GHANA CIVIL AVIATION WRAP UP -- JUNE 2006

UNCLAS SECTION 01 OF 02 ACCRA 001409

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E.O. 12958: N/A
TAGS: ECON EAIR GH
SUBJECT: GHANA CIVIL AVIATION WRAP UP -- JUNE 2006

REF: A. ACCRA 01076


B. ACCRA 01236

C. 2005 ACCRA 857

1.(U) This report covers noteworthy civil aviation
developments and activities in Ghana for May and June 2006.
The issues covered are:

-Demarche on inappropriate military aircraft fees
-Ghana International Airways arbitration
-Civil Aviation Authority's bid to regain Cat I
-GoG vets new Minister of Aviation
-South Africa Airways CEO meets with Ambassador

ECON and DAO Demarche Ghana Civil Aviation DG
--------------

2. (SBU) On June 15, EconOff and Air Attache demarched Nii
Badoo, Acting Director General of the Ghana Civil Aviation
Authority (GCAA),regarding the USG's policy towards landing,
parking and overflight fees for U.S. military aircraft. The
demarche followed the delivery of a diplomatic note to the
MFA detailing an exchange of notes between the Embassy and
the GoG in 1997, wherein the GoG agreed not to charge such
fees to U.S. Military aircraft. Badoo agreed to cease the
practice and added that he would brief his staff to ensure no
further charges were assessed.


3. (SBU) GCAA has been charging such fees to U.S. military
aircraft for several years. Although the Defense Attache's
Office (DAO) has refused to pay the invoices, USG aircraft in
transit are charged these fees regularly before being granted
permission to depart Ghana. Cash has been demanded and paid
on several occasions. We hope this recent meeting will
result in the end of that practice.

Ghana International Airways Arbitration
--------------

4. (U) The GoG has completed the mediation phase of its
dispute with former Ghana International Airlines (GIA)
stakeholder GIA-USA. The parties will begin non-binding
arbitration June 19. GIA-USA is looking to pull out its $1.9
million equity investment in the company. Relations fell
apart in early April when the GIA board sacked CEO Brian
Pressbury after missed payments to Ryan Air grounded GIA's
sole aircraft -- which is wet-leased from Ryan-- in London
(Ref B).

GCAA's bid to regain Cat I
--------------

5. (SBU) GCAA Director General Badoo outlined GCAA's progress
towards regaining Category I status during EconOff's visit
June 15. GCAA feels it has addressed all of the FAA's
concerns about air safety oversight in Ghana. However, Badoo
stated the GCAA has not been able to fulfill the FAA's
requirement for the GCAA to license a carrier for service to
the U.S. under the new Ghana civil aviation law, because of
the dearth of direct flights. Although GIA originally
intended to fly to the U.S., the airlines' ongoing problems
preclude an expansion anytime soon. Badoo said the GCAA has,
therefore, decided to begin the certification of MK Airlines,
a small, Ghanaian-registered cargo carrier that flies to the
U.S. He expects to have the certification completed by
August, and will then invite FAA to reassess GCAA. Badoo
hopes this will satisfy the FAA and allow Ghana to regain Cat
1 status before the end of 2006.

GoG Vets New Aviation Minister
--------------

6. (SBU) Newly appointed Aviation Minister Gloria Akkufo was
vetted by Ghana's Parliament June 7. Ms. Akkufo was
Assistant Attorney General and Deputy Minister for Justice
from 2001 to 2005. The GoG has yet to find quarters for the
new Ministry, which was created in the President's Cabinet
shakeup April 27. The makeup and responsibilities of the
Ministry are as yet undefined. (Note: This is the first
time under the current administration that Aviation will be a
stand-alone Ministry, which reflects the President's desire
to make civil aviation a government priority. Although we
assume the new Ministry will move out of the Presidency, we
also expect the Chief of Staff will continue to oversee it
closely, on behalf of the President. End Note).

South African Airways CEO Meets With Ambassador
-------------- --

7. (SBU) South Africa Airways (SAA) CEO Khaya Ngqula met with
Ambassador May 24 to appeal for support for SAA's bid to
become an equity partnerin GIA. In exchange for stake in
GIA, SAA is ofering to wet lease an aircraft to replace the

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one currently leased from Ryan. In addition, SAA is offering
blocks of seats on its Johannesburg - Dulles flight
(code-shared with United Air) if the GoG allows SAA to pick
up passengers in Accra (fifth freedom rights). This flight
currently goes through Banjul, but refueled in Accra up until
early May. GIA officials report that negotiations are
ongoing.
BRIDGEWATER