FAA REASSESSMENT OF GHANA: INITIAL READOUT

C O N F I D E N T I A L SECTION 01 OF 02 ACCRA 002526

SIPDIS

DEPARTMENT PLEASE PASS TO FAA NATIONAL HQ WASHINGTON FRED
DRYDEN

E.O. 12958: DECL: 12/21/2009
TAGS: EAIR GH
SUBJECT: FAA REASSESSMENT OF GHANA: INITIAL READOUT


Classified By: EconChief Chris Landberg for Reason 1.5 (d)


1. (C) Summary. FAA Safety Inspectors Fred Dryden and David
Everett completed a three-day review of the Ghana Civil
Aviation Authority (GCAA) on December 16. FAA's
representative for Sub-Saharan Africa, Ed Jones, and EconOff
observed the process. The team reviewed the new Civil
Aviation Act, GCAA regulations, as well as certification and
safety inspection processes for compliance with ICAO
standards. FAA in Washington will review their report and
inform the Embassy of FAA's decision within 45 days. There
are three possible results: FAA can immediately downgrade
GCAA, allow GCAA to maintain Category I status, or
temporarily downgrade GCAA, with the provision of time to
come into compliance. Post belives FAA's team will reccomend
the third option. If this is the case, it is likely to
impact planned operations for the new national carrier, Ghana
International Airways (GIA). End Summary.


2. (U) The recently passed Civil Aviation Act had a large
impact on the assessment. In their out-brief FAA team
members described the law as both comprehensive and
far-reaching. Some provisions actually exceed FAA and ICAO
standards. The team was also impressed with the detailed
regulations drafted in the short time since the new law's
passage. FAA found the GCAA staff to be professional,
experienced and straightforward in their answers.


3. (C) The team found deficiencies in staff training, record
keeping, certification surveillance, and enforcement.
However, the team also felt it was unfair to evaluate the
GCAA unfavorably based on their compliance with laws that are
no longer in force and oversight of an airline that no longer
flies (Ghana Airways). Team leader Fred Dryden said that if
GCAA can apply and enforce the new law it could be a
"world-class civil aviation authority" within six months.
Dryden also felt many problems could be corrected before FAA
makes a final assessment simply by universally implementing
the new regulations and inspector handbook.


4. (SBU) The FAA team will forward their assessment and a
report to the FAA in Washington for review. There are three
possible outcomes:

-FAA finds that GCAA rules, regulations and oversight are so
deficient that Ghana is downgraded to Category II status,
banning direct flights from Ghana to the U.S.

-FAA finds GCAA in full compliance and Ghana maintains their
current Category I status.

-GCAA is found in compliance in some areas and deficient in
others. GCAA is temporarily downgraded to Category II and
given time to come into full compliance.

Although the final decision will be made in Washington, the
inspection team will probably recommend the third option, a
sort of provisional status, giving GCAA time to implement new
regulations.

REASSESSMENT'S IMPACT ON GHANA INTERNATIONAL AIRWAYS (GIA)
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5. (SBU) During the assessment GIA CEO Ralph Atkins and
Country Director Kirk Heaton were in Accra to oversee the
official registration of the new national carrier, Ghana
International Airways (GIA). Atkins and Heaton met with the
EconOffs before departing on December 17. Atkins is
confident the GoG and GIA will deposit USD 7 million in
start-up funds before December 31. GIA filed an application
with the GCAA this week for an Aircraft Licensing Agreement
(ACL) and hope to move staff to Ghana in January. They are
seeking USD 50 million from other carriers and private
investors for operating costs. This will dilute the GIA-GoG
stake in the new company to about 50 percent, split evenly
between them. Atkins hopes to have this done by the end of
March 2005. Operations should begin in June or July with a
fleet of 7 aircraft, expanding to 13 in 2 years.


6. (C) All of this is contingent upon Ghana's status with the
FAA. Even if FAA gives GCAA time to address its deficiencies
no new flights will be scheduled until GCAA merits Category I
status. GIA will not be able to fly directly to the U.S.
until that time. This will probably not interfere with GIA's
operations since GCAA could have Category I status before GIA
begins operations in June or July of 2005. It may, however,
interfere with ticketing because GIA will need to start
selling seats in April, which may be well before FAA can
properly assess GCAA's progress. Operations could be delayed
further if GCAA moves slowly to grant GIA's license and
operating certificates as new regulations and FAA's findings
come on line.

COMMENT
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7. (C) GCAA has the laws and people to be successful.
Without the support of Government, however, it cannot move
forward. GCAA's inability to regulate Ghana Airways for
political reasons was apparent during the assessment. GCAA
Director General Group Capt. Boachie retired recently, and
the GoG has yet to name a permanent replacement. A strong
candidate with political clout could establish proper
oversight of the new national carrier. With the right
leadership and support GCAA can use the next few months to
properly position itself as a true regulator. Post delivered
this message to Roads and Transport Minister Anane on
December 21. FAA officials expressed an interest in
providing technical assistance if funds can be found. Post
will work with GCAA and FAA to coordinate any possible
assistance. This could be the best way to help GCAA
implement its new regulations and gain support within the
GoG, without which GIA will be stillborn and we may see the
end of the only existing direct route from West Africa to the
U.S. End Comment.
YATES