Discount on landing fees to airlines not unusual

Dear Editor,

Reference is made to the article headlined ‘Govt grants American Airlines 90% concession on landing fees’ in the Kaieteur News edition of 3rd March 2019.

The discount on landing fees offered to airlines is not unusual and is done as a measure to help offset the initial startup expense for new air services into a destination. 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.

The discounts offered to new carriers are progressively reduced and are usually for the first year or two of operations. Similar concessions were also offered to other new entrants into the Guyana 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.

Yours faithfully, Krest Cummings Public Relations Officer Ministry of Public Infrastructure