MINISTER within the Ministry of Public Infrastructure, Annette Ferguson has announced government’s intention to have a representative sit on the Board of the Ogle Airport Incorporated (OAI).In recent days, OAI has been accused of creating an environment that is oppressive and anti-competitive, and a group of dissatisfied operators have moved to form the National Air Transportation Association (NATA).

During a recent press conference, Minister Ferguson explained that OAI and the then Public Works Ministry would have signed a lease agreement that allows the Minister of Public Infrastructure to appoint a representative to sit on the Board.

LEVEL PLAYING FIELD

Although 60 per cent of OAI is owned by the Correia Group, the Board Chairman Michael Correia Jnr. is convinced that there is a level playing field at the Ogle International Airport.

Last week, Annette Arjoon-Martins and Captain Gerry Gouveia, President and Vice-President of the newly-formed National Air Transport Association (NATA) slammed the OAI over the alleged dictatorial attitude being displayed.

According to NATA, the Ogle International Airport is being “controlled” by the Correia Group through the Board, resulting in the environment at the airport being anti-competitive and oppressive.

But on Friday, Correia lashed out at the association, saying it is “wholly irresponsible to suggest that any single airline exercises a monopoly or control in this environment.”
But Correia in rebutting the claims said the small operators that have thrown their support behind Arjoon-Martins and Gouveia are clearly misled.

CASH INJECTION
He said while the Correia Group of companies is being criticised over the quantity of shares it owns, it was that same group that financed the airport when others backed out at a critical time.

“Early in the life of OAI, when there was need for critical cash injection to satisfy the mandatory safety and development obligations of the Lease Agreement, the Correia Group was left alone to meet the demand, or the OAI face the collapse of the Airport Development Project.

All the shareholders at the time had an opportunity to contribute equally. They chose not to. There was no objection then on the part of any of the shareholders to the Correia Group meeting the financial demand for the survival of the airport,” he pointed out.
NO ANTI-COMPETITIVE BEHAVIOUR

He said though the failure of the other investors has resulted in one group owning the majority of the shares, the structure of the conditional Operators Agreement and the strict regulation of the Airport Operations Manual and Procedure by the Guyana Civil Aviation Authority (GCCIA) will not permit anti-competitive and oppressive behaviour.

Quizzed on the composition of the board, the Board Chairman said that while 60 per cent of the OAI is owned by the Correia Group, it only has two representatives on the seven-member board.

The members include Michael Correia Jnr., Niki Correia, Malcolm Chan-A-Sue, Marcel Gaskin, Tony Mekdeci, Ronald Reece and Mazahar Ally. However, Guyana Chronicle was reliably informed that only two of the board members are independent aircraft operators.
In his quest to prove its case of equality and transparency, Correia told reporters that OAI had frequently called on the previous People’s Progressive Party/Civic (PPP/C) Government to implement the Airport Review Panel prescribed by the Lease Agreement which is intended to provide an extra layer of oversight on the operations and obligations of the airport and the government.

“We believe that this will help to improve our governance structure and prevent any possibility of anti-competitive or oppressive behaviour or any allegations that the airport is operating improperly. We have also asked this government to appoint this Airport Review Panel.”

Meanwhile, in explaining the controversy, Captain Gouveia told the Guyana Chronicle that there is no doubt that the airport has evolved since its conception as a Sugar Estate Airfield with 21 operators utilising the Ogle International Airport, four foreign operators and 17 domestic operators including Trans Guyana Airways, Air Services Limited, Roraima Airways Limited, Oxford Aviation, Hinterland Aviation, Domestic Aviation, Phoenix Aviation, Hopkinson Aviation, Wings Aviation and JAGS Aviation, among others.
NEPOTISM AND CRONYISM

But he also maintained that the environment at the airport has become unfavorable with the OAI Board loaded with family and friends of the Correia. “A close examination of each board member of OAI tells a story of nepotism and cronyism,” Gouveia said.
PRESIDENCY

In turning back the pages of history, he observed that the Aircraft Owners Association had an agreement that the presidency would be rotated among the members to ensure equity, good governance and coordination for development of the private aviation sector.

However, it was pointed out that Correia has held the presidency for 19 years – a situation which has reportedly created serious issues on the governance and control of the airport.

“Other operators feel that they are operating in an anti-competitive environment,” Gouveia maintained, contending further that this “exercise of monopoly control and anti-competitive strategies” are attempts to take over the Aviation Services at the Ogle Airport by the Correia Group.

By Svetlana Marshall