The Tribune

By NEIL HARTNELL

TRIBUNE Business Editor

nhartnell@tribunemedia.net

AVIATION providers yesterday warned fees and taxes are “getting out of hand” after the private operator for three key Family Island airports unveiled new and increased levies - including up to $66 directly on international passengers - to take effect from New Year’s Day 2027.

Bahamian commercial and private aviation operators signalled they will have little choice but to pass the hikes on to tourists and local travellers alike through higher ticket prices after the Island Airport Development Partners consortium released the fees it proposes to start charging at North Eleuthera, Governor’s Harbour and Georgetown (Exuma) airports in less than four months’ time.

They cited, in particular, the proposed separate passenger facility and processing fees of $51 and $15, respectively, for international travellers using each of these three airports - totalling a combined $66 - as “the ones that get you”. The same fees paid by domestic travellers are pegged at $25.50 and $7.50 for a total $33, and these charges will be in addition to the $29 per head departure tax, $7 security fee and $1 passenger levy that are paid separately paid to the Government.

This means Bahamians living on Eleuthera and Exuma will now, in total, have to directly pay a combined $70 per head in fees to the private airport operator and the Government for the privilege of domestic travel by air. And, based on the proposed fee schedule, a copy of which has been seen by Tribune Business, international travellers face the prospect of paying a total of $103 for enplanement.

“The passenger fees are the ones that get you,” one Bahamian aviation source, speaking on condition of anonymity, said. “With the passenger enplanment and facility fees, that could break the camel’s back.

“That is where these fees become super-onerous, and that’s where it’s going to start to hurt people. It all really starts to add up on a per passenger basis. Both of these will be new charges that will apply to any passenger leaving these airports, even on private and charter planes. They will get this as well.

“All these fees are fees you would incur if you go to the terminal facility. As far as the travelling public is concerned, and will be charged, air plane tickets to Eleuthera will go up by all these fees; enplanement and all that stuff.”

The proposed passenger-related fees would apply to all aircraft - commercial, charter and general aviation and private operators. For a charter carrying nine persons, the source said the passenger facility and processing fees would total an additional $594 for an international flight and $297 for a domestic one.

Besides the new direct passenger taxes, the Island Airport Development Partners fee schedule also introduces aircraft parking fees for commercial flights as well as revised landing fees and terminal fees for the airlines plus charter and general aviation operators. A portion of these charges, too, will likely be passed on to travelling passengers by aviation operators in some form via higher ticket prices.

The new and increased fees are designed to repay Island Airport Development Partners’ combined $132m outlay in improving the North Eleuthera, Governor’s Harbour and Georgetown airports while also enabling the consortium to obtain its targeted investment returns. The principal that the customer/user pays to finance airport upgrades is well established, with Lynden Pindling International Airport (LPIA) in Nassau a prime example.

Plenary Americas, which describes itself as the developer and an “equity investor” in the Island Airport Development Partners (IADP) consortium, did not respond to Tribune Business requests for comment before press time last night. Its partners in a group which previously undertook Bimini airport’s $80m overhaul are Phoenix Infrastructure, a US infrastructure advisory and investment firm with offices in Washington D.C and New York, and Avports, an airport and fixed-base FBO operator.

However, in describing the Bahamian airport projects, Plenary Americas writes on its website: “The Island Airports concession involves the provision of full-service airport operations for the Exuma (Georgetown) International Airport, North Eleuthera International Airport and the Governor’s Harbour Airport, including increased route development.

“As part of this concession, major capital improvements are being undertaken, including new terminal buildings and crash fire rescue facilities at each of Exuma and North Eleuthera, along with targeted airside infrastructure improvements at all three airports.

“The new terminal buildings are designed to accommodate future increases in passenger volumes, providing modern check-in capabilities in an enlarged ticketing hall, multiple security screening lanes, a world class departures lounge with multiple concession and retail options staffed by local chefs and artisans, along with expanded and modernised Immigration and Customs processing areas.”

Touting the economic impact from upgrading the highest-traffic Family Island airports outside Abaco, Plenary Americas added: “The developments are expected to support increased tourism to the islands of Exuma and Eleuthera, and will provide new retail opportunities for local residents.

“IADP and its partners are committed to using a workforce comprised of at least 80 percent Bahamian workers to carry out all phases of the project.” Tribune Business research shows the new fee structure and schedule replicates what the Island Airport Development Partners group has already implemented in Bimini, although the passenger facility and processing fees for the three airports - along with some of the other charges - are higher than what was initially proposed there.

Dr Kenneth Romer, the Bahamas’ director of aviation, in a messaged response to Tribune Business inquiries last night said the Government was conscious of Bahamian aviation industry concerns over the proposed fees and seeking to strike the correct balance between travel “affordability” and making the three airports commercially viable for the long-term.

“The Government is aware of the concerns raised regarding the proposed fees at Governor’s Harbour, North Eleuthera and Exuma. Those concerns are currently being reviewed and addressed directly with IADP and industry stakeholders,” Dr Romer said.

