Skip to main content

More Flights, Cheaper Fares


Increasing competition is making domestic air travel cheaper and more flier-friendly in Ghana, reports TOMA IMIRHE.

Over the past six months, airfares charged domestic flights within Ghana have plummeted dramatically, giving some respite to air travelers who have long complained that the cost of ticketing by air, not just within Ghana, but between the country and other parts of the world too, are far too expensive.

Thank Starbow, one of the latest Ghanaian airlines flying locally, domestic route prices. The airline, which is owned by shareholders who are all domiciled in Ghana, commenced operations in October last year, flying between Accra and the three other largest cities of Kumasi, Tamale and Takoradi; at what were, at that time, cut-price fares. Ever following a slight increase in fares early this year, in response to a rise in fuel prices and the depreciation of the cedi, Starbow, still offers one way fares between Accra and Kumasi for as low as GH¢110, between Accra and Takoradi for as little as GH¢99 and between Accra and Tamale for just GH¢165. If a customer books at least seven days before departure, Starbow will take him or her far even less.

At the time Starbow started flying the two established domestic route airlines charged considerably more; for instance City-Link was charging GH¢139 between Accra and Kumasi, and between Accra and Takoradi, and GH¢250 between Accra and Tamale. Antrak’s fares were quite similar.

Instructively, since Starbow introduced its own domestic flights at considerably lower fares, the two airlines have slashed theirs to about the same as what Starbow charges. Late last year a fourth domestic airline, Fly 540 also started operations, sensibly introducing its services at about the same prices as the others.

“We’ve proved you can bring affordable flying to Africa” says Dr. Brock Friesen, a former Canadian Airlines International Vice President who is now co-Chief Executive of Starbow. “Air travel in Ghana is far more expensive than in say, North America or Europe but we are trying to charge this.”

Now that domestic airfares have come down somewhat, do not expect a sustained price war through. “Starbow has found a reasonable pricing level and will stay there” says Dr. Friesen. “Rather than engage in a price war, we will rely on our competitive advantages to win further market share.”

To be sure Starbow has several of those competitive advantages Dr. Friesen adduces. Firstly it is the only domestic airline in Ghana that uses jet aircraft rather than propeller – driven planes, which means quieter flights in more modern aircraft than its competitors’ use. Secondly the two BAE-146 aircraft it uses are bigger than its competitors’ with 94 seats configured to carry eight business class passengers and 86 economy class passengers.

The planes its older competitors use carry barely half as many passengers, and even Fly 540, which offers a newer version of propeller aircraft, only provides 66 seats on each flight. This allows Starbow to enjoy better economies of scale than its competitors, which is largely why it started out with lower fares in the first place.

Another advantage is that it uses just one type of aircraft which allows it to use the same pilots, spare parts and maintenance services on all its routes, providing further economies of scale.

Even with its bigger aircraft; Starbow has been able to at least match its competitors fight frequencies and in some cases do even more. Currently the airline does 27 flights a week up from 12 initially and is adding more flight weekly between Accra and Kumasi in March. Combines with its bigger passenger capacity thus has given Starbow the biggest market share on domestic routes within barely five months of its starting operations.

However Starbow assures that it will not use this as an opportunity to increase its fares. “We will not jock up our fares because we dominate in terms of market share” says Dr. Friesen. “Rather we will add more flights and make bigger profits from more economies of scale rather than wider profit margins.”

Here Starbow’s business model has put it in good stead. “We purchased the most efficient aircraft, deployed superior IT, and the most effective operational processes and procedures and we are deriving the best economies of scale” asserts Dr. Friesen. “We come here, saw that the economy was underserved so we offered an alternative using the right planes, the right schedules and the right people.”

In May Starbow will go to the next level, using the same successful business model to start flying sub-regional routes to 12 other West African cities, starting with Abidjan, Cotonou, Monrovia and Ouagadougou this year.

