Latest update January 19th, 2026 7:37 AM
Jan 19, 2026 Features / Columnists, Peeping Tom
Kaieteur News – The President of Guyana is right to be concerned about the high cost of internal air travel. For many Guyanese, domestic flights are not a luxury. They are a necessity. People in hinterland communities depend on aircraft for access to health care, education, work, and basic services. When airfares are high, ordinary people suffer.
The President has said that domestic airfares could be reduced by about 15 percent. Some local aviation carriers have announced fare reductions. But it is not clear whether the average reduction has reached that target. What is clear, however, is that the aviation sector benefits heavily from public support.
Each year, the government waives and foregoes billions of dollars in taxes for local aviation operators. These include concessions on aviation fuel, spare parts, and equipment. At the same time, the state spends billions more upgrading airstrips and opening new ones across the country. These investments are paid for by taxpayers.
These airstrips are not built for free. They require land clearing and regular maintenance. Once they are built, aviation companies are able to operate more routes, carry more passengers, and make more profits. There is therefore a direct link between public investment, tax concessions, and private profit in the aviation sector.
Given this reality, it is reasonable to ask a simple question. What does the public get in return?
At present, tax concessions are granted across the board. Airlines receive them whether fares are high or low. This makes little sense. If concessions reduce operating costs, then some of those savings should be passed on to passengers through lower fares.
Government should therefore link tax concessions to reduced airfares. This can be done through a clear and transparent formula. Airlines that reduce fares by an agreed amount should qualify for full concessions. Airlines that do not should receive reduced concessions. It is as simple as that.
Such a system would not punish airlines. It would reward responsible behavior. Operators who work efficiently and keep fares affordable would benefit more. Those who choose to keep fares high would no longer enjoy unlimited public support.
This approach would also protect taxpayers. The people’s money should not be used to support excessive profits while citizens struggle to afford travel within their own country. Public resources should deliver public benefits.
If government believes that creating such a formula is too difficult, there is another option. Tax concessions to the aviation sector could be converted into equity. In simple terms, concessions could be turned into shares. When airlines declare profits, the public would benefit through dividends.
This would reflect the reality that taxpayers are already silent investors in the sector. They fund infrastructure. They forego tax revenue. It is only fair that they share in the returns.
The President’s concern should not stop at domestic travel. He should also address the high cost of international air travel to and from Guyana. Guyanese living abroad are paying as much as US$1,500 or more for basic economy tickets from New York and Toronto. These prices are excessive.
Travel between Guyana and North America is not a luxury for the diaspora. People travel for funerals, medical emergencies, family care, and national events. High fares place an unfair burden on Guyanese families and discourage investment and tourism. International carriers that serve Guyana operate under permits granted by the state. These permits are not an automatic right. They are privileges. In return, airlines should provide reasonable and competitive pricing.
At present, there is effectively no peak or off-peak season when it comes to international travel between Guyana and North America and the Caribbean. Traditionally, airfares rise during busy periods such as Christmas, summer, or school holidays, and fall during slower months. That pattern does not exist for Guyana. Whether it is winter or summer, peak season or supposed off-peak season, fares remain consistently high. Guyanese are paying premium prices year-round, even during periods when planes are not always full and demand should be lower. This suggests that current pricing is not driven by seasonal demand, but by market structure and limited competition, and it strengthens the case for government intervention to protect consumers.
The President should therefore meet with international and regional carriers. He should make it clear that Guyana expects fair fares. If airlines refuse to cooperate, government should explore alternatives. New carriers can be invited. Existing permits can be reviewed. No airline should assume it has a guaranteed market.
Other countries negotiate aggressively with airlines. Guyana should do the same. A growing oil economy should not mean that citizens pay some of the highest airfares in the region.
In the end, the principle is simple. Public support should bring public benefit. Tax concessions and infrastructure investments must serve the people, not just private companies. Linking concessions to reduced fares is fair policy. Demanding reasonable international airfares is sound leadership. Guyanese deserve nothing less.
(The views expressed in this article are those of the author and do not necessarily reflect the opinions of this newspaper.)
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