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The big shaft

Feb 04, 2019 Features / Columnists, Peeping Tom

Kaieteur News is undeniably the number one newspaper in the Caribbean. Its unrivaled record of unearthing massive political corruption and exposing public scandals place it ahead of even the grandfather of Caribbean newspapers, the Trinidadian Guardian which has been around for more than one hundred years.
This country owes an enormous debt of gratitude to Kaieteur News and its untiring publisher, Glenn Lall.  Had it not been for Kaieteur News, many of the scandals which took place and are still taking place in Guyana would not have seen the light of day.
The public is wiser and more knowledgeable of the skullduggery in the country because of Kaieteur News. That Kaieteur News reigns supreme as the country’s number one daily should not come a surprise.
Kaieteur News, true to its record, continues to provide a service to the Guyanese people. The latest scandal which it has exposed is the rip-off which is taking place by American Airlines.
American Airlines came to Guyana because of Exxon. The Miami-Guyana route only became attractive to American Airlines because Exxon is prepared to pay premium process for air travel. As this newspaper exposed yesterday, the cost can be seven times higher to travel by American Airlines to Guyana than by Caribbean Airlines.
Now this fact may seem mind-boggling. The public may be asking themselves how it is that American Airlines can charge such high prices and still remain competitive.
The answer is not difficult. American Airlines is able to do this because of the captive market it has with Exxon Mobil. Exxon Mobil has to shuttle its employees to and from Guyana and it is paying the high prices which are demanded by American Airlines.
American Airlines is smiling all the way to the bank. It can return to Miami with an empty plane and still make a profit.
It costs an airline on average of US$5,000-6000 for every hour of travel time. This is what a wet lease, inclusive of fuel and crew costs. It takes four hours travel time to Miami. This means that it would cost an airline between US$20,000-US$ 24,000 for each flight between Miami and Guyana.
With Exxon Mobil willing to pay more than US$6,000 per ticket for a business class seat, all it will take is four such passengers each way for the airline to cover its expenses.
It is easy to say that Guyanese have the option to travel by a cheaper carrier. They do. But who do you think is paying for these US$6,059 business class seats?
Yes, you guessed right! It is Guyanese taxpayers who are paying as part of cost recovery under the oil contract between the government of Guyana and Exxon.
As reported yesterday, 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 of Exxon staff. The travel expenses include the cost of air tickets for the staff of the oil companies.
That is why Exxon is prepared to pay the high prices demanded by American Airlines instead of travelling on the much cheaper flights offered by Caribbean Airlines. They do so because they can reclaim the costs from the Guyanese taxpayers as post-oil costs.
And American Airlines do not have to drop their prices because they know they will get business from Exxon.
Kaieteur News is now hated by the APNU+AFC government because it exposed the rotten deal which was signed with Exxon Mobil. That deal is now made more rotten by this rip-off in airline fares.
And this is what the Guyanese people can see. What about the hidden costs which we cannot see and of which it knows very little about? How can Guyana ever be sure that it will not be taken to the ‘cleaners’ by the oil companies?
The signs are clear that Guyana is going to be violated by these oil companies. Guyana is going to be shafted ‘good and proper’ and without any lubrication.
When these oil companies and their cohorts in business finish with Guyanese, we will all be walking sideways.

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