International airline Goldstar Air is on track to position Ghana’s airports as the busiest aviation hub in Africa. Air transport services benefit, airlines, employees, ground transportation, aviation partners, suppliers, and governments that extract taxes and charges from the industry. However, policy and investment appraisals often fail to include the wider economic benefits the air transport network generates.
Goldstar Air positioning Ghana as a 24-hour service aviation hub in Africa is an ambitious but achievable goal that will capitalize on the country’s geographic location as a gateway to West Africa and a convenient transit point for flights between the Americas, Europe, and the rest of Africa. This would bring numerous economic, social, and infrastructural benefits to the country.
The airline’s 24-hour service will make Ghana a more inclusive and welcoming destination for travelers with disabilities. Not only will this improve the travel experience for persons with disabilities (PWDs), but it will also contribute to the overall growth of Ghana’s tourism industry. Goldstar Air will make informed decisions to enhance accessibility and inclusivity on how to communicate effectively with people who have hearing or speech impairments, and how to assist those with mobility challenges.
Goldstar Air will create travel packages, specifically designed for PWDs that will greatly impact Ghana’s aviation. These packages will include accessible transportation options, such as wheelchair-friendly vehicles, and accommodations that cater to the needs of PWDs. Goldstar Air has the potential to play a pivotal role in improving disability tourism in Ghana and will help create a more accessible and equitable world for all travelers.
The airline’s 24-hour service will promote Disability Tourism in Ghana by using wheelchair-friendly vehicles for persons with disabilities (PWDs). The airline will collaborate with local governments and organizations to improve infrastructure at popular tourist destinations. This includes building ramps, accessible restrooms, and tactile paths for visually impaired visitors.
Ghana, known for its rich cultural heritage and breathtaking, landscapes, holds a unique geographical marvel that sets it apart from many other countries in the world. The equator intersects the Greenwich Meridian, or longitude zero degrees, at Hole Seven of the Tema Country Golf Club in southern Ghana. This point is not only a landmark but is also recognized as the geographic center of the Earth, making it a significant location from a global perspective. Interestingly, this point is located 611 kilometers from the mainland of Ghana, a fact that adds to the geographical intrigue of the region.
The intersection of the equator and the Greenwich Meridian at the Tema Country Golf Club presents significant opportunities for economic growth and tourism development. As a unique geographic location, Goldstar Air’s 24-hour service will be promoting it as a must-visit destination for tourists interested in geography, science, and natural wonders. The golf club itself can capitalize on this distinction by offering themed tours, educational programs, and promotional events that highlight the significance of the location. By drawing in visitors from around the world, this site can contribute to the local economy and enhance Ghana’s reputation on the global stage.
The United States and Ghanaian registered company Goldstar Air is awaiting a safety certificate from the Ghana Civil Aviation Authority after the aircraft inspection to start operating scheduled and non-schedule flights to West Africa and Intercontinental to provide employment opportunities for Ghanaians.
Goldstar Air’s 24-hour service is an extremely valuable asset for Ghana’s economy in its own right. The country’s economy will derive significant economic and social benefits from both domestic and international air transport networks and their connections to the wider global air transport network and will create over one million job opportunities for Ghanaians.
The aviation industry supports $3.5 trillion (4.1%) of the world’s Gross Domestic Product (GDP), if aviation were a country, it would rank 17th in size by GDP. That equates to the GDP of Indonesia and the Netherlands and supports 87.7 million jobs around the world.
Air transport provides the global transportation network for passengers and cargo, making it essential for global business operations and personal travel and tourism. It provides substantial economic benefits by connecting people and businesses around the globe. It also provides significant social benefits by facilitating greater communication between different parts of the world and providing greater access to remote areas.
Goldstar Air’s existence of this ‘qualitative’ impact demonstrates that investment in new aviation infrastructure, providing greater access to the global air transport network, will help to expand Ghana’s economic productive potential. This will provide an invaluable starting point for the quantification and inclusion of wider network benefits in future policy and investment appraisals.
