Latest update April 25th, 2024 12:59 AM
Oct 10, 2013 News
– balking at Commercial Fuel Handling Agent conditions
The fuel row at the Ogle International Airport is intensifying even as the Board of Directors prepares to meet to iron out the issues.
On the one hand is the Air Services Limited who is claiming that its efforts to operate its own fuel farm at the airport are being frustrated. On the other stands the Ogle Airport Inc which is accusing ASL of grossly misrepresenting to the public the situation at Ogle Airport with regard to aviation fuel storage, handling and distribution at the airport.
The current fiasco has its genesis in ASL announcing last week that it faced a possible shut down of its operations following the suspension of its fuel supply by RUBIS over suspected comingling with other supplies.
This led to the Ogle Airport Inc responding by claiming that ASL was making a mountain out of a mole hill.
ASL has had a long running dispute with the Ogle Airport Inc (OAI), with claims that the Airport Board is favouring a monopoly by Caribbean Aviation and Maintenance Services (CAMS) to supply fuel at the airport.
This dispute had led to ASL refusing to purchase fuel from CAMS and entering into an arrangement with RUBIS, pending the green light to operate its own fuel farm at Ogle.
However ASL General Manager, Annette Arjoon-Martins, had claimed that the Ogle Airport Inc. kept shifting the goal posts with regards to the requirements for operating the fuel farm, a claim which has been flatly denied by OAI.
Late last week, an emergency meeting was convened at the Minister’s instruction involving the Guyana Civil Aviation Authority (GCCA), Ogle Airport Inc., Caribbean Aviation Maintenance Services (CAMS) and ASL.
The GCCA went to the meeting tasked with a mandate from the Minister to address and resolve the aviation fuel supply irregularity at Ogle Airport. According to reports a road map to achieve this was clearly identified.
The ASL General Manager, while welcoming the intervention of Minister Robeson Benn into the dispute, accused Public Relations Consultant Kit Nascimento of misinforming the media.
But according to a statement from OAI, the meeting, which was chaired by Hugh Denbow in his capacity as Chairman of the Civil Aviation Board, did not identify any road map to address and resolve the aviation supply irregularity at Ogle.
Instead, he said, “The meeting was called to review the temporary situation that had arisen for the supply of fuel at the airport as a result of RUBIS action, to enquire whether RUBIS had similarly informed any other user of fuel at the airport (LIAT had been so informed) and to discuss the issuance of a licence to ASL by the Airport to be a Commercial Fuel Handling Agent, subject to compliance to the conditions of the licence, including the condition of liability insurance.”
According to OAI, the meeting arrived at no conclusion and issued no directions.
He explained that it is perhaps worth noting that the government granted an import licence for aviation fuel to ASL, having, the year before, refused a similar application from CAMS. This led to the Aircraft Owners’ Association writing, on September 16, 2011, to then President, Dr. Bharrat Jagdeo, on behalf of all of its members expressing concern about “an unfair advantage to ASL”, by discriminating against other operators.
The OAI further explained that in March 2012, Ogle Airport and Air Services Ltd. entered into a Memorandum Of Understanding (MOU) arranged by the Office of the Prime Minister and the Guyana Energy Agency (GEA).
It was agreed, amongst other matters, that, OAI would “formally contract and receive recommendations from Mr. Dennis Burchell, IATA/JIG International Aviation Fuel Auditor on the existing fuel handling, storage, transportation and delivery systems operated by ASL” and “provided that the recommendations by the consultants revealed that the ASL’s system are deemed unsafe or contrary to recommended guidelines, ASL may arrange for the purchase and supply of aviation fuel at the airport from Rubis to be delivered through the CAMS facilities at the airport” and “notwithstanding any findings, explicit or implied” ASL will complete construction of its own fuel facility. ASL completed the construction of their fuel farm (facility) which was inspected and approved by Mr. Burchell on March 12, 2013.
“Since the completion of its fuel farm, ASL, as we have seen, having first applied for a licence to operate as a Non-Commercial Fuel Handling Agent, has now changed and has applied to be licenced as a Commercial Fuel Handling Agent, but has balked at having to satisfy the conditions of the licence: ‘to provide evidence of insurance…from an accredited insurance licensor’,” the OAI statement said.
The licence requires provision by ASL of comprehensive liability insurance in the amount of at least US$10M and Personal injury in the amount of US$10M.
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