Skip to main content

PassionAir suspends flights to Ho over fuel price hikes, high exchange rates


Local airline operator, PassionAir, has suspended flights to the Volta Regional capital, Ho.

According to the airline, although the new Ho route did not enjoy much patronage, the decision to suspend flights to that part of the country is mainly due to the increase in fuel prices.

The airline, which started scheduled domestic operations in Ghana in August 2018, from its Accra hub to Kumasi, Takoradi, Tamale, and later Wa, began flying to Ho only four months ago.

In an interview with Citi News, Sales and Marketing Manager with PassionAir, Samuel Razak Tachie, said though the suspension is indefinite, it will resume flights to Ho as soon as fuel prices stabilize.

“Usually, when you start a route like this, it takes time to build up with the number of passengers. But in the course of time with the hikes in fuel prices and the exchange rate, we had some issues that were very challenging for us. So that is what has led to this suspension.”

This is the first time the Ho route has not been operated on commercially, but the patronage has been very low and unfortunately the fuel prices and the depreciation of the cedi did not help matters. But our suspension of the Ho route is not permanent. It has been suspended for now and the company is assessing the situation to ascertain the way forward.”

Read also: Use strategic stocks to reduce high fuel prices-Terkper

The flights were scheduled for weekends to Ho at a GH¢150 fare which saw some traffic, but that declined over time.

Speaking to aviation specialist, Sean Mendis, he noted that the suspension of PassionAir’s flights to Ho “was unfortunately inevitable in the current conditions.”

He added that “developing a new route like that [Accra-Ho] requires proper scheduling around a hub bank, something that PassionAir simply doesn’t have the distribution capability to implement at this stage”.

Sean Mendis further stated that “if there was a way to make the route work under present conditions, Africa World Airline (AWA) would have already started it.”

According to Mendis, “the problem in Ghana right now is that the existing markets are growing so fast that you can’t really afford to waste an aircraft developing a loss-making route to Ho for a few years when the opportunity exists to make money in Tamale or Takoradi instead.”

Comments

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