The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

A BAHAMIAN airline executive yesterday warned that increased fees levied against carriers at Lynden Pindling International Airport (LPIA) could ultimately impact the country’s tourism sector,adding that the Government must decide on a plan for the aviation sector going forward.

“I think it’s time the Government really takes a look at a strategic plan and how they want to develop this industry and develop the Family Islands,” Captain Randy Butler, Sky Bahamas’ chief executive, told Tribune Business.

“Today, people come to Nassau and then go to the Family Islands. They have to pay those taxes and fees when they leave and when they come.

“For example, the passenger facility fee is paid going going out of LPIA to the Family Islands, and from LPIA back to the US where they are going, so they get to pay that twice. A number of fees being put out there by Civil Aviation and LPIA, in my estimation, are duplication and sometimes triplications.”

Mr Butler’s comments followed NAD’s recent public notice that come October 1, 2013, there will be an international passenger facility charge increase of $4.50, plus a domestic passenger facility charge increase of $2.50.

“What has to happen is the Government has to decide on how this industry is going to move forward. If they built a big new airport they should have looked at what it’s going to cost to maintain that,” said Captain Butler.

He warned that heavy taxes could make the destination less attractive to carriers and impact the tourism sector. “We have to be careful that we don’t tax ourselves and become like other airports like Miami, where people won’t go,” Captain Butler said.

“Too many taxes and it could become an impediment for people to come through here. That impacts your tourism product. You can build more hotels, you want people to stay overnight, but air transport is going to be too expensive unless the Government continues to grant subsidies like the air credit and Companion Fly Free.”

Captain Butler said: “If you tax me I just pass it on to the passengers because I can’t absorb it, but the white elephant in the room is Bahamasair, which is not increasing their ticket prices because they are being subsidised by the Government.

“If Bahamasair is going to to pass the $2.50 on and we are going to pass it on, it makes the field level. We can’t absorb it because we stand on our reputation. People don’t want to get on an airplane that is not being maintained and pilots are not being well paid.”