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Airlines get three months rent waiver at Kotoka International Airport

The country’s airports management company, Ghana Airports Company Limited (GACL), in response to the challenges faced by airlines, has waived rent for all airline offices at the KIA and the regional airports for the second quarter of this year.

The GACL has also waived various aeronautical charges—landing, parking, and lighting—for the same period.

For concessionaires operating at the KIA and all regional airports, the GACL has also waived rent and royalty payments from April-June.

For other tenants of the various airports, gift shops, restaurants, forex bureaus and others who have been severely impacted by the lack of or reduced activities, the GACL has waived rent for quarter-two.

Though the move will erode the company’s aeronautical and non-aeronautical revenue, which is an important revenue stream, the GACL, according to sources, believes that supporting airlines in these difficult times is in itself an investment in its future income.

Ministry ponders more measures to ease pain

The Aviation Ministry, following presentations made by the BARGH, is looking to soften the COVID-19 blow on airlines and will soon announce various measures.

The current pandemic has pushed the global aviation industry almost to the wall, with major international airlines cutting thousands of jobs and asking governments for bailouts.

The International Air Transport Association (IATA) estimates that the pandemic could cost the industry about US$250bn this year.

According to IATA, worldwide flights were 70 percent lower at the start of the second quarter of this year.

The association predicted a further decline as restrictions rise in a number of regions. It projected that though airlines have little or no revenue coming in, they have to spend about US$60bn in the second quarter, as “some costs cannot be avoided and ticket refunds [are] also burning cash.”

 

 

 

Source: Business 24

 

 

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