… aviation operators defend Goldfields’ purchase of plane

SEVERAL personalities in the aviation sector have expressed mixed feelings on local content availability in light of Guyana Goldfields’ decision to purchase an aircraft to shuttle workers to its Aurora mine in Cuyuni, Region Seven.

Four local operators, TransGuyana Airways, Roraima Airways, Air Services Limited (ASL) and Wings Aviation, have benefitted from over $1B in local air transport services provided to the company since 2015.

Operations Manager of ASL, Zahir Yusuf, told Guyana Chronicle that the company has lost some service since the mining company bought its own plane, but said he could not fault them for making “economically sensible decisions”.
Yusuf said initially ASL operated two to three flights per day for the mining company, but now there is a sporadic involvement.
“I understand the justification for the decision (to purchase the aircraft) so to say, they must stay with us, I don’t think that is fair.”
The operations manager indicated that if there should be more for locals provided by foreign companies, there should be a clearly defined line on what foreign investors must do.

Another operator who provides service to Goldfields was not so keen on the company pulling its service.

Speaking to Guyana Chronicle on the condition of anonymity, the operator insisted that foreign companies must leave a legacy, noting that even when they stop operating in Guyana, the benefits of their operations here could be seen.
The operator said, too, that flights to the hinterland have slowed down, contending that the company should have maintained local connection as part of its local content contributions.
Instead, he noted, some 90 per cent of air transport cost will now be going back to the company, “depriving Guyanese companies and not leaving a legacy”.
On social media, the Goldfields conversation continued where regular contributors to the group ‘Guyanese pilots’ supported the decision of the foreign company.
“Any legitimate company, including the owner of Kaieteur News, the business persons in the Private Sector Commission and the Chambers of Commerce anywhere in the world, if they were faced with incredible transportation costs that impact their profitability and flexibility would have made that sound business decision and purchased their own transportation.”

Dominic Mendes commented that it would be imprudent for the company to continue with local operators while strangling itself financially.
“It’s always more economical to have and operate your own equipment! If you owned and managed your own company, you would be stupid not to do the same!” the former TransGuyana Captain wrote.

He described the idea of the mining company abandoning locals as a “total crock”.
He pointed to the efficiency of the plane purchased by the mining company in comparison to those operated in Guyana and the fact that the one plane purchased by the company is still inadequate for servicing the mine.

Goldfields had stated in a full page advertisement that the purchase of the plane was purely for economic reasons. The company said the plane was better equipped to transport its workers while local operators would still be used to move cargo.
Goldfields said it was leasing aircraft most weeks with over 20 flights paid for since the first gold was poured in 2015 to move their employees to the worksite.
“Those costs amounted to over G$1B.  It is unfair to hold this company to different business standards to what is practised in the global marketplace,” Goldfields said.