The Tribune

By FAY SIMMONS

Tribune Business Reporter

jsimmons@tribunemedia.net

A Cabinet minister has defended the increased fees imposed on private aviation visitors as essential to financing much-needed capital improvements at The Bahamas’ airports.

Michael Halkitis, minister of economic affairs, appeared to dismiss the travel advisory unveiled against The Bahamas over the fees by the world’s largest private pilot body as he branded them a “very small focus group”.

Speaking at the Office of the Prime Minister’s weekly press briefing, Mr Halkitis maintained that the Davis administration is investing “hundreds of millions” of taxpayer dollars to improve Family Island airport infrastructure as he downplayed the group’s influence. “I didn’t see that, and I doubt it’s sort of an Aircraft Owners Association,” said Mr Halkitis.

“I think it might be a very small focus group of particular individuals who have a particular issue, but I don’t think it’s called the Aircraft Owners and Pilots Association. That would involve a very broad spectrum of owners. I think it’s a very small, narrow group.” Mr Halkitis seemed not to have read, or been briefed on, an advisory from a group representing 300,000 plane owners and pilots.

“But I’ll say this,” he added. “Having said that, the Government of ours is investing hundreds of millions of dollars. We’ve done it over the years, hundreds of millions of dollars, in improving airport infrastructure throughout our Family Islands; for safety to improve airlift, to promote those economies in those islands. Hundreds of millions of dollars.”

Mr Halkitis added that Family Island airports have to be upgraded to maintain Federal Aviation Administration (FAA) safety standards, and private pilots should understand that fees have to be increased to fund the renovations.

“As you know, with our international airports, we have to maintain certain levels of security so that we can pass the Federal Aviation Administration tests and standards,” said Mr Halkitis. “We have to meet those and so we believe it’s not unreasonable to say to individuals who own private aircraft, or own their own planes, that they should when the Government of Bahamas seeks to amend fees that have been in existence, and some have gone unchanged, in some cases, 30, 40, 50 years, that we seek to amend those fees for private people who own their own private aircraft, who fly the private aircraft into these airports that we’re investing in.”

The world’s largest private pilots group has issued a “travel advisory” alert on The Bahamas over “the substantial and egregious” fee increases imposed on the sector in the 2024-2025 Budget.

The Aircraft Owners and Pilots Association (AOPA), which represents between 300,000 to 400,000 private plane owners and pilots, said it “feels a responsibility” to warn an industry that generates one out of every six stopover tourists to The Bahamas about “the significant fees they will pay” upon landing in this nation.

And the Association implied it had been forced to adopt this stance because of “little to no response from the Bahamian government”, as well as Prime Minister Philip Davis KC, to its pleas to adjust hikes that represent a three-fold and six-fold increase, respectively, on the previous Customs fee structure for private aviation which was $50 “inbound” and zero “outbound”

Mr Halkitis, however, maintained that the increased fees are “reasonable” but said the concerns of a group that contributes to the economy are worth consideration. “You, the Bahamian taxpayer, are investing hundreds of millions of dollars to upgrade,” he said. “We don’t think it’s unreasonable for them to pay a reasonable fee to use it.

“I personally, of course, when people are visiting our country and they’re contributing in some way, they have a concern, we listen. We don’t cut them off, we listen. But we believe that our actions in terms of those adjustments that we need for private aircraft, people who own their own planes and fly them into our country, they’re reasonable.”

The fee increases, unveiled as part of the Customs Management (Amendment) Regulations 2024, represent a three-fold and six-fold increase, respectively, on the previous Customs fee structure for private aviation which was $50 “inbound” and zero “outbound”.

Now, with the changes, commercial jets will 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 it is unclear what this definition means and how it will be applied.