EZjet Air Services Inc yesterday launched their newest route, a non-stop flight from the Cheddi Jagan International Airport, Timehri (CJIA) to Toronto, Canada with Chief Executive Officer (CEO) Sonny Ramdeo saying that they hope to partner with other carriers.
“We are looking to partner with other partners like LIAT and other companies to ensure we have a smoother flow of traffic whether it is out of New York so that passengers can connect to a LIAT or even a Caribbean Airlines flight to get to their destinations,” Ramdeo stated.
Ramdeo told Stabroek News that the company is continuing route exploration as part of their ongoing expansion and it is hoping to introduce direct flights to Port of Spain, Trinidad, Barbados and Brazil in the near future. “Along with the regional routes we are hoping to work with local carriers to operate flights to Lethem and some other destinations in the local area,” he added.
Ramdeo also reiterated his sole ownership of the airline, while adding that he did not borrow any money to start the operation or maintain it. “The size of the initial investment was approximately US$1.5M and during our first three months of operating we took a loss of about US$345,000 and since then the flights have been paying for themselves,” he said. He added that to meet the high customer demand, the airline operates all the days of the week.
When asked for an assessment of the company’s performance so far, Ramdeo said he believed they have created a stable market that is economically viable for their operation, which is why they want to expand. “We have created a stable market and we have roughly about a 99% load factor on all of our flights since mid-June, with the average occupancy level being approximately 89%, and the market has been profitable and that is one of the reasons we are continuing our expansion,” he explained.
With the price of aviation fuel affecting the operation of many airlines, Ramdeo said this is not the case with EZjet, since the market has been fluctuating in its favour. “Aviation fuel has actually dropped and fuel out of New York roughly sells for like US$2.72 and even locally in Guyana, when we started, fuel, it was like US$4.84 and it has actually dropped to like US$4.25, so the fuel market, depending on what goes on in the Middle East, fluctuates but within the past six months it has fluctuated to our advantage to keep our costs low,” he added.
EZjet had to deposit a bond of US$200,000 with the Guyanese and American governments before it commenced operation in December of last year. The relatively new air service has leased three jets—two Boeing 767-200 that operate from Georgetown to John F Kennedy (JFK) Airport, New York and the new Toronto route; and a 737-800 operating from JFK Airport to Port of Spain, Trinidad.
When asked if EZjet has made any efforts to be designated as Guyana’s flag carrier, Ramdeo stated that it has not because it really does not make any difference. “We are just here to provide the service; the national carrier thing is not a big thing to us because we can operate without flag carrying status and as a Guyana carrier we do have access to all the markets even without that status,” he said.
Speaking about the aircraft that was damaged on Saturday last, after a loading vehicle crashed into it, causing damage to the fuselage, the CEO disclosed that it has caused a setback. “Basically, for the recent[ly] damaged aircraft, we are waiting on some parts that conveniently got lost by one of the other carriers. Once we have those parts in, the aircraft will be ferried over to a maintenance facility where it will undergo three to five days of repairs and (be) put back into service,” Ramdeo said.
With the damaged aircraft, he added that there has been more demand on the crew. “…Because of that [the accident], we have one aircraft operating and it is creating a little bit (of) strain on us but we are hoping to bounce back really quickly,” he added.
Also in attendance, at the launching ceremony yesterday were Transport Minister Robeson Benn and acting Minister of Tourism, Industry and Commerce Irfaan Ali.
Benn stated that launching the new flight was a significant moment, since it shows Guyanese in the diaspora investing in Guyana. At the same time, he pledged on behalf of the government to remain committed in the development of the sector. While referring to the current scrutiny faced by the CJIA expansion project, Benn said that the air service environment is a competitive one and Guyana is moving backwards and it is his intention to move it forward. He also noted that the government has spent over $1B to upgrade the air traffic system.
Ali disclosed that the journey leading up to the actual provision of the flight by EZjet was a lengthy one, noting that discussions started several months ago.
He added that competition stimulates the market but noted that it must also be fair and must not be induced for the benefit of one side. On that note, Ali stated that government has been in talks to get other carriers to offer their service for the same routes so as to enhance the competition so that Guyanese can benefit.
Ali, meanwhile, announced a 17% increase in arrivals to Guyana compared with the same period in 2011. He dismissed suggestions that arrivals declined since the untimely demise of low cost service REDjet. He also challenged local investors to invest in the air services sector so that foreign investors will be less sought after.
EZjet made its inaugural flight to Guyana on December 16 last year and at that time only provided flights six days per week directly from CJIA to JFK Airport and back.