“The Government’s position has not changed. Airport development must remain commercially sustainable while preserving affordability for Bahamian travellers, private aviation operators, commercial carriers and visitors. Any proposed fee structure must be reasonable, transparent and consistent with the country’s wider airlift and tourism objectives.

“Regional and international comparisons form part of the Government’s assessment of airport charges and their possible effect on airlift, visitor demand and the competitiveness of each destination. Discussions with IADP are continuing, and the Government will provide further information once that review has been completed.”

Dr Romer reiterated that the Eleuthera and Exuma airport upgrades are part of a wider strategy to improve The Bahamas’ aviation infrastructure and, in so doing, boost Family Island airlift and tourism such that it increases economic activity and job creation.

“The Government of The Bahamas is undertaking the largest aerodrome infrastructural development programme in the country’s history, covering more than 19 airports across the archipelago,” the aviation director said.

“The programme is intended to improve airside and airport terminals infrastructure, increase direct international airlift, support local ownership and employment, and deliver safer, more resilient facilities that meet international standards.

“Through its multi-agency project oversight team, the Government meets regularly with airport developers, including Island Airport Development Partners (IADP). These meetings scrutinise project delivery execution, proposed fees and charges, participation by Bahamian workers and businesses, passenger affordability and the competitiveness of The Bahamas as an aviation and tourism destination.”

Alan Burrows, principal at Tropix Air and a 36-year aviation industry veteran, said landing fees at North Eleuthera for his aircraft are set to rise from the present $11 to around $30 under the Island Airport Development Partners proposal.

“They sent us a list of charges. It’s not a fixed base operator (FBO), and their charges are higher than an FBO. Why would you put that in place at a government-owned facility?” he challenged. “For the travelling public it’s going to go up about at least $40 per head to clear out of those airports. That’s just ridiculous.

“The operators cannot pay it. The passengers will have to pay it on top of paying their seat price and charter to get there. Everything is going up. It’s getting out of hand.”

Dr Anthony Hamilton, president of the Bahamas Association of Air Transport Operators, and administrative chief at Southern Air Charter, told Tribune Business that the proposed new and increased fees will further eat into already “slim margins” in the local aviation industry as he bemoaned the lack of consultation.

“Any fees right now is something of concern for all the operators; there’s no question about that,” he said. “We have been echoing this for some time that we have a fee challenge. The industry has a fee challenge, and whenever fees pop up it causes some concern. It’s a matter of how to mitigate the challenge of these fees, and it means it’s passed on to the customer in the first instance.”

Questioning “what kind of return on investment” the aviation industry has received from previous fees paid to the Government, Dr Hamilton again argued for “inclusion and consultation” with all sector stakeholders on changes such as those proposed by Island Airport Development Partners to prevent “hit and miss situations” that cause “surprises” and undermine carrier planning.

Revealing that he was unaware of the proposed increases until contacted by this newspaper, he said: “The revenue margins are slim, so we have to be very keen on how we manage the industry. This could be very upsetting.

“The first order of business is to pass the fees on to survive. If carriers are already challenged, that challenge becomes greater with new fees and you have to navigate through these fees. These are just three destinations. What happens to the others? We need a proper plan, and then we will get some of these things resolved.”

Private aviation reaction was also negative. Rick Gardner, a Bahamas flying ambassador and director of CST Flight Services, which provides flight co-ordination and trip support services to the private aviation industry, said the proposed Eleuthera and Exuma airport fees - when added to recent Customs and other increases -threaten to further undermine this nation’s competitiveness as a destination.

“All I can tell you is it’s going to go over very poorly,” he told Tribune Business. “A gentleman called me earlier to vent. He’s been a customer for 12 years and he was venting about navigation fees and airport fees going up in The Bahamas. This is a guy that oversees corporate jets for a number of wealthy people, and the whole concept of it has him livid.

“At what point do people start saying enough is enough, I can’t tell you, but it’s beginning to leave a bad taste in people’s mouths. I’ve had a couple of people tell me they plan to fly on to the Dominican Republic and bypass The Bahamas. The fuel cost is more expensive, but they say it’s so much cheaper there; the destination is so much cheaper. People are being nudged.”

Pointing out that Bahamian airlines, such as Western Air and Bahamasair, will also face the same higher airport charges, Mr Gardner added: “They will have to roll those fees into their fees so the average Bahamian flying from Nassau to North Eleuthera and Governor’s Harbour, or from North Eleuthera to Nassau, will have to pay more. It’s what happened in Bimini. The cost of flying into the island went up because the fees went up.”

Branding the parking fees, including the $220 overnight levy, as “ridiculous”, Mr Gardner said of the likely impact if the fees are implemented as-is: “You don’t have to be a rocket scientist to know what this is going to do. The question is how much is this going to do? It’s not going to make The Bahamas more attractive. It’ll make people look more to the Dominican Republic and Turks & Caicos. It’s the principle of the thing.

“You are just pushing and raising the bar, and fewer people want to go over the bar or will pick a different bar. This isn’t going to help anything. What’s going to happen as this thing keeps going, and more airports fall under this plan, that perception is going to grow and people flying to The Bahamas may think twice. They may go fewer times and stay for shorter periods with these passenger levies and parking fees. All these levies, they are big numbers.”