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Business News for Thursday, October 22, 2020
Source: aviationghana.com
2020-10-22
Ghana on Wednesday October 21, 2020 signed a memorandum of understanding with EgyptAir
Ghana on Wednesday signed a Memorandum of Understanding (MoU) with EgyptAir for the establishment of a new flag carrier, AvationGhana revealed.
The choice of Cairo-based EgyptAir as the preferred strategic partner follows a series of commitments to the airline’s senior management team and the aviation expert committee set up by the Ministry of Aviation over the past two weeks.
Despite the signing of a memorandum of understanding last year with Ethiopian Airlines to update the vision for a new home-based airline, the deal was delayed due to a lack of agreement on key issues such as routes, financing and the tenure of the management contract among others.
EgyptAir, according to sources at AviationGhana, offered a better deal in terms of financing for the new airline, routes, fleet and personnel, and Ghanaians are expected to play key roles in the new entity once it is established.
Aviation Minister Joseph Kofi Adda told AviationGhana shortly after the signing of the MoU that: “We were looking for what is best for Ghana in all of our engagements with potential partners.
” This [The deal with EgyptAir] It has come at a time when the African Continental Free Trade Agreement will enter into force early next year. Once the airline is established, it is expected to play a key role in transporting passengers and cargo within the continent and between Africa and other parts of the world.
The shareholders agreement is expected to be finalized in the coming weeks. The deal is also expected to be submitted to Parliament for approval in the coming weeks.
EgyptAir, based in Cairo, currently operates scheduled passenger and cargo services to more than 75 destinations in the Middle East, Europe, Africa, Asia and the Americas.
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