Reputable International airline Goldstar Air, the wings of Ghana, is awaiting aircraft inspection to commence operations as an intercontinental airline, to enhance Africa’s Gross Domestic Product (GDP).
The airline has set its sights on the liberalization of Air Transport in Africa for socioeconomic development, by introducing Afrik Allianz and Afrik Insurance to become a leading Gross Domestic Product (GDP) contributor on the continent.
As of 2023, the Gross Domestic Product of Africa was estimated at 3.1 trillion U.S dollars and the commencement of Afrik Allianz and Insurance operations guarantees the stabilization of the economy of member airline countries and stands as a major priority to increase the Gross Domestic Product and put Africa on a sound footing.
Afrik Allianz is a strategic move to enhance connectivity, streamline operations, offer travelers more options on the African continent, and identify the potential benefits of collaboration, such as cost-sharing, code-sharing, and joint marketing efforts. Develop common standards for ticketing, baggage handling, and passenger services.
Afrik Allianz’s Liberalization of Air Transport in Africa is to stimulate increased trade volume, investment, and business activities on the African continent, with massive job creation, poverty reduction, foreign exchange earnings, and making the airlines financial instrument of Africa.
To optimize 24/7/365 operational efficiency and reduce costs, Afrik Allianz members will collaborate in resource sharing, including lounges, terminal space, ground handling services, common marketing programs, maintenance bases, and IT systems, which will reduce overall costs. The collaboration effort aims to ensure a consistent level of service while maintaining financial independence and brand identity for member carriers in creating millions of job opportunities for teeming African youth.
Afrik Allianz will be regularly assessing members’ performance adapt strategies as needed address challenges promptly and maintain open communication among members. Our success will depend on commitment, trust, and alignment among member airlines.
State-of-the-art infrastructure such as runways, taxiways, and terminal facilities is negatively affecting the capacity of some African countries to build aviation hubs. The aviation hub must be able to support flight operations 24 hours seven days a week.
African airports must not operate only sunset flights. Accra Airport Terminal 2 and 3 walkway transit connectivity facilities would make our 24-hour hub possible in the capital city of Ghana.
Airlines from various countries may have distinct organizational cultures, communication styles, and decision-making processes. Bridging these cultural gaps is essential for effective collaboration. Competing airlines must overcome historical rivalries and find common ground. Building trust among Afrik Allianz members is crucial. Members must collaborate openly, share information, and work together for mutual benefit. Some members may contribute more to the alliance in terms of routes, while others have limited coverage, therefore revenue-sharing models and cost-sharing arrangements will be fair and sustainable.
In 2018, the Single African Air Transport Market (SAATM) was launched to fully implement the Yamoussoukro Decision, granting member states greater freedom in each other’s airspace. Many countries and organizations have been critical of the agreement, arguing that it will hurt smaller airlines and allow already large carriers to dominate. Airline Operators of Nigeria (AON). an association of Nigerian airlines denounced the Single African Air Transport Market and lobbied the Nigerian government to avoid implementing the Single Market, advocating instead for the formation of regional airlines before further Air Liberalization. Uganda President Yoweri Museveni also opined in 2018 that a few airlines will dominate, which is not good.
The federal high court in Lagos has halted Nigeria Air from collaborating with any foreign airline. The Airline Operators of Nigeria (AON) and five other aviation stakeholders (Plaintiffs) claimed the bidding process for Nigeria Air, facilitated by the Federal Government of Nigeria, was fraught with irregularities and in favor of a foreign entity. Justice Ambrose Lewis-Allagoa ruled that the National Airline should be halted. The judgment was delivered in favor of the Plaintiffs.
According to Bloomberg, the foreign entity plans to establish a national carrier in collaboration with the Nigeria government and institutional investors has ended. The conflict began soon after Ethiopian Airlines was announced by the Federal Government as a foreign entity.
Goldstar Air is aiming to be among the best one hundred companies in Africa with great company culture and customer service, therefore the airline has placed a strong emphasis on starting the Afrik Allianz and Insurance.
According to the Chairman and Chief Executive Officer of Goldstar Air Eric Bannerman, airlines are just banks now, therefore Afrik Allianz members will create points on our frequent flyer program and sell them for real money to banks with co-branded credit cards. The banks will also award points to cardholders for spending, and both the banks and credit card companies make money off the swipe fees from the use of the card. Cardholders can redeem points for flights, as well as other goods and services sold through member airlines’ proprietary e-commerce portals.
