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ExxonMobil’s exploration…. Guyana is paying for American Airlines presence here
Last year November, US aviation giant, American Airlines, started flights between Guyana and the US, adding the important Miami to Timehri route.
It was widely thought at the time that the coming of flights from one of the biggest airlines in the world would help to bring prices down.
However, the presence of American Airlines has done everything but help to drive prices down.
From all indications, the prices of American Airlines tickets are as astronomical as they can get.
And the reason is American Airlines are targeting mainly employees and others related to the oil exploration operations currently ongoing in Guyana.
Guyana as part of its oil profit-sharing arrangement with ExxonMobil for the Stabroek Block is responsible for all oil exploration expenses including those for travel and accommodation. The travel expenses include the cost of air tickets for the staff of the oil companies.
The comparative fare structure of American Airlines and Caribbean Airlines on the same day for a return ticket.
American Airlines has perhaps the highest ticket prices for travel between Guyana and Miami. In some cases, the cost of a one-way ticket is as much as seven times higher than the cost of tickets to the same destination on other air carriers.
For example, a business class round trip flight to Miami via Caribbean Airlines between February 6 and March 6 cost approximately US$800 on other airlines plying the same route. On American Airlines, the same ticket would cost US$6,059.
Caribbean Airline Economy round trip ticket to the same destination on the same date is US$474.
For American Airlines the cost is US$3,179.
The ExxonMobil staff is flown home every 28 days on rotation. Reportedly, American Airlines, which uses an Airbus 319 aircraft with 130 seats, is the main carrier for the oil companies operating in Guyana. Local company Roraima Airways is handling the ground operations on behalf of AA.
Last Monday, the price for a one-way economy class ticket from Guyana to Miami from Caribbean Airlines, was US$295. Whereas, the price for the same ticket from Suriname Airways on the same route was US$285.
For American Airlines, it was more than double at US$731.
Guyana was handed a pre-2015 exploration bill of more than US$800M by ExxonMobil. Later this year, it will be handed another bill for post-oil cost. Those costs include hotel accommodation, air travels, and other miscellaneous expenses.
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