The Tribune

By NATARIO MCKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

A well-known Bahamian airline executive yesterday warned that fee increases being proposed by the Nassau Airport Development Company (NAD) would make domestic air travel “prohibitive”, describing such increases as an “obstacle” to Family Island development.

Sky Bahamas chief executive Captain Randy Butler said that domestic carriers were definitely “feeling the pinch” of fees levied by Lynden Pindling International Airport’s (LPIA) operator and taxes imposed by the government.

NAD is proposing that the landing fees, terminal fees, aircraft loading bridge fees and aircraft parking fees increase three per cent - or $0.13 cents - per passenger from February 15, 2015. NAD noted that other airports in the Caribbean may be increasing their fees in 2015 and 2016 as well, stating that the costs “are based on a Boeing 737-700 with a 75 per cent load factor (passenger count of 102) with a 90-minute turnaround time, including usage of a jet aircraft loading bridge”.

“Excluding government taxes LPIA’s costs are presently $51.21 per passenger, and with the recommended February 2015 a 3 per cent Aeronautical Fees increase of $0.13 per passenger, becomes $51.34 per passenger and is competitive. NAD rates are exactly where predicted when the project began and this is consistent with the projected government Project Definition Report approval. LPIA is brand new and has three sectors of service. These are dimensions that do not exist at peer comparison airports, but do exist at Miami, Orlando and Fort Lauderdale. LPIA plans only nominal Airport Fees increases (CPI type) on Aeronautical Rates going forward,” said NAD.

Mr Butler said: “NAD is a good operator. The airport is well done. The people at NAD are responsive but the challenge is I don’t think that there is a real demand for all of the facilities and given the size of the airport.  It’s a huge airport and you have to pay for it.

“It’s the same way in Marsh Harbour. Domestic carriers feel it  and the customers will feel it in the ticket prices That is also an obstacle in the development of the family islands. Tourism is noticing that it is more expensive to go from Nassau to the Family Islands than it is to go from here to where they came from. A lot of these islands do not have direct service. The government needs to take a look at that and see what it is they are going to do.”

Mr Butler added: “Once we pass this on NAD is going to make travel to the Family Islands prohibitive. The government needs to put a strategic plan for the aviation industry and they need to consult with all of the stakeholders. People are shying away from the destination because it is too expensive and we have to look at that in a  real way.”