Dear Editor,
BY THEIR very nature, and in essence, airports are regulatory agencies; and for this very reason, airports are managed and controlled by Governments or independent airport management companies.Airports should never be owned/managed or controlled by one airline, because of the obvious conflicts and, more particularly, the untenable situation of: (i) having one airline regulating other airlines; (ii) one airline controlling the distribution of lands; (iii) one airline setting and enforcing the rules; (iv) one airline developing draconian contracts for its competitors; and (v) one airline controlling distribution of contracts.
It simply is totally unacceptable to have a situation where one competitor regulates his competitors.
The existing anti-competitive environment at Ogle International Airport is a result of Mr Michael Correia serving as Chairman of the Ogle Airport Inc. (OAI) whilst also being head of the Correia Group of Companies, which has two subsidiaries that provide aviation services which compete with the other nine companies at the OIA.
This is further compounded by the principal directors of OAI, five of whom are either family or associates of Mr Correia, playing key roles in the management and regulation of the airport.
The position of OAI Chairman should be held by someone who is not an aircraft operator; and as such, a competitor should have no role in the management or regulation of the airport.
The main concern of the National Air Transport Association (NATA) is with the present governance and management structure of the Ogle Airport. The Guyana Civil Aviation Authority is tasked with approval of “post holders” in the airport’s management, and if it carries out this function impartially, can bring about some redress to the present situation. Since an airport being regulated by an operator is unheard of, there is strong need for several interventions by the Minister of Infrastructure, the Hon David Patterson, with whom NATA has met on November 18, 2015 when its members had brought to his attention their collective experience of abuse, anti-competitive tactics, and dominance by OAI and the Correia Group of Companies.
We had also requested that Government assess OAI‘s conformity to the reporting and other requirements clearly stated in the 25-year lease between the two parties, which we advised would reveal glaring non-conformity by OAI, and which had in essence contributed to the sad state of affairs at Ogle International Airport.
We are appreciative that Minister Patterson, as promised at that meeting, has taken the necessary steps to have this done. As the master lease also caters for establishment of an Airport Review Panel to ensure Government oversight of the lease between Government and Ogle Airport Inc., this is also a great priority for NATA, and will play an even greater role in the way forward to ensure compliance by OAI.
The terms of reference for this Airport Review Panel have already been developed, and once implemented, will offer even much needed redress to the abuse and dominance at this public utility.
The unforeseen governance and other challenges arising at this public utility by its being regulated by the operator (OAI) whose board members have vested commercial interests can also be resolved by its being placed under the remit of a national airport authority, under whose remit both of our international airports will reside.
NATA is appreciative of Minister Patterson giving credit to NATA for its advocacy that enabled the parking area being developed by OAI for the small aircraft operators. We eagerly look forward to the completion of the lease review and remedial action, the establishment of the much-needed Airport Review Panel, and the long overdue National Airport Authority.
Respectfully,
ANNETTE ARJOON-MARTINS
President, NATA