RECENTLY, Minister of Tourism, Industry and Commerce Mr. Manniram Prashad,responding to the Caribbean Airlines(CAL) fiasco, said the time has come for Guyana to seriously consider reinstituting a national flag carrier to facilitate more flights in and out of this country and provide a better quality of service to Guyanese travellers.
The minister is right, but may be a bit late in making this observation because Guyanese have been suffering since the days of its predecessor, BWIA. So what took place recently in New York is nothing new or strange. It is a typical example of “old wine in new barrel.”
And the minister has alluded to this as he declared: “The Caribbean Airlines issue is an ongoing one. Maybe the time has come when we need to get Guyana Airways back on track, because it seems as if Guyanese will be taken for a ride by Caribbean Airlines all the time.”
President Bharrat Jagdeo was also very forthright on the issue, acknowledging that getting a national airline is very important, as the country has experienced an “explosion” of people coming home and travelling to Guyana.
He also announced that Guyana is looking to buy aviation fuel from Venezuela, to allow the proposed national flag carrier airline to compete with others in the Caribbean and North America.
Nevertheless, it is encouraging and soothing to Guyanese travellers, whether local or those from the diaspora, to learn that serious consideration is being given to the re-establishment of a national flag carrier.
According to the minister, discussions are underway with private individuals who have expressed interest in investing in the venture.
He said: “Discussions are ongoing because the airline business is not any easy business. We have had discussions with Jet Blue and American Airlines and, after several meetings with Jet Blue officials, all the information requested was submitted and we are awaiting a decision.”
In addition, he revealed that several other airlines have also been engaged, including Suriname Airways and KLM (Royal Dutch Airlines).
It would be a great day for Guyana and all Guyanese should these engagements fructify and the effort being made to bring relief to travellers into and out of Guyana is widely appreciated.
However, it must be conceded that the task ahead is not an easy one, because the global airline industry is going through an extremely difficult period as a result of the world economic crisis and the high cost of operations due to spiralling fuel prices as a result of the instability and wars in the Middle East/North Africa.
On the issue of aviation fuel, price President Jagdeo indicated that sourcing aviation fuel from neighbouring Venezuela, as one of the initiatives that could help bring down its price.
Rising operational costs within the airline industry have resulted in several airline companies running at a loss, and these include the very big ones, and therefore ending in their closure or amalgamation with other companies in a bid to survive.
Giovanni Bisignani, IATA’s Director General and CEO at IATA’s Annual General Meeting and World Air Transport Summit in Kuala Lumpur, Malaysia, said:
“Numbers can tell powerful stories. US$10.4 billion (1)is the amount we lost last year. The ground shifted and our industry was shaken. Skyrocketing oil prices dominated the first half of 2008. Global recession was the story of the second half.
“2009 will also see massive shifts. We expect the industry fuel bill to fall by US$59 billion. But rising oil prices anticipating recovery are a great risk. Greedy speculation must not hold the global economy hostage. Failure to act by governments would be irresponsible. On top of this, an even bigger negative number is on the horizon: US$80 billion). That is the total revenue that will disappear with falling demand, collapsing yields, broken consumer confidence, and pandemic fears. The landscape is harsh. Airlines will lose US$9 billion this year.”
Indeed, it is tough going for the airline industry and establishing a national flag carrier in the current global state of affairs would not be the easiest of tasks, but with respect to Guyana it seems that we do not have an alternative. And perhaps the old adage of “where there is a will, there is a way” would be applicable here.