FOLLOWING the ongoing fuel controversy that has engulfed Air Services Limited (ASL) at the Ogle Aerodrome, escalating into the forced entry of an ASL fuel tanker past a locked steel gate and into ASL’s compound at Ogle Aerodrome last Thursday, the Management if ASL is calling for systems to be urgently put in place to bring an end to the ongoing dispute. Eminently concerned over the recent developments, management of ASL yesterday hosted a media briefing to update the media on the issue over which the two entities have been recently embroiled, and has put forward proposals for an amicable way forward.

In a statement to the media, read by Ms. Annette Arjoon-Martins, ASL Flight Operations Superintendent, ASL is calling for, among other things:

* A Commission of Enquiry into the present operations at Ogle Aerodrome, suggesting that changes be made to OAI, as it is presently constituted, so as to ensure there is equitable representation of the legitimate aviation companies, in the allocation of land, issuing of fuel permits and other relevant aviation matters.
* It should be made mandatory that the Government of Guyana, through its Minister of Transport and the Director of Civil Aviation Authority, which have regulatory jurisdiction over the aviation sector, be represented on the OAI board. This is so, particularly since, were government’s financial contribution to OAI considered, it would make them the largest contributor, and entitle the government to equity, ASL said.
* The Chair of the Private Sector Commission must also be a member of the board, as it is the fittest agency for ensuring compliance with its commitment to the Competition and Fair Trading Act of 2006.

Meanwhile, ASL said it has commenced legal proceedings to address what it deems the present ‘unfair situation’ under the Competition and Fair Trading Act, considering that course of action to be most fitting.

Arjoon said that there have been many confrontations between the two entities, including over ASL’s application for land to facilitate its expansion, contending that one business, faced with competition from ASL has been  using illegal tactics to impede ASL’s growth, and is even resorting to ‘mud slinging and innuendo’ to ‘blacken’ ASL’s reputation.
Seeking to shed light on the matter, ASL said the latest problem revolves around ASL’s right to purchase its own certified fuel independently, which enables it to control its own fuel.

Arjoon outlined that for several years ASL has been purchasing all its fuel from Caribbean Aviation Management Services Ltd (CAMSL) which is owned by the Correia Group of Companies, and is a sister company to Trans Guyana Airways, which is ASL’s competitor.
However, with the increase in the price of fuel, ASL’s fuel bills soon assumed astronomical proportions.  For example, its July 2011 bill alone, for fuel purchased from CAMSL was $82,825,311.77.  As a result, ASL requested CAMSL to sell their fuel to them (ASL) at more realistic prices, but they refused to fix their prices, in keeping with existing lower prices nationally, Arjoone said.  She quoted the price charged by RUBIS Timehri, for the same jet fuel, for example, as being $323 less per gallon.

Contending that nothing prevents a company from handling its own fuel supply, she said ASL decided to handle its own fuel import on a trial basis, and found that they were saving $400 per gallon, as of yesterday, compared to purchases made from CAMSL.

ASL assured that this arrangement was undertaken in strict conformity to International Safety Organisation’s specifications. All insurance requirements have also been met. She also assured that the fuel is bought ONLY for refueling ASL’s own aircraft and NOT for resale.
ASL recalled that the first two deliveries were allowed into the compound hassle-free, but on the third trip, although the tanker was allowed through the aerodrome gate, Correia Security, CANU staff and Guyana Energy Authority (GEA) staff intervened. They questioned the ASL staff, tested the fuel which was found to be in full compliance, and the tanker was allowed to proceed to the ASL premises.
ASL was peeved, and contended that, while GEA and CANU have the legal authority to investigate persons suspected of committing offences anywhere in Guyana, they should guard against acting on malicious and mischievous information supplied to them by persons who have an agenda.

It was the fourth trip (last Thursday) that escalated into heated controversy. On that trip, both the ASL tanker and truck were refused entry to the aerodrome by a padlocked gate manned by Correia’s security.  ASL staff and consignment were both denied access to ASL’s own business premises beyond the gate.  Even though a senior management representative of ASL arrived on the scene, he too was denied permission to drive his company’s tanker, through his company’s premises.  He was forced to drive through the gate to get to his place of business.  ASDL denied claims by OAI that they had written ASL on this matter.

Following this development, ASL was advised that CAMSL has issued instructions that no fuel should be sold to ASL by that body, even though ASL is its largest customer at Ogle.  This matter was only resolved when ASDL contacted RUBIS Barbados.

Adamant, Arjoon-Martins stated:  “It should be appropriately noted that the OAI board, which is dominated by one group of companies owned by one family, ultimately decides who is allowed to sell fuel at Ogle.

She said the CAMSL which is owned by the Correia family, has been the only company authorized by the OAI to sell aviation fuel at Ogle.
“There are no other companies selling fuel at Ogle, so there is a monopolistic situation at the aerodrome.”  Noting that this situation needs to be addressed, she opined that the cease order from CAMSL management on Friday, when the fuel taps were shut off to ASL, was a dangerous precedent and should not be allowed to happen again, as it could cripple an aircraft’s operation.
ASL argued that is has demonstrated its commitment to affordable transportation which is also a policy of the Government of Guyana. “ASL has already proved that this is possible, when it entered the North West (Region One) markets which were previously served by one single company, and has since brought down the air fares by 35%,” Arjoon said.  Airfares to Lethem were also significantly reduced when ASL entered that market.

Ironically, and what perhaps heightened the problem, was that when ASL was approached by other operators to set astronomical air fares and charter prices which would have made it almost outside of the reach of the poor people using the service, especially in the remote Amerindian areas, ASL stoutly refused to do so, noting the implications for the poor people.

ASL reiterates that it remains committed to affordable transportation, adding that by controlling its own fuel, which is resulting in saving $400 per gallon, this can be maintained.

For more than 20 years, ASL has transported fuel to Mahdia operations where it now moves over 250,000 lbs of cargo per month for the gold mining industry, and for the governmental agencies of Education and Health.  ASL has recently started transporting fuel to Lethem to service that location as well.

Started over 50 years ago by aviation pioneer Yacoob Ally (the first President of the Air craft Owners Association of Guyana), ASl has grown  over the past ten years under his son, Captain Mazahar Ally, an experienced pilot.  Captain Mazar Ally flies all six  types of aircraft in his fleet of 19, and commands 20 pilots and a staff of over 150.