Discounts on landing fees not unusual

-CJIA says AA adds 15,000 seats into Guyana, employs over 100 Guyanese

THE Cheddi Jagan International Airport (CJIA) has contended that discounts on landing fees offered to airlines is not unusual and is done as a measure to help offset the initial start-up expense of new air services into a destination.

The airport’s statement was in response to an article headlined ‘Govt grants American Airlines 90 per cent concession on landing fees’ in the Kaieteur News edition of March 3, 2019.

“A cursory check of the industry will reveal that this is a very common and well accepted practice adopted by airports worldwide. As a matter of fact, many airports go as far as providing ‘Revenue Guarantees’ to airlines so they can fly to their destination,” said CJIA.

The discount offered to new carriers are progressively reduced and are usually for the first year or two of operations. The airport, in a press statement, said similar concessions were also offered to other new entrants into the GEO market, including Dynamic Airways and COPA Airlines.

Since its commencement of flight operations in November 2018, American Airlines has added an additional 15,000 seats to the Guyana market and provided direct and indirect employment opportunities for over 100 Guyanese. The additional airlift has also added competition on the route and offers passengers an advantage of selecting their choice of carrier.

“Over the past few years, the Government of Guyana has worked assiduously to attract new carriers and will continue to do so, and ensure that air travel is accessible and affordable for Guyanese, visitors and businesses alike,” said CJIA.

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