17
Mon, Dec

GHANA AIRPORTS MAKES FINANCIAL GAINS

Business & Economy

Ghana Airports Company Ltd (GACL) made great strides last year, the company has said.

Ghana Airports Company Ltd (GACL) made great strides last year, the company has said.

 

GACL’s financial position for the year December 31 2017 shows that it recorded profit after tax of roughly GHC87 million, against 2016 figures of roughly GHC153m.

Although net profits for 2017 were insignificant compared to other recent years, GACL displayed resilience as a growing business concern by posting impressive total revenue of over GHC440m, 21 per cent above the result for the previous year.

The results were presented by the chairperson of Ghana Airports Company Ltd, Oboshie Sai-Kwofie, at the company’s sixth annual general meeting in Accra yesterday.

Market uncertainty

The report commended progress in the year ending December 31 2017 across a varying range of vital business areas, such as passenger volumes, air traffic movement and freight, all in the face of market uncertainties.

According to Mrs Sai-Kwofie, stated capital rose to GHC4.855 billion in 2017 from GHC1m in 2016, an increase of GHC3.85bn.

She revealed that, in the year under review, the board had taken deft decisions by making transfers into the stated capital account to the tune of GHC1.6bn as income surplus, and GHC1.02m as other reserves. Again, GHC 3.177bn in revaluation surplus was made, while a total of GHC12.68m was transferred as government of Ghana capital support.

In her presentation, Mrs Sai-Kwofie commended the government for support which, through the budget of 2017, removed 17.5 per cent VAT on domestic airfares to make domestic travel more affordable.

“I am happy to note that as a result of this policy intervention, there has been a notable increase in domestic passenger throughput,” she observed.
Citing some of the company’s success stories, Mrs Sai-Kwofie noted that Ghana’s hosting of the first African Aerospace Conference and Exhibition from October 24-26 2017 had put Ghana on the world aviation map.

The event attracted over 300 exhibitors, 15,000 trade visitors and 150 participating delegates as well as local and foreign media.

Recipes for growth

Mrs Sai-Kwofie acknowledged that, even though the Ghanaian aviation industry’s potential remains huge, major stakeholders such as governments and corporate players must recognise the wider benefits that an efficient aviation system could bring to economic development.

She called for the removal of counterproductive taxation systems, and said much remains to be done on the essentially protectionist regulatory front.

For his part, the managing director of Ghana Airports Company Ltd, John Dekyem Attafuah, observed that air traffic movement for 2017 was 39,217, against the previous year’s movement of 36,354: an encouraging 7.9 per cent increase. He attributed the growth to increased international and domestic movements in the year past.

He also said that the entry of Air France and Mid Africa airlines into Ghana’s aviation space, as well as the extended route networks of Africa World Airlines and Brussels Airlines, have increased frequencies in the air traffic spectrum. In addition, the input of TAP Portugal and other non-scheduled operators has served as a boost to international movements for Ghana’s aviation industry.

Mr Attafuah was pleased with the strong performance by African World Airlines, which has contributed to the gains by increasing flights on the domestic front. He was confident that, despite uncertainties and macroeconomic challenges in 2017, most of which were beyond the company’s control, the completion of Terminal 3 will create opportunities for further business growth.

Upskilling

On safety, he assured the public that management had reviewed the threat level during the period under review to ensure the security of passengers.

The managing director told the meeting that, in line with protocols, the Transportation Security Agency (TSA) of the United States had undertaken an extensive security audit in November 2017 at Kotoka International Airport, covering all areas of security operations.

“The Department for Transport [DFfT], UK, also conducted an extensive security survey of the airport, after which we have successfully implemented their recommendations,” Mr Attafuah said.

He stressed that management would continue to improve the skills of employees to develop the capability (knowledge, skills and behaviour) within the company to achieve GACL’s priorities now and in the near future.

The report for the year ending 31 December 2017 affirmed the commitment, determination and dedication of the board, management and staff of GACL to sustain the company’s strong performance.

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