Our regional airports must be revitalised
The recent Auditor-General's Report has shed light on the underwhelming performance of the country’s regional airports, highlighting a pressing need for strategic intervention to revitalise such state assets built at huge costs to the taxpayer.
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The stark reality is that these airports are not commercially viable, as they raked in a paltry combined revenue of GH¢13.13 million against an expenditure of GH¢39.14 million in 2022.
The Daily Graphic sees this deficit of GH¢26.01 million as a call for a comprehensive re-evaluation of strategies to optimise regional airport development, their commercial viability and ultimately, their profitability.
We acknowledge the social and economic benefits of domestic aviation, as emphasised by the Ghana Airports Company Limited (GACL). These regional airports hold immense potential for job creation, emergency access, and connect Ghana to the Economic Community of West African States (ECOWAS) sub-region.
However, their current state necessitates a multifaceted approach to address the challenges of low passenger patronage, few domestic airlines and underutilisation of airport facilities.
To stimulate the anticipated growth, the Daily Graphic thinks the GACL should consider implementing the Auditor-General's recommendations. The GACL must also consider offering incentives to existing and potential domestic airlines, which can increase patronage.
A targeted publicity drive can also promote these airports to a broader audience, while identifying concessionaires to occupy idle spaces can generate additional revenue streams through rent and royalties.
Again, regulatory barriers should be addressed in collaboration with relevant authorities to create a more conducive environment for airlines to operate. This can include streamlining processes, reducing fees and enhancing safety standards.
The paper can picture the plans, ideas and thoughts that went into the establishment of these airports, but we believe with the Auditor-General’s report, the GACL should re-appraise the sate of the airports and develop a comprehensive business model for each regional airport, focusing on their unique strengths and opportunities.
Further to this, the GACL should start engagements with local stakeholders, including businesses, communities and government agencies, to foster a sense of ownership and collaboration, while exploring public-private partnerships to inject capital and expertise into airport development and management.
The GACL must, as a matter of urgency, review its operational plans that would ensure that the investments in its operations become worthwhile for the country (operational and with well-thought-out plans invest in modernisation and capacity-building initiatives to enhance operational efficiency and safety).
It can, for instance, look at the possibility of establishing business integration with other transport services providers such as STC to serve as transit passengers from neighbouring West African countries to especially the capital and the regional capitals.
In as much as we sympathise with the situation, we acknowledge that the decision to construct airports at some locations were more of political decisions, rather than sound technical and financial decisions.
In that vein, we call on policymakers to take decisions based on economic considerations. In as much as we do not accuse the GACL of any bad motives, we think the company should establish a performance monitoring system to track progress, identify areas for improvement and ensure accountability.
The government should also consider providing targeted support to the GACL, recognising the national policy implications of developing regional airports. This can include financial assistance, technical expertise and policy reforms to create an enabling environment for the growth of these airports.
Indeed, the revitalisation of Ghana's regional airports requires a collective effort from stakeholders. The GACL must implement strategic recommendations and foster collaboration to unlock the potential of these airports to drive economic development, create jobs and enhance connectivity. For a fact, the regional airports can be a hub for socio-economic growth and prosperity.