Govt. grants American Airlines 90 % concession on landing fees

Mar 03, 2019 News

It appeared that the coming of American Airlines (AA) to Guyana in November was a big deal for the Government of Guyana.
According to aviation officials, Government decided that do something unusual. It waived a significant portion of the landing and air navigation fees.
While other airlines pay around US$425 every time a plane lands, AA was granted a reprieve.
It is only required to pay about 10 percent or US$42 to the Cheddi Jagan International Airport.
The concession/waiver would raise several questions.

Government has reportedly granted American Airlines a concession/waiver on its landing and other fees, allowing it to pay 90 percent less than other airlines.

AA, one of the biggest airlines in the world, is US-owned.
It came last year, targeting the big-paying passengers who are coming to conduct oil business in Guyana.
In fact, from all indications, the airline managed to snag a major contract as the official carrier for ExxonMobil employees operating in Guyana.
With oil set to start pumping as early as this yearend on the Liza 1 field, the US oil company and its partners will be requiring seats to fly out staffers who are working shifts.
There are concerns over those fares as Guyana and ExxonMobil have both signed an agreement where the profits are to be shared 50/50.
However, that is after the expenses have been deducted. One of those expenses is, of course, airline tickets for employees.
The higher the ticket prices, the less Guyana gets from the oil proceeds.
With regards to what the CJIA is losing from AA every time it flies here from Miami, Florida, well…there is a problem.
CJIA recently informed airlines operating at the Timehri airport that it will seek to recover costs of a bigger airport. That expansion is currently ongoing.
Every passenger will soon have to pay about $5,000 more on their tickets because of the expansion.
CJIA therefore will be hard-pressed to explain how it decided to waive their fees for AA when other airlines are made to pay.

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