All Go in Ghana: New West African Flights

Virgin’s operations to Accra begin on May 24 (subject to final government approval), using A340-300 equipment, complementing the carrier’s existing African network, as summarised:

Source: IATA BSP DATA (Airport IS) Nov 08-09

Virgin’s decision to serve Accra is not surprising given the sizeable market and high fares offered by BA, which has, until now, been the only UK full-service carrier to serve Ghana, with daily flights from London Heathrow. Ghana International Airlines operates to Accra three-times weekly, but from London Gatwick.

The latest CAA statistics show that 167,000 passengers travelled directly from the UK to Ghana last year. Although this figure has declined from a peak in 2006, it is still 20% higher than 10 years ago (140,000 passengers). And BA currently has a little over 70% market share, with 106 weekly departures: 99 from London Heathrow and seven from Gatwick to a total of 16 African destinations.

According to CAA figures, annual traffic from the five UK airports: Glasgow, London Gatwick, London Heathrow, London Stansted and Kent Manston (combined), total annual traffic to Ghana has grown steadily from 106,637 passengers in 1997 to a peak of 213,533 in 2006. Since that time, there has been a consistent dip in numbers, reaching 167,484 in 2009, but this could be part of the fall-off in demand globally in response to the financial crisis.

Why Ghana?

Although the routing attracts a strong VFR market, Virgin will be trying to tap into the market’s future potential both in terms of leisure and business (particularly oil industry related traffic). Virgin will try to stimulate leisure traffic, perhaps with the support of its tour operator, Virgin Holidays.

Steve Ridgway, chief executive of Virgin Atlantic explains its move into West Africa: “We are delighted that we are able to launch services to this fast growing and vibrant capital city with its historic links to Britain, thriving economy and growing oil and gas industry.”

“Virgin Atlantic’s new services will bring much needed competition onto this route, breaking BA’s virtual monopoly. Nearly 200,000 people fly between London and Accra each year and our new services will give them more choice and better value for money,” he added.

Growing Economy

Ghana has a population of over 23 million people and a GDP in excess of $36 billion. Accra is at the heart of this economy, with a population of over three million.

There is immense goodwill towards the UK, with strong cultural and commercial links and a large expatriate community in the UK.

GDP growth is estimated 4.7% for 2009 and forecast at 5.4% for 2010 and 12.5% for 2011 (EIU Dec 2009).

Virgin’s Ridgway, commented: “Ghana is a beacon for economic success in West Africa and we look forward to offering the best possible service to travellers between Ghana, the UK and the United States.”

Africa is however a highly regulated market with there generally being a limit on the number of slots available to foreign carriers.

Routes News has highlighted the largest 10 markets (based on passenger numbers) from London Heathrow to Africa (including Mauritius) for the 12-month period between November 2008 and the same month in 2009.

Source: IATA BSP

The figures tabled above include all passengers flying non-stop and passengers that have also transited between the city pairs.

Virgin Atlantic already serves five of the top six markets, with the seventh largest market being Accra. Virgin currently does not serve Egypt, due to bilateral restrictions.

The largest unserved market from London Heathrow and Africa is Durban, with 40% of passengers currently flying via Johannesburg using Star Alliance member South African Airways.

However, with Durban’s new King Shaka International Airport ready to open in May before the World Cup, Airports Company South Africa will be hoping to attract some new direct international service in the future.