ABSTRACT
This chapter examines why some state-owned enterprises fail despite having government backing. It on the case of Air Afrique, which was a "multi-national airline" in the civil aviation sector, jointly owned and operated by multiple nations. The chapter holds that Air Afrique was one of the first quintessential international businesses in post-colonial sub-Saharan Africa. It concerns the ways in which a firm supported by multiple states can become so mismanaged and eventually cease operations. The chapter draws heavily on Amankwah-Amoah and Debrah's paper on the airline and adds new perspective, extensions and insights, which explains the causes of business failure. This research on business failure has largely focused on multi-national or small businesses with little emphasis on multiple state-owned enterprises. The chapter presents a review of the literature on bankruptcy and examines the historical backdrop to the Air Afrique story, 1961–2002.
