The Ghana Airports Company Limited (GACL) has started new business development strategies to diversify revenue sources into non-aeronautical activities to increase its profitability.
The company maintained that its new project, christened the “Airport City 2” project, would feature largely in the airport operator’s efforts to enhance its non-aeronautical revenue base in the coming years.
Addressing the eighth Annual General Meeting (AGM) of the company in Accra yesterday, the Managing Director (MD) of the GACL, Pamela Djamson-Tettey, explained that the approach would produce tangible results and transform the revenue generating capacity of the company.
It would also drive the vision to make the Kotoka International Airport (KIA) a true hub and leader in the airport business in West Africa, she added.
The project covers a designated project site of about 272 acres located around the KIA.
It will occupy the portion of land to the right along the airport bypass road from the Airport Shell Roundabout (south) to the Spintex Road, opposite the Action Chapel (north), and bordered on the west by the Polo Grounds and east by Terminal 2.
The plan is to develop the site into a high-end mixed-use commercial, residential, lifestyle and entertainment precinct that dovetails into the general landside infrastructure expansion programme.
Infrastructure work within the enclave would be pegged at standards comparable to internationally well-known real estate development projects, the company explained.
These include water, power, roads, drains and ICT backbone.
Ms Djamson-Tettey commended the GACL staff for their resilience and exemplary workmanship throughout the business recovery process following the overwhelming and unparalleled effect of COVID-19. The GACL posted a loss of about GH¢252 million for the year ending December 31, 2021.
She said that position was an improved performance compared to the loss of GH¢435.5 million in 2020, explaining that the underlying factor was a significant increase in financial cost for the loan facility secured for the construction of the KIA Terminal 3.
The Board Chairman of the GACL, Paul Adom Otchere, stated that in Ghana, air traffic movements in 2021 exceeded that of 2020 by 50.4 per cent after the government eased travel restrictions and reopened the country’s borders for flight operations in 2021.
Air traffic movements for both international and domestic schedules showed strong growth, with international growth at 53.9 per cent and domestic growth at 46.1 per cent.
A Deputy Minister of Transport, Hassan Tampuli, commended the board and management of the GACL for steering the company out of the financial challenges brought about by the pandemic.
Mr Tampuli said the Ministry of Transport had made several interventions, including the review of the domestic airport passenger service charge to ease the financial burden on the GACL.
He said the infrastructure developments being undertaken at the regional airports were enough justification to pursue the review and would relieve the KIA of the burden of subsidising the regional airports.