CJIA rakes in $1B for 2012

Jan 08, 2013 News

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– Caribbean Airlines commanded 61% of market share

By Leonard Gildarie

The Cheddi Jagan International Airport Corporation (CJIAC), racked up revenue earnings of over $1B last year…a 46 per cent increase over 2011, all thanks to additional aircraft landings and an increase in passengers.
Income for 2012 amounted to $1,094M as compared to $748M collected in 2011.

The figures were released last week by the Ministry of Public Works during a review of the 2012 performances of its agencies.
According to Chief Executive Officer of CJIAC, Ramesh Ghir, the substantial areas of increase included advertising, concessions and rentals, passenger service charges and aeronautical revenue.
There were 4,630 international aircraft movements in 2012 as compared to 3,908 in 2011; an increase of 18 per cent.
“This $346M or 46 per cent increase was as a result of additional rental/concession fees and passenger service charges. Of the income collected, $424M was transferred to the Consolidated Fund.  This is 33 per cent more than the $319M that was transferred in 2011.”
The official, during the briefing at the Ministry’s headquarters in Kingston, noted that most of the additional income will be reinvested into the airport towards the improvement of its current facilities.
There was an increase of 13 per cent passenger arrivals for 2012.  The Immigration Division processed 267,652 passengers for the year 2012, as compared to the 236,344 processed in 2011.  Total passenger movement for 2012 amounted to 543,435 or 15 per cent more than that of 2011.
However, last year, CJIA’s business of cargo fell. Imported cargo amounted to 2,233 tons, representing a 33 per cent decrease over the previous year.
“Exports amounted to 1,845 tons or a 13 per cent decrease from that in 2011. Please note that there were significant increases of 16 per cent and 40 per cent respectively, on imported and exported cargo, in 2011 when compared to 2010.”

 

Expansion
Meanwhile, regarding the planned US$150M airport expansion, Ghir disclosed that work on the preliminary designs has already commenced, and actual construction is expected to commence in the second quarter of 2013. The contract period is 32 months.
The airport expansion project will entail the construction of a new terminal building measuring 14,000 square metres. The new terminal building will include eight passenger boarding bridges, two elevators, closed circuit televisions and ‘departures’ control systems.
The expansion will also involve extending the main runway by 3,500 feet to a final length of 10,500 feet, capable of accommodating the larger, wide-body Boeing 747-400 aircraft. There will be nine international parking positions including a dedicated position for cargo aircraft.
The project will be funded by the Government of China through its EXIM Bank. The total project is expected to cost US$150M. However, CHEC will be executing works to the value of US$138M.
During the past year, CJIA said that it saw significant developments in terms of activities with flights.
Caribbean Airlines launched a direct service, BW527, from JFK, New York, to CJIA on February 10, 2012. Additionally, a direct service to Toronto, Canada was also added in December 2012.
Late last year, Government granted Caribbean Airlines the country’s flagship carrier status.

 

CAL’s market share
According to Ghir, CAL commanded an authoritative 61 per cent market share with 1,594 flights and almost 305,000 passengers moved. These direct flights are being operated using the Boeing 767-300 aircraft.
Suriname Airways commenced a roundtrip service on the Paramaribo-Georgetown-Miami route twice weekly with its 126-seat B737-300 aircraft during April 2012. More than 6,500 passengers were flown with 148 flights conducted.
Also flying was Delta which flew 228 flights and moved 71,513 passengers. Delta managed to control 15 per cent of the market share.
According to the airport executive, last year, the airport lost two airlines due to economic reasons. “REDjet Airlines had all flights suspended from the 17th March and to date they have not indicated whether they may resume. Refunds to passengers has since commenced for tickets purchased.”
EZjet Airlines had its operations suspended due to similar reasons experienced by REDjet. This suspension of flights took effect from the November 9. “From all indications this Airline may not be able resume services in the near future.”
Redjet conducted 316 flights, moving 47,306 passengers with a 15 per cent market share.
EZjet was almost similar with 253 flights; a 13 per cent market share and flying 63,689 passengers.
According to Ghir, it is the intention this year to not only commence the massive airport expansion project but conduct a full-scale emergency exercise and rehabilitate the ‘departures’ washrooms. It is also the intention to revise the airport emergency plan and security programme and increase the security complement beyond 70 ranks.

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