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Ghana International Airlines collapses

17-May-2010 12:09 PM

Ghana International Airlines was unable to transport passengers at airports in Accra, London and Düsseldorf on 14-May-2010 following reports of the carrier's financial collapse (Daily nation, 16-May-2010). Crisis negotiations to hire a private jet failed over financial arrangements, and all passengers were handed letters from the airline stating "the flights are terminated till further notice". GIA is owned by the Ghanaian Government (70%) and a US consortium (GIA-USA) (30%) but shareholders have been engaged in a legal dispute since 2006. The Government has reportedly been looking for partners to recapitalise and restructure the airline. Management of the company ceded to the minority partner under an agreement reached in 2006. The company encountered difficulties soon after it was established when the Government dismissed the minority shareholder, GIA-USA and terminated Brian Presbury’s contract as COO.