By Fatou Krubally
Gambia International Airlines (GIA) has lost more than 60 percent of its revenue due to increased competition from private companies providing ground handling services at Banjul International Airport, the airline’s Managing Director has told lawmakers.
The disclosure was made on Tuesday during a review of GIA’s 2022 financial statements by the National Assembly’s Public Enterprises Committee.
Addressing the committee, the Managing Director Numo K Sanneh described the revenue decline as “serious,” warning that it has negatively affected the airline’s operations, employment capacity, and ability to reinvest earnings into the national economy.
“It is not only GIA that is losing; the whole Gambia is losing,” he said, explaining that intense competition has driven down fees for ground handling services.
According to the Managing Director, before the entry of private operators, GIA set handling rates that enabled the company to sustain its operations, invest in staff development, and maintain infrastructure. However, competitive pricing has significantly eroded those revenues.
He cited an example in which a handling charge for an airline dropped from €7,700 to just €350, a reduction he said severely undermines both company income and government revenue.
As a state-owned enterprise, GIA’s earnings are expected to contribute to public revenue, cover operational costs, and support employment. However, the Managing Director confirmed that the sharp decline in income has forced the airline to suspend recruitment, despite continuing high operational overheads.
Committee members were also briefed on GIA’s cash-flow challenges, including the use of bank overdrafts to meet operational expenses. The Managing Director clarified that some funds reflected in the airline’s bank accounts are not company revenue but deposits held on behalf of ticket purchasers, and that reliance on overdrafts is directly linked to reduced income.
Lawmakers further raised concerns about compliance and procurement practices within the airline. In response, management assured the committee that GIA’s procurement unit is now properly structured and certified, with the capacity to handle emergency purchases while fully complying with the Public Procurement Act.