This initiative will be a great deal and incur no costs from points until they are redeemed or even if the points are forgotten. This setup will make Afrik Allianz’s loyalty programs highly lucrative. Consumers are now charged and it is nearly one percent (1%) of United States Gross Domestic Product to one airline credit card alone.
Afrik Allianz will achieve better financial health by also optimizing cargo operations through collaboration, data-driven insights, customer-centric approaches, continuous improvement, and implementing several strategies. Our success will require adaptability, trust, and a commitment to shared objectives. Learning from past failures of others will help shape stronger partnerships in the aviation industry and balance the network to provide comprehensive global reach. Coordinating flight schedules, baggage handling, and passenger services across different carriers requires meticulous planning as ensuring the financial health of Afrik Allianz members is vital.
A 2020 analysis by the Financial Times found that Wall Street lenders valued the major airlines’ mileage programs more highly than the airlines themselves. An airline in the United States frequent flyer program was valued at 22 billion U.S. dollars, while the company’s market cap at the time was only 10.6 billion U.S. dollars.
Goldstar Air is negotiating with some members of Afrik Allianz to set up an insurance department which will be known as Afrik Insurance, to start with insurance with our aircraft that will initially fly within the African continent and later to other continents. Aviation insurance will cover the requirements that are needed and are helpful to owners, operators, pilots, renters, students, and flight schools in which there is a risk for life.
The airline will work with insurance companies on the African continent to ensure all big-ticket insurance coverage is taken care of by a consortium of insurance companies.
The facultative reinsurance and reinsurance treaties are two types of reinsurance contracts. When it comes to facultative reinsurance the main insurer covers one risk or a series of risks held in its books. The treaty reinsurance, on the other hand, is insurance purchased by an insurer from another company.
Members of Afrik Allianz will benefit a lot from these arrangements once there are not enough claims and will also arrange “fleet policies” to cover all aircraft they own or operate. The underwriting profits can be utilized as an indemnity or guarantee to purchase additional aircraft for members, and this will also benefit the local insurance in Ghana.
Afrik Insurance financial guarantee will provide guarantee contracts to member airlines for the purchase of more aircraft and will maintain direct legal ownership of the financial asset at inception and throughout the life of the contract, or Afrik Insurance will maintain a back-to-back arrangement with a third party that has direct legal ownership of the financial asset at inception and throughout the life of the contract.
Afrik Allianz premiums will be received in installments and the period outstanding is estimated based on expected prepayments, the premium receivable asset and unearned premium revenue liability will be adjusted when prepayment assumptions change. The premium receivable asset will be recalculated based on current prepayment assumptions and the current risk-free rate, and an adjustment will be made for the difference between this revised balance and the balance based on original assumptions.
The distribution of profits within Afrik Allianz will vary based on specific agreements and business models, as specific routes as profit centers. Operating successfully in these areas contributes to the overall profit pool. Revenue-sharing agreements within Afrik Allianz will involve complex discussions and considerations, balancing cooperation, competition, and efficient revenue management. The goal is to create a win-win situation for all members.
The global aircraft insurance market size was valued at 15.65 billion US dollars in 2023. It is expected to reach 20.34 billion US dollars in 2032, growing at a Compound Annual Growth Rate (CAGR) of 2.96% over the forecast period (2024-32).
General aviation market capacity increased during 2022 and into 2023, driven by fresh insurers looking to capture market share, and existing insurers looking to maintain their positions. Accounts perceived to be safety-driven, with good loss records and positive engagement with the markets and industry bodies are seeing offers of capacity of more than one hundred percent (100%), further driving pricing competition.
Mr. Bannerman emphasized that Afrik Allianz and Insurance is designed to facilitate intra-regional trade and regional integration through the movement of goods, services, and people across Africa and beyond. With over one hundred and twenty-one (121) airports within Africa and connections to other continents, the alliance aims to foster multimodal transportation and connectivity, as Airports Council International (ACI) World forecasts passenger traffic in Africa to reach 261 million in 2025.
This initiative will be an opportunity for member countries to get involved and make it a reality to sustain easy movements. The absence of transit facilities at some African airports is affecting the progress of aviation in Africa.
To benefit from the West Africa hub or Gateway to West Africa, the country must include transit facilities and immigration should adopt a new policy that recognizes transit passengers. Goldstar Air will have transit facilities where our passengers will stay until they board their next flight.
