Govt eyes GDF commercial arm to slash soaring hinterland airfare prices

…as VP warns domestic airlines over price gouging

The Government of Guyana has revealed that consideration will be given to develop a commercial arm of the Guyana Defence Force (GDF) to help inflation in the interior locations if domestic airlines continue to raise their prices.
This was revealed by Vice President (VP), Dr Bharrat Jagdeo on Tuesday during day two of the National Toshaos’ Council (NTC) Conference 2025.
The aim of the consideration, the VP said, is to keep air freight prices low for Guyanese citizens transporting goods and traveling to hinterland communities and also compete with domestic airlines that continue to exploit consumers.
According to Jagdeo, based on observations, aircraft operators are hiking their prices every year during the NTC season— a period where a number of indigenous leaders and community members venture out from their hinterland communities to attend the conference in Georgetown.

“And every time, it seems as though before every NTC, these aircraft operators raise the rate. It seems like they just wait before the NTC to raise the rates again.”
In this regard Jagdeo highlighted that the Government had engaged aircraft operators regarding the issue. However, if the trend continues Jagdeo noted that the Government would be fully committed towards establishing a commercial arm of the GDF to compete with private aircraft operators.
“So, we’ve had some discussions with them, and if they can’t be reasonable about these rates, then the Government will invest in a commercial arm of the GDF to compete with them so that we can keep these rates, the freight rates down… in fact, we may very well buy four more of the aircrafts that we’ve just bought to do that in the next term in office.”
Moreover, Jagdeo revealed that airlines who operate in areas that are not easily accessible by roads argued that they are not the ones inflating prices. According to them these airlines are often chartered by big businesses who then raise the airfare particularly for cargo.
In this regard the VP revealed that conversations will be held with village Toshaos to identify whether a similar system could be utilised for them.
“This is for some of the communities, particularly that fly goods in, not like Lethem so much, Region Nine where a lot of the goods go by transit land. So, I want to discuss this afternoon with the Toshaos whether some of the villages can charter the plane too, instead of the private businessmen chartering it… They said they expressed a desire to do that, charter the plane, and then arrange for the people who are using it in the villages to get the lower freight rate we’ll discuss that this afternoon that’s one thing that’s a big concern of ours.”
Additionally, recognising the increase in demand for goods and services in hinterland regions, VP Jagdeo also revealed that his Government will upgrade several airstrips allowing larger aircrafts that can carry a significant amount of freight to access these areas.
“But in the hinterland, the biggest concern has been the cost of transit, moving people and goods into some communities. So we plan to also upgrade and expand a lot of these airstrips so that bigger aircrafts can go, and then especially in areas they can’t go. And then we are going to operate a Government-owned service, if we can’t solve this problem of the gouging in the market.”
The Government is actively working to improve and maintain hinterland airstrips, recognising their crucial role in accessing remote communities and supporting economic activities. This initiative is part of a broader plan to enhance air transport infrastructure and ensure equitable development across the country.
Billions have been allocated in Budgets 2024 and 2025 for the rehabilitation and maintenance of airstrips across the country, aiming to enhance connectivity and support economic growth in the hinterland regions.