Concession granted to American Airlines nothing unusual – Govt

In light of calls for the release of an agreement signed between Government and United States air carrier American Airlines to operate out of the Cheddi Jagan International Airport (CJIA), Public Infrastructure Minister David Patterson said there is nothing to fear.
Opposition Member of Parliament (MP) Juan Edghill has called for Government to disclose in its entirety, the agreement it signed with American Airlines to operate here, based on reports that Government may have waived a significant portion of the landing and air navigation fees for it.
But Patterson declared Monday that almost all new airlines that come to Guyana and even chartered ones are all given a concessional period in which a “startup incentive” is given to it. “Every single airline including Copa, Dynamic has received this,” he explained.
According to media reports, American Airlines gets a 90 per cent concession on the landing fees. But Edghill, who shadows the public infrastructure portfolio in the National Assembly, said Government needed to say how that agreement would benefit Guyana.
“Is this compatible with any concession that has been granted to any other airline that has operated in Guyana in the past or is operating currently?” he questioned.
According to the Minister, these concessions do not last forever. “So this happens for a period and not all the time. Most of them last one year to help them with their establishment and after then they would have to pay their full share. There is nothing to worry about,” Patterson said.
Edghill had also demanded that Government explain how this move will impact the lowering of airfares to Guyana, stating that since the airline entered the market, airfares have not reduced.
But again, Patterson believes that this concession does not create room for any unfair competition because at one point or the other airlines currently operating out of CJIA, including Caribbean Airlines, COPA Airlines and the rest have benefited from the same arrangement.
On the issue regarding the US-owned airline allegedly targeting high-end passengers who are coming to conduct oil business in Guyana, Patterson also denied this.
Edghill had said while the Opposition is not against concessions, they believe that concessions must be granted with the aim of bringing value to Guyana.
“It must be equitable, non-discriminatory and it must not be putting another airline out of business, because they have to pay more. It must be a competitive arrangement,” he explained.
The MP said without having all the information; the Opposition was very concerned about it and is asking for transparency and full disclosure on this matter.
Activist and commentator Christopher Ram has said that Guyana should not allow oil companies and any of their subcontractors to continue using American Airlines given the exorbitant travelling rates.
American Airlines started operations here in the latter part of 2018. It has an average of nearly 6700 flights per day to approximately 350 destinations in more than 50 countries.
The airline uses an Airbus 319 with capacity for 120 passengers to fly to Guyana from Miami four times per week, departing from Miami at 18:00h and arriving in Georgetown at 22:40h. The return flight usually departs at 01:15h and arrives at 04:55h.
However, the airline had the highest ticket prices for travel between Guyana and Miami. In some cases, the cost of a one-way ticket is as much as seven times higher than the cost of tickets to the same destination on other air carriers.