According to the latest Ghana Auditor General’s Report on the accounts of public boards, corporations, and other statutory institutions in 2023 showed that in 2022, Ghana’s airports generated a combined revenue of GH¢13.13 million from their operations as against an expenditure of GH¢39.14 million.
The deficit of GH¢26.01 million has prompted a re-evaluation of strategies to optimize regional airport development and maximize economic benefits. The regional airports are the Kumasi Airport, now Prempeh I International Airport in the Ashanti Region, the Tamale Airport in the Northern Region, the Wa Airport in the Upper West Region, the Sunyani Airport in the Bono Region, and the Ho Airport in the Volta Region.
A further breakdown of the data indicated that the Kumasi Airport injected GH¢15.68 million as expenditure but generated GH¢8.22 million in revenue. Tamale Airport on the other hand raked in GH¢4.74 million in revenue but invested a huge sum of GH¢15.41 million as expenditure, while Sunyani Airport accrued GH¢95,626.58 in revenue after an expenditure of GH¢4.53 million. The Ho Airport, which generated no revenue, had an expenditure of GH¢1.38 million in its books in 2022, while the Wa Airport generated GH¢77,250.48 as revenue and invested GH¢2.15 million in its operations.
The Auditor-General, therefore, recommended that Ghana Airport Company Limited’s management should encourage existing and potential domestic airlines to patronize the airports by providing possible incentives to them and should also embark on a publicity drive to promote and market these airports to encourage more air travelers to patronize these regional airports.
The Auditor-General also recommended that the Commercial Service Department of the Ghana Airport Company Limited should identify potential concessionaires to occupy idle spaces to generate more revenue through rent and royalties. He added that Ghana Airport Company Limited management should liaise with appropriate regulatory authorities to reduce regulatory barriers for potential airlines without necessarily compromising safety.
According to the Chairman and Chief Executive Officer of Goldstar Air Eric Bannerman, the airline has applied to lease the Kotoka International Airport (ACC) Terminal Two (2) building to use it as the airline’s main hub, which is underutilized. The airline will build modern passenger boarding bridges, duty-free shops, gyms, saloons, offices, and beautiful convenient customer-centric experiences for departing and arriving passengers and breaking new grounds for job opportunities for the youth in aviation and part of the commitment to support government efforts to ensure the enhancement of all airports in Ghana.
The Tamale International Airport (TML) will be a pivotal hub for Goldstar Air’s Cargo Village, Maintenance Repair Overhaul, Aviation Training School, and unique Aviation Catering Services. Plans are underway to operate international passenger and cargo flights to and from the Sahel region and Hajj flights. Given the increasing popularity and demand for fresh fruits and vegetables year-round, Goldstar Air will prioritize the transportation of perishable goods by air from the Tamale International Airport. The airline will always ensure appropriate packing and handling of the perishable goods and deliver them in good condition with shorter travel times and controlled temperatures.
Wa Airport is the fifth busiest commercial airport in Ghana and the third longest airport runway in Ghana. Goldstar Air will soon initiate Hajj and charter flights to and from the Wa Airport (WZA) in the Upper West Region of Ghana. The Wa Airport in the North-Western part of Ghana is strategic for the country and is bordered by the Upper East Region to the east, the Northern Region to the south, and Burkina Faso to the west and north.
The airline is set to revitalize Ho Airport (HZO) in the Volta Region and an innovative approach to develop an industrial zone that will attract more passengers to the airport and stimulate high-quality economic growth in the region and across the nation. By promoting ‘Destination Volta’ Goldstar Air aims to showcase Ho airport to the world and transform the region into a premier tourist destination and one of the world’s most visited tourist sites and industrial zone.
Goldstar Air wants to reassure the Ghanaian traveling population that the current 1,981-meter runway at the Kumasi Prempeh 1 International Airport (KMS) will be enough and safe for our narrow-body aircraft to fly direct to and from our European destinations and Saudi Arabia (Hajj Pilgrimage) until the runway is expanded to accommodate our wide-body aircraft to and from Asia and North America.
