The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

COMMERCIAL airlines were “ecstatic” yesterday over the Government’s decision to eliminate the $75 processing fee and significantly reduce the Customs attendance fees, a senior executive adding that the Government ultimately stands to collect more from the $4 departure tax increase .

Alan Sweeting, chairman of the Airline Operators Committee at Lynden Pindling International Airport (LPIA), said Prime Minister’s Christie’s “significant retreat” was welcome news, as airlines had been pushing for the Government to roll back the fees introduced in the 2013-2014 Budget.

The new fees, which took effect last July 1 for aircraft serving the Bahamas, prompted a strong reaction from US airlines, which effectively threatened to reduce their service to the destination in response.

Mr Christie said yesterday that based on the provisions of an agreement between the Ministry of Tourism and the commercial airlines designed to sustain airlift to the Bahamas, the $75 processing fee paid for entry and exit will be eliminated.

The Customs attendance fees will be reduced from $50 to $200 per hour to a flat $2.50 fee per inward and outward declaration.

“To qualify for these adjustments, the commercial airlines will be required to meet certain minimum requirements in the form of a minimum of 300 international rotations - landings and takeoffs - per year,” said Mr Christie.

“They must also increase the number of seats coming into the market and bring all outstanding processing fees up to date. With these fee adjustments, the Government will also be increasing the air departure tax from $25 to $29, effective October 1, 2014.”

Mr Christie described this as a “significant retreat”.

In response, Mr Sweeting said: “This is something that we have been talking to the Government about for some time to have this issue settled. We are ecstatic that we have come to this point. We were talking with them about this since last July, and to finally have the Government be able to address it is wonderful.

“Overall, the Government will get more from the $4 than it was getting from the processing fees. I think that the Government will be in a win in terms of revenue intake.We would see a significant savings from this, and airlines would be more encouraged to increase airlift.”

Mr Sweeting added that most, if not all, commercial airlines would be able to meet the international rotations requirements.

He said the additional $4 departure tax should not discourage customers from traveling.