The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

A Bahamas Flying Ambassador is arguing that the cost of Family Island airport upgrades should be placed on the commercial airlines rather than private pilots who “haven’t asked for and don’t want” them.

Rick Gardner, director of CST Flight Services, which provides support services to the general aviation industry, told Tribune Business that the new and increased fees likely to be levied by private investors/operators to finance Family Island airport overhauls should be borne by the airlines that will be the main beneficiaries of such improvements.

His comments came as Dr Kenneth Romer, the Government’s aviation director, told Tribune Business that Bahamas Customs has agreed to “hold ongoing” talks with the private aviation industry over the fee increases it has imposed with effect from July 1, 2024.

Referring to the letter sent to Philip Davis KC by the Aircraft Owners and Pilots Association (AOPA), the world’s largest private pilot body which represents between 300,000 to 400,000 plane owners and aviators, Dr Romer told this newspaper via messaged reply: “We are aware of a letter by AOPA addressed to the Prime Minister and minister of finance regarding the imposition of fees.

“The Bahamas Customs Department has committed to holding ongoing dialogue with them with our support. As aviation and tourism professionals, we sincerely recognise the value of the thousands of aviation partners, including the AOPA. We will continue to collaborate with them to promote our country as the premier destination for general aviation travel.”

Mr Gardner, though, told Tribune Business that private pilots and their guests do not need brand-new terminals, or wider and longer runways, to be able to access The Bahamas and get where they want to go in the Family Islands. As soon as they cleared Customs and Immigration, he added, they were seeking to reach the beach or their chosen activity.

“The building for general aviation in New Bight is an old trailer, and I’ve never, ever heard of a single pilot complain about it,” he said. “They don’t need the duty-free. They don’t need all that stuff. They don’t need these longer runways. They don’t need the wider runways. 

“My feeling is all these increases, the cost should be borne 100 percent by the commercial airlines. Don’t charge us for what we’ve not asked for and don’t need. The people paying for it should be the airlines, but don’t make me pay for it.”

The $80m Bimini airport upgrades, for example, appear chiefly designed to attract more commercial airline service to the island through lengthened and wider runways, plus an improved terminal experience and amenities. Thus the main beneficiaries are likely to be the Hilton-branded Genting Resorts World development and the Rockwell Island project spearheaded by Rafael Reyes, Gerardo Capo’s son-in--law.

Michael Penman, another private pilot and frequent visitor to The Bahamas, told Tribune Business via e-mail: “I remember when we used to fly over to Marsh Harbour and have lunch at Mango’s, when you only needed a driver’s license and did not have to check back in the US. Those were easier days for sure.

“The reason for the airport disrepair is not because the pilots are not paying their fair share; it’s because funds are used elsewhere. General aviation pilots bring a ton of money into the country and I think you will see some of that dry up but, more importantly, and [this] won’t show in the statistics, is that pilots will choose to go elsewhere.

“Add privatisation (think Signature or Atlantic) and you will practically kill the four-person business. Those pilots are looking to use their planes and go somewhere. Already the eApis implemented by the US is too onerous and overbearing. I guarantee you are losing at least another 50,000-100,000 flights per year right now because of the fees, the customs burdens on the US side as well as now the burden on the Bahamian side.”

Mr Penman added: “I used to be a pilot that would come at least twice a month, but have not flown (have boated to) The Bahamas in over a year now. I’d say that our average two-night stay with the wife and I was about $2,000 when factoring in Customs, hotels, food and a golf cart. Spent many a good night on Spanish Wells, too.

“I think that the consensus is to charge the rich, some of whom can barely afford an air plane, but love to fly. Hopefully the local Bahamian families and businesses see this as a huge mistake and make a change....

“I won’t come any more simply because it’s too much of a hassle. I can fly to Puerto Rico, not do customs and have a blast, plus I can surf. Add all the destinations in Florida, the Caribbean and it gets pretty open where you can go. The commercial traveller and the cruise ships do not bring that much cash to the outer islands, it’s the boaters and the general aviation pilots. That’s who I see mainly in the restaurants and bars.” 

The private pilot backlash comes amid complaints that the sector was blindsided, and never consulted over, the extent and timing of the Customs fee increases which took effect when the new fiscal year began on July 1.

Mark Baker, AOPA’s president and chief executive, wrote in his letter to the Prime Minister: ““I write today to urge you to intervene and rescind the imposition of new and egregious fees being imposed by the Bahamian government on private pilots flying to and from The Bahamas.

“We believe recent actions by Bahamian authorities with respect to these fees will have a negative impact on a sector of the tourism industry that has contributed heavily to the economy of The Bahamas.

“We remain hopeful that the appreciation for the value of general aviation tourism is not in question. General aviation tourism doesn’t need massive airport improvements similar to those that the airlines request or require. While we understand some fees are necessary, we also believe private pilots shouldn’t have fees imposed on them that are twice as much as those imposed on commercial aircraft.” 

The Customs Management (Amendment) Regulations 2024 changed the aircraft inbound and outbound fee structure such that it appears a private plane with more than four seats now pays three times’ what a regularly scheduled commercial jet does.

Under the new fee structure, commercial jets have to pay a $50 “inbound” and $50 “outbound” fee for a total of $100. However, a private plane with four seats or less “including all seats in the cabin” is now faced with paying $75 each way for a total of $150.

That is slightly more than the $100 fee for a commercial jet, but private aircraft with more than four seats “including all seats in the cabin” now face having to pay $150 “inbound” and “outbound” fees to Customs for a total $300. So-called “recreational” flights will only pay $150 “inbound”, but cargo flights will see a $150 fee levied on both “inbound” and “outbound” trips involving The Bahamas.

For private planes and private aviation, the fee increases represent a three-fold and six-fold increase, respectively, on the previous Customs fee structure which was $50 “inbound” and zero “outbound”. Meanwhile, the Customs fee increases have coincided with the new and higher charges levied by Bimini’s new private airport operator, which also took effect on July 1.

These have imposed a range of landing and parking fees on private aviation operators, as well as commercial airlines, along with new passenger facility and processing fees. These are being viewed as setting a precedent, and a foretaste of further fees to come at other Family Island airports when the Government outsources their redevelopment to other private operators and investors.

Bimini Airport Development Partners (BADP), in an updated May 3, 2024, notice to commercial, charter and private aviation customers, served warning of its intent to impose a passenger facility fee on travellers from July 1, 2024, this year. These fees were set at $20 for domestic travellers, and doubled to $40 for international passengers.

Meanwhile, the passenger processing fee was pegged at $5 for domestic, and $10 for international, travellers with both categories also having to pay a $1 “passenger levy”. In total, these additional fees come to $26 for domestic passengers and $51 for their international counterparts, and are on top of the $29 per head departure tax.

The BADP fee schedule then reveals that the passenger facility fee is being increased to $25 for domestic travellers, and $45 for international passengers, with effect from January 1, 2025. And the passenger processing fee will rise to $6 for domestic, and $12 for international, travellers with effect from that same date. Thus persons leaving Bimini to travel outside The Bahamas will have to pay an extra $58.