Both the Aircraft Owners Association of Guyana (AOAG) and the National Air Transport Association (NATA) have expressed grave concern over the accusation by the Guyana Civil Aviation Authority (GCCA) of ‘price gouging’.
In a press release yesterday, the AOAG said it “completely rejects” the assertions made in a GCAA press release on Saturday which accused all domestic aviation operators of increasing airfares and is “shocked” that the Authority should do so without first checking the facts.
NATA in its press release echoed similar sentiments, stating that it is “quite concerned and taken aback by the recent comments attributed to the Director General of the GCAA, Lt. Col. (Ret’d) Egbert Field in which he referred to the local aviation industry as ‘unscrupulous’ and accused it of ‘price gouging’.
And AOAG termed it as “most unfortunate” that Field, should use terms such as “unconscionable” and “unscrupulous” to describe the entire industry based on a complaint made by the Amerindian People’s Association (APA) of an increase in passenger and freight prices which, in fact, it claims, referred only to one operator, Air Services Ltd, operating exclusively, at the time, in Region Eight.
The AOAG, which comprises Trans Guyana Airways, JAGS Aviation, Wings Aviation and Roraima Airways (which is also a member of the National Air Transportation Association – NATA), emphasised that its members have not increased their prices in spite of the restrictions imposed on the industry by the COVID-19 Task Force through the GCAA.
The Association explained that the shutdown of almost all passenger operations in the interior have led to a more than a 50 per cent reduction of all flights and making the removal of VAT “ineffective and leaving our members struggling to stay in business.”
However, it acknowledged the concerns expressed by the APA and the Government with regard to Region Eight’s food and freight supplies and has decided, therefore, to immediately look at introducing flights to provide relief in this area.
AOAG assures that since the advent of the COVID-19 pandemic, it has introduced stringent protocols to ensure the safety of its passengers, including 100 per cent temperature testing of all passengers and staff, sanitising of aircraft before every flight, the compulsory wearing of face masks and hand sanitising before passengers and crew board the aircraft. All cargo is similarly sanitised.
As if these strict precautionary protocols being applied were not enough, the Association lamented that the COVID-19 Task Force has further enforced a 50 per cent passenger restriction -which was initially set at 75 per cent – on all domestic flights. In addition, the Task Force has stopped all passenger flights to border destinations, which, “inexplicably”, have included Matthews Ridge and Port Kaituma, even though these border locations were already closed off and a No Fly Order was in place for all foreign travellers.
The AOAG says it has discussed these matters with the GCAA, advising that the measures being enforced by the COVID-19 Task Force are “excessive”, given the mitigation measures already in place against the risk of spreading the virus, and that these measures have been taken “without sufficient regard for the negative economic impact on the hinterland communities.”
It also observed that while, in Guyana, domestic airlines are suffering from “punitive COVID-19 restrictions and are being threatened with Government control”, in other countries, Governments are moving to bail out airlines in financial trouble resulting from the COVID-19 pandemic.
The AOAG asserts that while these restrictions are being placed on aviation traffic to border areas, it says there is “ample evidence” of “little or no enforcement” in place on the ground as passenger vehicles and boats continue to operate freely at these locations.
Reminded
NATA, for its part, reminded that the aviation industry has been hit particularly hard by the necessary measures to combat the COVID-19 pandemic. It iterated that in its effort to contribute, the industry has introduced measures above and beyond those required by the National COVID Ministerial Task Force. However, it informs that while such measures have increased the industry’s operating costs at the worst possible time, when it is “struggling to stay afloat”, none of its members has increased their Aircraft Hourly Rates, and in fact some have applied reductions to their Aircraft Hourly Rates.
NATA explained that these hourly rates are the minimum rates chargeable if the required level of safety the public expects is to be maintained. Rates are a “creature of our costs including employees, facilities, critical spare parts, and insurance.” However, it did point out that cargo-only operations are unaffected.
The Association added that for passenger operations however, the mandate to operate at half of passenger loads has necessitated adjustment of passenger fares in order to maintain the Aircraft Hourly Rate. Operating aircraft for half the cost is not feasible, it declared, and the lower rates charged in Guyana severely constrain accumulation of large rainy-day funds for private subsidy of operations.
In an effort to mitigate this situation, the subject of mixing Cargo with Passengers, referred to as Combi-Flights has been raised. This is done when possible. However, there is only so much cargo available for Combi- Operations. COVID-19 has seen a drop in both cargo and passenger volumes and there is only so much creativity the industry can apply to remain afloat.
NATA says its members have been in constant contact with the Guyana Civil Aviation Authority, providing whatever clarifications that were requested in a timely fashion, with lengthy and detailed explanations, and are therefore “extremely perturbed and disappointed in the Director General’s characterization of aviation industry operators, adding, “The Director General in our view is a man with tremendous knowledge and experience at all levels of the industry and understands the economics required to deliver a safe and efficient service.”
According to the Association, commercial aviation, for intelligent reasons, has always been driven by market forces, and any attempt to influence its economics, though pregnant with good intentions, will result in exactly the opposite of the intended outcome.
