THE EXPLOITATION OF GUYANA

Feb 14, 2019 Editorial

Since the turn of the century, Caribbean Airlines has been the flagship airline carrier for Guyana. However, there has been constant pressure on Governments by Guyanese, especially those in the Diaspora to have more airlines ply the US-Guyana route.
Poor services, high fares and mistreatment of Guyanese by immigration and custom officials in Trinidad have led to the demand for more airlines. This government has recognized the need to improve the country’s air and land connectivity, especially with oil production scheduled for 2020. It has often been said that Guyana geographical location has made it a potential hub between the U.S., South America and the rest of the world.
In recognition of the increasing number of visitors, oil experts and business officials who will be travelling to Guyana, American Airlines has decided to add Guyana as its 19th South American route. It is the only U.S carrier to offer airline services from the U.S to Guyana at the moment.
It made its inaugural flight from Miami to Guyana last November and has scheduled four flights per week.
Currently, Caribbean Airlines, Fly Jamaica, COPA Airlines and American Airlines are serving the Guyana-US route. Many in the public including Government officials believed that with the addition of the Houston-based carrier and the world’s largest airline, American Airlines would have lowered airfares between the U.S and Guyana, but that is not the case.
Recently, there have been many complaints by Guyanese about the high cost of American Airlines tickets from Miami to Guyana, but it has fallen on deaf ears. As reported in this newspaper, when compared to the other airlines, American Airlines airfares appear to be six times higher for a round-ticket between Miami and Georgetown.
For example, the cost for round-trip economy-class ticket from Georgetown to Miami using Caribbean Airlines is roughly US$700.00. For American Airlines, according to a search on the computer, is over US$3500. Caribbean and other airlines charge about US$1000 for a round trip business class ticket while the American Airlines published charge appears to be more than US$6,000.
Representatives of the airline say that the figures are out of kilter with reality. They point to the cost of the ticket when they are for travel between Guyana and Miami on the days when the airline travels between the two countries. They say that the charge is sometimes less that Caribbean Airlines.
At one stage it was thought that the high charge was to capitalize on ExxonMobil’s operation in Guyana.
Guyana has been slow in verifying the pre-exploration expenses of US$900 million submitted to the government by ExxonMobil. Further, it is not certain that accountants have been hired as yet to audit the cost.
With Exxon investments in the billions, any miscalculation could cost Guyana hundreds of millions of U.S dollars in profits.
Under its contractual agreement with ExxonMobil on oil revenues, Guyana will receive two percent royalty, but is likely to receive very little of its 50/50 share of the profits after ExxonMobil and its partners deduct their investments costs and expenses.
Part of the expenses could include the cost of American airlines tickets for staffers to travel back. ExxonMobil has the right to choose American Airlines or any other airline for that matter as its choice of preference for its employees to travel, but the expense should not be borne by the Guyanese taxpayers for services that can be rendered far cheaper at other airlines.
This is definitely not putting Guyana first, which is unlike Mr. Trump who is putting America’s interest first.

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