To make Kumasi Airport now Kumasi Prempeh 1 International Airport (KMS) useful for the region, the youth must be trained to get jobs to benefit Asanteman, because it is not only about opening the airport for international passengers and aircraft but also for the local people. Kumasi Airport city and the region will benefit from the Airline’s 24/7/365 economy-axillary jobs around the airport. The main reason for opening the international concourse at the airport is for Asanteman to get jobs and Goldstar Air is the obvious choice to make it happen.
Sunyani Airport, located in the heart of Ghana’s Brong-Ahafo region, has the potential to become a bustling hub for both domestic and international passengers. Goldstar Air, with its commitment to enhancing air travel in the country, will play a pivotal role in increasing passenger traffic at Sunyani, known for its beautiful landscapes including the Kintampo Waterfalls and Tano River. The airline will collaborate with local tourism boards to create attractive local packages that highlight these attractions. Marketing campaigns will be launched to promote Sunyani as a must-visit destination targeting international tourists.
Goldstar Air is ambitious of providing scheduled and non-scheduled passenger and cargo air service initially to North America, Europe, Asia, the Middle East, and Africa. The airline has chosen Washington, Rhode Island, London, Dubai, Guangzhou, Toronto, Milan, Hamburg, Madrid, Rome, Düsseldorf, Lagos, Freetown, Banjul, Conakry, Dakar, Monrovia, and Abidjan from Ghana, as major originating cities for our initial operations. Direct non-stop services will be deployed where necessary.
Mr. Bannerman emphasized that, the benefits of Ghana’s air transport network with Goldstar Air as a whole increase concerning the number of destinations served and the frequency of flights. However, the access available from the country’s airports to the global air transport network is related not just to the number and size of the destinations served, but also to the number of onward flight connections from these destinations. In other words, the overall benefit of an air service is linked to both the economic importance of the destinations served and the network connections from Ghana’s airports to additional destinations.
The existence of Goldstar Air’s extensive network will also generate benefits beyond the individual user. It will improve efficiency and productivity for an economy by connecting firms to a greater number of potential markets and a wider range of potential suppliers. Policymakers must understand that a well-designed air transport network will generate tremendous economic benefits, not just for its users, but also as a facilitator of growth and investment across the wider economy.
Afrik Allianz, the multi-modal single air transport alliance network initiated by Goldstar Air connecting Africa and beyond, from each origin airport will connect several different destinations via flights to and from ‘hub’ airports. Ghanaian passengers and the wider economy will benefit from the ability to access both a greater number of destinations and a higher frequency of services that would be possible through the services of Afrik Allianz members. In other words, passengers benefit both from more frequent services to major destinations and from the ability to access additional economically important destinations through onward flights. All airlines that will provide services between airports within the network contribute to its wider economic value.
Passengers will also recognize the Afrik Allianz additional benefits provided by individual airlines within the wider network, such as a frequent flyer program. The perceived value of frequent flyer programs emphasizes the value customers perceive in having an inter-connected network of air services available. It will be a key factor behind the preference shown by passengers for transfers using the same airline or alliance group.
The air transport industry’s most important economic contribution is through its impact on the performance of other industries and as a facilitator of their growth. It affects the performance of the world economy, improving the efficiency of other industries across the whole spectrum of economic activity, referred to as catalytic or “spin-off” benefits.
Air transport facilitates world trade and helps countries participate in the global market by increasing access to main markets, allowing globalization of production, and encouraging countries to specialize in activities in which they have a comparative advantage, and to trade with countries producing other goods and services. Air transport is indispensable for tourism, particularly for remote and island destinations. Tourism directly supports jobs in airlines and airports, and the spending of visitors arriving by air creates a substantial number of jobs in the tourism industry.
Air transport boosts productivity across the global economy: improved transport links expand the market in which companies operate. As a result, companies are better able to exploit economies of scale thereby reducing costs, and to specialize in areas of comparative advantage. By opening markets, air services expose companies to stiffer competition, encouraging them to become more efficient.
Air transport improves the efficiency of the supply chain, as many industries use air transport to shorten delivery times as part of their just-in-time delivery systems, enabling them to deliver products to clients quickly and reliably and to reduce costs. Air transport is an enabler of investment both into and out of countries and regions, as viable air transport links are one of the key considerations that influence where international companies choose to invest.
