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Africa: Little synergy between Ghanaian domestic airlines–CAA Boss.

There is very little synergy between the three main domestic airline operators in Ghana, a situation that see operators going after the same relatively small number of passengers on three main routes–Accra-Kumasi, Accra-Tamale and Accra-Takoradi, Ghana Civil Aviation Authority (GCAA) boss, Ing. Simon Allotey, has said.

“There is little synergy between the operators. There is a need to create a higher level of collaboration and partnerships. For examples, Unity Air with their 30-seat Embraer aircraft could launch a new service – Wa–Tamale–Kumasi, and feed either Passion Air or Africa World Airlines,” Ing. Allotey said.

The benefits of building synergy in the capital-intensive aviation sector has been the key to survival and growth of many airlines in the world. It eliminates duplicate functions and services, helps operators secure better deals from suppliers, higher productivity and efficiency from shared assets, and achieves economies of scale.

Other benefits are: cross-selling to customers of both businesses, access to new distribution channels, brand extensions and opening-up of new geographic markets.

Delivering the main presentation at the 3rd AviationGhana Stakeholders Meeting held in Accra, he noted that the main causes of poor synergy among domestic carriers are: Protectionism, lack of trust, fear of negative synergy, poor Strategy, varying visions, excessive bureaucracy and pride among others.

Source: aviationghana.com

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