– will return once there is level playing field, says ambassador
United States Ambassador to Guyana, D Brent Hardt said several U.S. airlines have expressed interest in the Guyana market, but they are concerned about the subsidy being granted to at least one regional carrier and the small size of the Cheddi Jagan International Airport.
Ambassador Hardt made the disclosure during an exclusive interview with Guyana Times International earlier this week.
“There has been a concern that Caribbean Airlines fuel is being subsidised, making it harder for American carriers to compete in Guyana,” he explained. His comments come approximately five months after North American carrier Delta Airlines abandoned Guyana’s market.
In May, Delta Airlines wrapped up operations in the country to concentrate on other business deals. The inability to full their planes to the built capacity and drug trafficking at the Cheddi Jagan International Airport (CJIA) were among other concerns expressed by Delta.
But Ambassador Hardt said although Delta Airlines has left Guyana’s market on the basis of profitability, he maintained that other American carriers have vested interest, but are demanding a level playing field.
“I understand that some would be interested if the CJIA had a longer airport because that would allow them to bring in different types of planes that require a longer runway.”
However, regarding the subsidy to CAL, the Trinidad and Tobago government back in September announced that it was removing government-subsidised fuel effective on October 1 from the airline.
In his budget presentation in the parliament on September 8, Finance Minister Larry Howai said the debt-ridden state airline must move towards the adoption of a financially-sound business model for positioning the airline in targeted segments of the global tourism market. The fuel subsidy for CAL was estimated to be TT$300 million.
Direct flight ban
Meanwhile, clearing up what he said were misconceptions surrounding the U.S. Department of Transportation’s recent move to deny Caribbean Airlines (CAL) and Fly Jamaica permission to have direct flights between Guyana and the U.S., Ambassador Hardt said the two carriers made their applications under the Seventh Freedom Right, which is different from the open skies agreement, Washington and Georgetown signed earlier this year.
The U.S. ambassador posited that permission is rarely granted under Seventh Freedom Right; however, the United States Department of Transportation made its decision following consultations in the U.S. with affiliates in the aviation industry who objected to the application.
On the other hand, the opened skies agreement which was signed between Guyana and the U.S. in March has liberalised aviation relationship between the two countries that permits unrestricted air services by their airlines. This replaces the 1946 agreement between the governments of the United Kingdom and the U.S. that had been in effect since 1966 when Guyana gained Independence.
According to the U.S. ambassador, the objection was also made on the basis that the U.S. can still tap into the local market with increased tourism and trade.
Currently, Caribbean Airlines, Fly Jamaica and Surinam Airways are the only air carriers offering international flights out of Guyana.
Only recently, acting Tourism, Industry and Commerce Minister Irfaan Ali urged all businesses to petition the United States Department of Transportation to allow Fly Jamaica to operate direct flights between Guyana and New York. In a statement, Minister Ali reiterated the need for all stakeholders, including the business community, to rally in support of the new airline.
He said the decision by the U.S. will only increase the operational cost of the airline, which will undoubtedly affect ticket prices.
“The government has been working hard to build and maintain capacity in the air transport sector and we acknowledge that Fly Jamaica’s operations in Guyana will aid in significantly boosting the capacity in the local air transportation sector; we know too that a significant percent of the Guyanese diaspora live in or near New York, and this decision has also left Guyanese without a direct flight option to New York.”
