ET on their middle east/asia network. GO will concentrate itself on west african flights with ET codeshare on it, at least for the beginning.
Yesterday, North American Airlines, a subsidiary of World Airways, announced the start-up of nonstop service JFK-ACC on a 767-300ER, beginning July 1. The flight will initially be on weekends only but they stand ready to expand if the demand is there. www.northamericanair.com