…to help recoup expenses for capital works

WHILE noting that no airline objected to the increase in fees when it was first announced in January this year, the Cheddi Jagan International Airport Corporation (CJIAC) says that the move to up the fees recently implemented at Timehri is tied to recouping expenditure associated with capital works undertaken on the airport upgrade.

The corporation in a statement released on Saturday also noted that only regional carrier, Caribbean Airlines (CAL), is collecting the fees over the counter. The airport also called on the International Air Transport Association (IATA) to assist in the implementation process, as was the case when a similar increase was made back in 2017.

Airlines notified in January 2019
In a statement issued through the Ministry of Public Infrastructure on Saturday, the CJIAC noted that on January 25, 2019, the corporation wrote the airlines in keeping with provisions of the terms and conditions of the Air Carrier Agreements between the Airport and the airlines, informing them of proposed fee increases, effective April 1, 2019.
The corporation said that it also provided explanations for the fee increases. “CJIAC had budgeted $2Bln in capital works for 2019/2020 to improve the services offered to the passengers and its airport stakeholders. The larger terminal with passenger boarding bridges have seen a significant increase in operational costs, inclusive of power consumption,” the airport said.

It said that the January notification satisfied the agreed terms and conditions set out in the respective Air Carrier Agreements; and it was noted that no objection was raised by any airline.

After issuing the letter of January 25, the airport said that Annaleen Lord of IATA wrote the airport in a letter dated January 29, 2019. She represented that IATA members had complained to them regarding the fees increase and requested that CJIAC share information contained in a presentation it made to the board or line ministry for the increase of fees, so that IATA could better understand the reason.

Thereafter, the airport explained, there were regular exchanges of email correspondence on the 1st, 3rd, 4th, 7th, 8th, 12th and 20th February, 2019; CJIAC and IATA representatives also met on February 13, 2019, in Canada.

As it explained the timeline of events, the airport said that on February 20, 2019, IATA repeated its request that CJIAC shares the presentation it made to the board or line ministry for the increase of fees, so that they could better understand the reason and recommended that the effective date of the fee increase be postponed to allow a selling date at least three months prior to travel dates.

“CJIAC hastens to point out that no ICAO policy document can override the national laws governing neither CJIAC, nor the express provisions of the Air Carrier Agreements between the Airport Corporation and respective airlines,” the airport stated.

It said too that the Air Carrier Agreements expressly provide for the airport to impose fees and for the airline to pay, on demand, or as the same otherwise fall due all applicable fees specified from time to time by the airport. “In the case of Caribbean Airlines, the airport is required by the agreement to give them two months notice of any new fee or fee increase,” the airport explained.

As regards its January notice of the increase in fees, the airport said that Caribbean Airlines replied more than a month later, by letter dated February, 21st 2019, a soft copy of which was received by CJIAC on March 1, 2019, followed by the hard copy delivered on March 4, 2019.

In that letter, the airport stated that Caribbean Airlines made a series of demands of the corporation. These included a demand for a Caribbean Duty Free Lounge, a Club Caribbean Lounge and designated customer service centres, where refreshments can be offered during delayed flights, or early-morning or late-night services.

It was noted that CAL requested that the fee implementation be delayed to July 1, 2019, a date more than five months after the January notification was made.

Not first time fees increased

In its statement, the airport said that it is not the first time that there have been increases in airport fees and charges. It said that on the last occasion in 2017, IATA was able to implement the new fees in as little as six-eight weeks.

Notably, the airport stated that there was no demand for it to provide its internal documents.

The letters and correspondence informing the airlines were sufficient for IATA to act on in the case of airport fees, whilst a copy of the legislation was requested in respect of the increased government taxes.

It was noted that on that occasion too, there was a transition period during which passengers were required to pay fees and taxes at the airport, pending IATA completing the requisite process.

“The airport does not know what agenda IATA is adopting, but it is inconsistent with the laws of Guyana, the Air Carrier Agreements and ICAO recommendations in cases where there are valid Air Carrier Agreements. It appears that IATA intends to interfere with the contractual relations between CJIAC and its customer airlines, including those which are not IATA members,” the CJIA said.

The CJIAC said that it is firmly of the view that, had IATA acted with the alacrity and competence it usually displays, the fee codes could have been fully implemented by April 1, 2019. The airport’s past experiences with IATA corroborate this belief.

IATA overreaching its authority
The CJIAC said that for the international body to request that it justify the increase is tantamount to overreaching its authority.

The CJIAC pointed out that the decisions of the corporation are guided by the Public Corporations Act, the CJIAC Order, relevant ICAO recommendations, and the Air Carrier Agreements between the airport and the airlines.

“It is clear from the position taken by IATA that they are unaware of laws and agreements by which the airport is bound,” the CJIAC said.

The CJIAC said it remains committed to working with its stakeholders to provide a seamless and gratifying experience for the travelling public and hopes that IATA will also assist in this regard.