GCAA to lose 52% of revenue as Togo, Benin intensify plans to exit air space
The Ghana Civil Aviation Authority (GCAA) risks losing more than half of its annual revenues should neighbouring Togo and Benin succeed with their planned exit from the Accra Flight Information Region (FIR).
The authority currently earns about 52 per cent of its internally generated funds (IGFs) in its capacity as the air navigation services provider (ANSP) for the region on behalf of Togo and Benin. Therefore, a successful exit of the two countries from the region, as is being pushed for, will mean that the authority will automatically lose such revenues.
Already, the GCAA, which regulates the country's aviation industry, has started realigning its budget in anticipation of a drop in revenues over the development, the acting Director-General, Mr Abdulai Alhassan, said in an interview.
"All our budgeting, planning and expectations are done with that in mind; we try to look at various scenarios that will affect revenues," he told the paper.
Togo and Benin have been pushing to move out of the FIR, which comprises the upper airspaces of Ghana, the two countries and a large area over the Atlantic Ocean in the Gulf of Guinea. The exit is to enable them to individually manage their respective country airspaces instead of entrusting it to Ghana.
Their intentions were first disclosed in 2012 but are yet to be realised due to intense negotiations between Ghanaian authorities, led by President John Mahama and the Minister of Transport, Madam Dzifa Attivor, and their Togolese and Beninois counterparts over the years.
Checks by the paper at the Ministry of Transport revealed that the issue was up for discussions by the presidents of the three countries at last month's ECOWAS meeting in Accra, where it was concluded that Madam Attivor follows up for further negotiation with her two counterparts in early October.
The Chief Director of the ministry, Mr Twumasi Ankrah-Selby, however, explained in an interview that the proposed follow-up had been stalled by international assignments, which have made it difficult for the three ministers to agree on a common time.
"We are hopeful that they will meet within the next few weeks and iron out whatever differences for us to see the way forward," he said, explaining that discussions on the matter had so far been cordial.
Concerns of Togo, Benin
Currently, the FIR is under the watchful eyes of the GCAA, which was established in 1930 then as a unit under the defunct Public Works Department (PWD) but metamorphosed into an authority in November 2004.
The authority assumed that responsibility decades ago when the aviation sectors in Togo and Benin were not advanced enough to be able to properly manage their respective airspaces. Also, the International Civil Aviation Organisation (ICAO), which regulates the global airspace and directs air traffic, advocates that the airspaces of neighbouring countries be clustered and managed by one country or co-managed.
As a result, the GCAA assumed the responsibility of the ANSP for the FIR and, in that capacity, manages and regulates flight traffic in the area to facilitate free flow of aircraft to and from that location on behalf Togo and Benin.
Therefore, revenues accruing from the region in the form of fees and commissions from airlines go directly to the authority, which in turn uses it to fund expenses incurred through the provision of air navigation services.
This is seen by Togo and Benin as disingenuous to their respective aviation industry, hence their current stance.
"Their concern is that over the years we have been benefiting from the revenues and not giving them. Now, they also want the revenues," Mr Alhassan said in response to what he thinks is the reasoning behind the attempt to exit from the FIR.
"Also, they (Togo and Benin) are controlled by Agency for Aerial Navigation Safety in Africa and Madagascar (ASECNA) and the agency is saying that they can manage the airspace on their behalf and so they are pushing for that," he added.
ASECNA, which is based in Dakar, the Senegalese capital, currently controls about 16.1 million square kilometres of airspace over six FIRs. Its area of operation covers 18 countries, including Togo and Benin, which are Ghana's two immediate neighbours to the east.
ICAO rules favours co-management
Although the GCAA and the Ministry of Transport are aware of the implications of their exit from the region on the aviation authority and the country in general, they are hopeful the two countries will soften their stance and opt to a co-management agreement, which the ICAO has been pushing for.
"The impact of their exit is huge but we do not think it will get there. We are confident they will exit fully but will agree to a co-management in line with ICAO rules," the Chief Director of the Transport Ministry said.
"If that happens, it will reduce the impact," he noted.
The acting Director-General of GCAA stated that the two countries would soften their stance and instead of exiting fully from the region go into a co-management agreement in the interest of the three counties.
"I think we are making progress with the negotiations but if they eventually say no, then we will push for co-management where we will co-manage the region and share the proceeds. So, in all our planning processes; our budgeting and things like that, we are looking at the co-management and the effects it will have on our revenues," he said.
Alternatively, the authority can look for new income generating mechanisms, which obviously will take time to materialise.
As a result, its acting DG said although the co-management was also favourable, given the impact it will have on revenues, it was better than allowing the two countries to exit "for us to lose about 52 per cent of our revenues.”
"But if we co-manage, we may get some percentage of that 52 so that the cost of managing that upper airspace will be charged against all of us," he explained.
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