However as the airline begins its expansion beyond Ghana it will have to watch its back, at home. This year, Africa World, an airline founded by Togbe Afede XIV, a successful traditional ruler, investment banker and entrepreneur, is to start operations, offering the same flights as Starbow, targeting first time fliers and Chinese immigrants.

Domestic air travelers in Ghana will have no worries though; local air travel in the country just get cheaper, and is getting better too.

Comments

Unknown said…
The fact is tourism industry in Ghana is developing by leaps and bounds. Keeping in view the popularity of Ghana beaches, leading travel agents like Reliance Travels UK have started to offer cheap flights to Accra and other cities of Ghana. The positive point we can derive is even a middle class family can afford a family trip.
Unknown said…
Cheap air tickets are offered round the timer; even for the end minute travelers it becomes easier as you can be positive that cheaper flight to BOM can found every day.

Popular posts from this blog

MTN Ghana & MTN MoMo CEOs win laurels at Ghana CEO Awards

  The Chief Executive Officer of MTN Ghana, Selorm Adadevoh ,   has been adjudged  CEO of the Year  –  Telecom  at the  2 nd  edition of the  Ghana CEO  Vision  and  Awards   held  in Accra. At the same event, the CEO of Mobile Money Limited (MTN MoMo), Shaibu Haruna was also adjudged CEO of the Year – FinTech Service Provider. Selorm  Adadevoh’s award  is in recognition  of  his   achievements   in the areas of   sustainability, leadership excellence, innovation and others  in the telecoms space  which  has contributed to  job creation to support the  growth of Ghana’s economy. Patrick Afari (r), General Manager, Supply Chain Management and General Services receiving CEO of the Year – Telecom Award on behalf of Selorm Adadevoh Receiving the award on behalf of Selorm, Patrick Afari, General Manager, Supply Chain Management and General Services ,  expressed appreciation to the organizers for the award. He  noted that  th e  award will go a long way to inspire MTN to do more for Ghanaian

EB-ACCION DISBURSES US$15 MILLION

By Fred SARPONG Ecobank-Accion (EB-Accion), a partnership between Ecobank Ghana Limited and Accion International has disbursed amount to the tune of $15 million to over 36,000 borrowers in Micro, Small and Medium Enterprises (MSMEs) sector in the country, since the institution was set up barely six months ago. Frances Adu-Mantey, the Managing Director of EB-Accion disclosed this to Business Week in Accra last week during the official opening of Accion Hub headquarters in Africa. The institution’s current portfolio stands at GH¢4 million. She stated that currently, EB-Accion have over 6100 customers who save with them throughout the four branches of the institution. According to her, in order to improve the services of the institution, Ecobank Share Services center will facilitate the technology aspect of the bank by networking all the branches of EB-Accion. Maria Otero, President and Chief Executive Officer of Accion International said that the center’s staff in Accra will provide supp

Amantin & Kasei Community Bank posts impressive growth, with over GH¢1m profit

 Amantin and Kasei Community Bank, at Amantin in the Bono East Region has posted impressive growth in all the performance indicators during 2022 financial year under review. The bank recorded profit after tax of GH¢1,055,662, representing 35.66% more over the 2021 figure of GH¢778.151. This achievement stemmed out of 49.24% gross income growth from GH¢8,143,526 to GH¢12,153,537. Total deposits of the bank went up by 36.20%, changing from GH¢50,959,848 in 2021 to GH¢69,405,591 in 2022. The bank increased loans and advances by 22.15% from GH¢14,128,017 to GH¢17,257,614. Total assets showed an appreciation of 29.32%, amounting to GH¢77,918,288 as against GH¢60,250,693 in the previous year. On the other hand, the bank posted a marginal increase in short term investments portfolio from GH¢24,439,761 to GH¢26,585,698, indicating 8.78% change. The Chairman of Board of Directors, Amantin and Kasei Community Bank, Dr. John Oduro-Boateng, disclosed this during the 18th annual general meeting of