Coronavirus: GCAA projects 20% reduction in revenue following reduced flights

Coronavirus: GCAA projects 20% reduction in revenue following reduced flights

- The Ghana Civil Aviation Authority (GCAA) says it expects a 20% fall in its revenue target following the outbreak of the coronavirus

- According to the GCAA Director-General, Simon Allotey, a reduction in the number of flights has adversely affected its operations

- The government recently announced it would not permit flights from countries with more than 200 cases of the coronavirus

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The Ghana Civil Aviation Authority (GCAA) has estimated a 20% reduction in revenue as the number of flights allowed into Ghana reduces.

According to the GCAA, the coronavirus has negatively affected its operations and it may, therefore, have to resort to other means to make up for the shortfall.

GCAA’s Director-General, Ing. Simon Allotey, explained that the company depends largely on charges levied on passengers.

Coronavirus: GCAA projects 20% reduction in revenue following reduced flights
Ing. Simon Allotey, GCAA Director-General Source:
Source: UGC

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It also relies on revenue from landing fees, en route charges for aircraft overflying Ghana’s airspace and safety charges from passengers.

For that reason, a reduction in the number of passengers means a corresponding decrease in passenger safety charges.

A report shows that the revelations by the GCAA head follow emergency measures announced by President Akufo-Addo over the spread of the coronavirus in Ghana.

On Sunday, March 15, 2020, the president revealed the government has implemented measures to help curb the spread of the virus.

This came after the Ministry of Information, in partnership with officials from the Ghana Health Service (GHS) stated that Ghana had recorded four new cases in addition to a previous two cases.

As part of the measures taken, Ghana would not permit the landing of airplanes carrying passengers from countries that have recorded more than 200 cases of the coronavirus.

Allotey noted that the GCAA needs to revisit its targets and implement strategies that would cut down operational costs.

He, however, added that there are further stringent measures being considered but shutting down the airport is not a preferred choice as it could lead to laying off of workers.

Meanwhile, the Ghana Investment Promotion Centre (GIPC) has announced a possible downward review of its annual Foreign Direct Investment (FDI) target of $10 billion.

The decision was reached following the disruption of business and investment activities as a result of the coronavirus.

The coronavirus has reportedly led to a loss of global stocks to the tune of over $3 trillion just before the end of 2020’s first quarter.

This has led to the fall in capital inflows and transactions and countries all over the world are enforcing social distance.

READ ALSO: Meeting on coronavirus held every 3 years postponed because of coronavirus

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