Just under a month before it relaunches its operations with nonstop flights to New York, TravelSpan’s principals are assuring that the airline is here for the “long haul” and is seeking the support of travellers to withstand expected predatory pricing by rivals.
“We want to clear up the misconception that we are just here for peak season and will leave after… we are here to stay but we know that is dependent on the people so are saying to them, ‘We are here for you and for the long haul… airlines will now lower their fares but we are prepared,’” President of the company Nohar Singh told Stabroek News in an interview on Friday.
Singh and Director on the company’s board Rob Binns sat down with Stabroek News to discuss the idea behind TravelSpan’s re-launch and future plans for Guyana.
Both Singh and Binns emphasised the company’s dependence on the loyalty of travelers and noted that given the market practices that led to other carriers failing, they are aware and are prepared whatever may come.
“The people are aware, they know what happens…when an airline enters the market there is a certain airline that will begin dropping its fares with the aim of forcing that airline out. And when that happens, they raise their fares again… but people know that once it sounds too good to be true, it isn’t …we need their support,” Binns, former CEO of North American Airlines, said.
With the restart of its operations, TravelSpan would be the only local carrier offering nonstop flights between Georgetown and New York, which is an in demand route.
Its launch of nonstop flights to both New York and Trinidad on December 14 will come weeks after the United States Department of Transportation rejected applications by Caribbean Airlines (CAL) and Fly Jamaica to offer nonstop flights from Georgetown to New York.
The last such option was provided by Delta Airlines, which pulled out of Guyana in May this year without fully explaining why. It was felt in some quarters that Delta believed that it was facing unfair competition.
Both CAL and Fly Jamaica would have been seeking direct flight permission to corner more of the market here. The rejection came due to objections raised by the Air Line Pilots Association (ALPA) and Airlines for America (A4A). Fly Jamaica has since appealed.
The denial of the applications has meant that Guyanese have to pay relatively high fares between Guyana and New York.
Fly Jamaica had asserted that denial of its application would result in the continuation of anti-competitive conditions whereby CAL would have been the only carrier providing non-stop service in the New York (JFK)-Georgetown market, if it had been granted permission. Fly Jamaica further asserted that the majority of the arguments raised by ALPA and A4A pertain exclusively to the application of CAL and to the government of Trinidad and Tobago.
A veteran aviation expert, who requested anonymity, pointed out that while the government of Trinidad and Tobago this year announced that its subsidy to CAL would be cut, a few days later the airline was provided with TT $400.7M in other subventions. Trinidad and Tobago’s Finance Minister Larry Howai, in confirming the figure, said that it was to facilitate the airline’s restructuring process.
The veteran aviation official said that in his estimation the money was just a “fuel subsidy by another name.” He blasted CAL for upping its fares to sometimes as much as US$1600 return, from New York when no other airline flied the route. “Some may hold to the argument that CAL has been with us for years but CAL is with us because this is their most feasible market… they won’t give up Guyana,” he said.
Observers have also pointed out what they call “killer fares” by CAL and pointed out that TravelSpan should be prepared for price wars.
Binns said that having been in the travel industry for over 18 years and watching companies come and go, TravelSpan will not make the same mistake to offer non profitable flights at the risk of going into bankruptcy. “There was a period when we saw other companies operating on ‘shoe string budgets’ when we were in business and with the global recession economic climate we made the decision to pull out. We did not have any issues with passengers and our record is there… but we felt at that time that was best for us so we could live another day,” Binns asserted.
He said now the company prefers to make a small but constant profit and believes that over time the Guyanese public will trust the airline enough to make it a household name.
He informed that all paperwork required by the Guyana Civil Aviation Authority (GCAA) was met and that the company had placed the required $40M bond. However, while admitting that there was the possibility that the bond may not be enough, should the airline fail, the company wanted to assure travellers that they will ensure they are all taken care of.
The company is also boasting some of the most stringent drug detection measures, while emphasising that most of its internal security agents are from the United States. Binns said that the company cannot afford to pay high penalties for drug busts made on its airlines and stressed that persons should not take their lives to chance with trafficking in narcotics and illegal items. “It (drug enforcement) is a great focus we can’t take the chances to have penalties… we have some of the best security experts from afar,” he said. While he did not go into detail about the company’s security provisions, Binns said that they were also teaming up with local law and drug enforcement officials.
Flights will leave JFK at 1am on five days of the week during the Christmas Season and two days per week when the peak season ends. The aircraft will depart Guyana at 5 pm on travel days and Singh said this was to accommodate travelers countrywide who would sometimes have to overnight to travel overseas. He said that this way also most relatives in New York will be able to see their loved ones Guyana bound.
Fares are US$349 one way or US$652 roundtrip all taxes inclusive and can be purchased both online at www.travelspan.com and at local agents countrywide.
The trip comes with hot meals and cabin assistance service geared to cater for persons, especially the elderly, needing help filling out their forms answering questions and help with storing carry on pieces.
