The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

The Christie administration yesterday hailed as a “landmark accomplishment” its agreement with the US  Federal Aviation Administration (FAA), which will result in Bahamian aircraft operators being exempted from the payment of overflight fees for domestic flights.

Prime Minister Perry Christie said the deal, which could be the first step in the Bahamas regaining control of its own air space above 6,000 feet, would save the national flag carrier, Bahamasair, around $1 million over a three-year period.

Under international laws, countries require airlines and other aircraft to pay a fee for the right to fly over their airspace. The administration of those rights in the Bahamas has been performed by the FAA since 1952, meaning. Bahamasair and other Bahamian-owned carriers have had to pay the US for the privilege of flying over their own country.

Mr Christie said the FAA fee exemption for Bahamian carriers on domestic flights will take effect in the “very near future”, and translate into significant savings for operators.

He added that the Government-subsidised national flag carrier, Bahamasair, had paid overflight fees “in excess of $1 million” over the last three years.

Sky Bahamas chief executive, Captain Randy Butler, said Bahamian airlines have been paying $100,000-plus to the FAA in overflight fees per annum. “That’s anywhere from four to five persons’ salary,” he added.

    Upon assuming office in 2012, the Christie administration had pledged to address the management of the Bahamas Flight Information Region (FIR), which will permit access to overflight fees on the Bahamas’ “upper airspace”.

Mr Christie said yesterday: “Considerable progress is now being made on proposed new arrangements for the management of our airspace, including plans to approach the International Civil Aviation Organisation for formal recognition of an expanded Bahamian Flight Information Region (FIR), which would have economic benefits to the Bahamas and would be in the mutual interest of both countries with respect to aviation safety and security.

“It is expected that a final agreement will be soon reached to govern the terms and conditions of the FAA’s management of Bahamian airspace, initially for a period of 10 years. It is expected  that this arrangement will provide for the first time for the collection of overflight fees by the Bahamas from aircraft transiting Bahamian airspace.

“The FAA will be paid for providing air traffic management services during this period. The overflight fees will be set by the Bahamas government and collected from transiting aircraft in accordance with the economic guidelines issued by the International Civil Avaition Organisation (ICAO).”

This development, according to Mr Christie could unlock a “whole new vista of jobs for Bahamian professionals” within the aviation sector.

He said: “We see this as a landmark accomplishment on our part. We feel it will open up new areas of opportunity for our country, including revenue that has not been forecast. We feel this is a positive indicator of my government’s grasp of important developmental issues in my country that have hitherto been ignored. We feel very good about it.

Glenys Hanna Martin, minister of transport and aviation, said the proposed 10-year arrangement  with the FAA is necessary to allow the Bahamas to build the necessary capacity to manage its own airspace.

She added that with 28 airports across the country, the capital investment required for this nation to undertake such a feat is  “very significant”.  The Government has committed to overhauling all the Family Island airports, an initiative that will likely cost $180 million.