The air transport industry finances its infrastructure through user charges and pays taxes to national treasuries. It is, therefore, totally misleading to suggest that aviation enjoys tax privileges versus other transport modes. Airlines pay some US$ 42 billion each year to airports and air navigation service providers. This includes specific user charges, such as landing, air navigation, and passenger service charges, for domestic and international traffic worldwide.
The difference between user charges and taxes User charges defray the costs of providing facilities and services for civil aviation. Taxes are generally levied to raise general governmental revenues that are not applied directly for aviation purposes.
The air transport industry covers its infrastructure costs of airport operations and air traffic management, through the payment of user charges, by airlines to airports and air navigation services providers. These charges are generally included and sometimes identified in the price of the airline ticket.
The air transport industry pays substantial taxes to local, provincial, and national authorities around the world via passenger duties, domestic value-added tax (VAT), customs or immigration levies, etc. In the United States, taxes levied on aviation exceeded US$ 14 billion in 2004, corresponding to 25% of airfares.
The global supply chain is becoming increasingly dependent on the rapid and reliable movement of high-value low-weight goods such as computer parts. Air transportation facilitates such movements by providing fast and reliable delivery of high-value products, especially relevant to modern-dynamic industries, such as the pharmaceutical/ biotechnology and telecommunication equipment sectors.
Most air cargo consists of manufactured products or products that will be used in a manufacturing process. The bulk of growth in world trade has come about further to the increased trade of manufactured goods to 40% of the value of inter-regional trade. The air transport industry has also contributed to trade in same-day and next-day delivery services and to the transportation of urgent or time-sensitive goods, such as post and packages, and perishable goods, such as fresh fruit, vegetables, and flowers, benefiting many developing nations.
Goldstar Air has secured an architectural design to build the Maintenance Repair Overhaul (MRO), Tamale Training School, and Tamale Cargo Village at the Tamale International Airport (TML). The building of the cargo village will allow direct exports from the region to international markets.
The cargo project aims to breach the north-south gap and to transform and reposition Ghana as an Aviation Hub to facilitate trade and regional integration. The project is also to galvanize investment and growth across the north of Ghana and manufacturing companies can move in because they can get their products easily to any destination in the world.
The development of air cargo villages at major airports in Ghana is expected to help the country in its aim to become a transshipment hub for air cargo. Major and non-major airports in most countries have cargo terminals.
Airport infrastructure organizations in Ghana must plan for the next 30 years, where cargo should be because most of the airports in the country will want it. The challenge will be that, in the existing airports there will be limited land area to accommodate it. Terminals will be looking for capacity expansion, MRO (maintenance, repair, and overhaul), training school, catering services space, and many more, but there will not be much space to go.
International Air Transport Association (IATA) estimated airline cargo revenue in 2023 to be $134.7 billion. Economic growth and globalization drive air cargo demand. Today air cargo retains its vital role in economic expansion, with an emphasis on developing markets. As a trade facilitator, air cargo increases the global reach of businesses, enabling them to get products to distant markets more cost-effectively and quickly.
Goldstar Air’s strategic 24-hour service steps will position Ghana as a premier aviation hub in Africa, attracting more passengers, investment, and tourists and driving economic growth and development.
Considering the country’s developmental needs it is important to develop the aviation sector and close the critical savings and investment gap which often makes the government resort to borrowing. However borrowing is not the most sustainable way of development.
Ghana’s public debt reached GHS761.2 bilion equivalent to 75.7 percent of the country’s Gross Domestic Product(GDP) at the end of July 2024. The airline’s relationship with Boeing Company, Michigan Aerospace manufacturers Association and incentives from Baltimore Washington International Airport(BWI) Rhode Island T.F Green International Airport (PVD), Toronto Pearson International Airport (YYZ) Glasgow International Airport (GLA) and othrs makes Goldstar Air the obvious choice for Ghana beyond aid and the answer to cedi depreciation as well as economic tool to bring a massive relief to the country.
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