The airline will segment class of passengers who in other countries are made to wait in the transit facility at the airside until they are due to fly again and will be working with the Ghana Immigration Service to treat passengers whose destination is not Ghana differently and who will be at the airside to be able to tour some parts of the country whiles on transit, not to obtain a visa or follow other procedures like other passengers whose final destination is Ghana. What is usually obtained is that if the passengers are not leaving the airport, they do not need a visa because they are in transit.
Goldstar Air’s vision extends to operating over one hundred aircraft and generating sustainable job opportunities for Ghanaians to connect African businesses and capitalize on the opportunity presented by the Africa Continental Free Trade Area (AfCFTA), with a staggering forty-four (44) million Small and Medium-sized Enterprises (SMEs) across Africa.
The continent possesses the resources to make significant economic strides, and the Africa Continental Free Trade Area aims to eliminate trade barriers, representing a significant opportunity for Africa to assert itself on the global economic stage.
The African Continental Free Trade Area (AfCFTA) has created the largest free market in the world so Afrik Allianz will be connecting 1.3 billion people from 55 countries with a total GDP of $3.4 trillion and there is sufficient room for the establishment of many other aviation hubs to cater for the movement of people and goods.
It is promising that African countries are already strategizing on how to benefit from the African Continental Free Trade Area agreement and developing clear plans of action to take advantage of national, regional, and global markets in the AfCFTA context. The African Continental Free Trade Area Agreement can play a game-changing by taking advantage of Afrik Allianz’s role in Africa’s economic diversification and inclusion. This will be an opportunity for member countries to get involved to also make it a reality to sustain easy movement within the African continent.
According to the United Nations World Tourism Organization (UNWTO), over 960 million tourists traveled internationally in 2022, more than doubled in 2021. IATA reported that airlines carried 3.4 billion passengers in 2022 compared to the 2.2 billion realized in 2021. The African continent received 46.6 million international tourists, generating USD 31.6 billion.
Airlines in the continent carried 67 million passengers, representing a 55.8% growth compared to the previous year. In terms of capacity, the average Passenger Load Factor recorded in Africa for 2022 was 71.6%, a 10.6% increase compared to 2021. This is 7% less than the global average. The mismatch between capacity and demand and the limited commercial cooperation between local carriers may explain this low performance in terms of load factor in Africa. The recovery is expected to continue, and African airlines’ estimated number of passengers in 2023 is 85 million, with the coming in of Afrik Allianz, passenger numbers on the African Continent will increase drastically.
Afrik Allianz will from time to time evaluate all processes, from ground handling to in-flight services. Identify areas where costs can be reduced without compromising safety or quality invest in fuel-efficient aircraft, optimize flight routes, and implement fuel-saving practicals. Adjust ticket prices based on demand, seasonality, and market conditions. Invest and maintain a highly skilled workforce capable of handling complex maintenance tasks.
Goldstar Air marks Labor Day on 2nd September 2024. The United States and Ghanaian registered airline marks this moment to honor the hard-working employees who have been working all these years to create job opportunities for generations to come. Better times are ahead. Good labor pays. Happy Labor Day to workers in the United States and Canada.
From the capital city of Volta Region, Ho municipal district’s 24-hour Industrial Zone viability will be an economic generator for the region. Hajj flights to and from the Kingdom of Saudi Arabia and charter flights will open more doors for Volta.
From the capital city of the Upper West Region, the Wa municipal district will be experiencing charter flights which will help businesses in the area expand and attract new companies. Also, Hajj flights to and from the Kingdom of Saudi Arabia.
From the capital city of the Northern Region, Tamale City will serve as a pivotal hub for our airline’s maintenance base, cargo, and training school and plans are underway to operate international flights to and from the Sahel region and Hajj flights to and from the Kingdom of Saudi Arabia.
From the garden city of Ashanti Region Kumasi, the airline will initially operate flights to Rome, Madrid, Hamburg, London, Dusseldorf, Milan, and Hajj flights to and from the Kingdom of Saudi Arabia.
Also, from the Capital city of Ghana, Accra city flights shall include destinations such as Washington, Dubai, Lagos, Toronto, Monrovia, Conakry, Abidjan, Guangzhou, Dakar, Banjul, Rhode Island, London, Freetown, and pending cities such as Miami-Florida, Atlanta-Georgia, Chicago-Illinois, Glasgow-Scotland, Houston-Texas and many more.
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