Latest update May 7th, 2024 12:59 AM
Oct 01, 2014 News
By Zena Henry
In less than a year, three new flight services have entered the market on the lucrative
Georgetown-New York route. A few months later, only two airlines remain and passengers are bracing themselves for possible fare hikes for the upcoming Christmas peak season.
While travel agents say that the pullout of two charter services is not yet affecting the “low season”, they are not convinced that the situation will remain the same, come December.
At this time last year, passengers were paying as much as US$1,600 per return trip to the United States, using the lone carrier, Caribbean Airlines limited (CAL). Jamaica –based airline, Fly Jamaica, had not yet entered the Guyanese market. Charter Company, EZjet folded in 2012, while US-airline Delta confirmed in February of the following year that it would end its service in early May. This left the Trinidad and Tobago-owned Caribbean Airlines to rule the Guyana/New York leg.
EZjet was unable to maintain its low cost flights, plus the CEO to date is facing criminal charges in the US. Delta was conducting direct flights to the John F. Kennedy International Airport (JFK) when they said that a decline in passenger loads had led to unsustainable losses. With no other carrier to take Guyanese to the popular North American city, CAL increased airfares and travelers complained bitterly.
Even the government blasted CAL for what it said were “outrageous” increases in ticket prices, with the Tourism Ministry making statements such as, “We are not anybody’s eye pass.” Principals of the Trinidadian airline were summoned to explain the situation. APNU’s Shadow Minister of Transport, Joseph Harmon, had also asked the Government to seriously consider dropping the travel voucher tax from 15 percent to 10 percent in order to cushion the high prices.
There was much anticipation when passengers heard of Dynamic Airways’ entry into the market with low entry fares, and also when Travel Span announced that it would be returning to Guyana several years after canceling its local service some time in 2003.
Dynamic Airways, which also provided carriers to Ezjet, faced difficulty from the inception, arriving several hours late on the inaugural flight and facing restrictions from JFK officials in New York to conduct any other flight to that Port. A month after its arrival, the company reported its pull out with hopes of returning to the market last August. The company indicated a later return date but no definite word has been given.
Last week Travel Span reported that it had parted ways with its carrier provider Vision Airlines and ceased operations last Saturday. There had been several flight delays weeks earlier and it was understood that Vision Airlines was being blamed for not keeping its obligation to provide flights.
Airfares on CAL to New York currently range from US$750 to US$850 return, while Fly Jamaica is around US$750 to US$800. The prices which represent travel for early next month do not seem to reflect increases, travel agents said. “However, we don’t know what could happen later, especially in December when a lot of people want travel for Christmas.”
On the other hand, if traveling to Miami, Florida, passengers have three options. CAL is currently offering fares around US$550 to the Sunshine State, while Suriname Airways is approximatelyUS$450 and newcomer Insel Air, US$340.
APNU’s Joseph Harmon told Kaieteur News yesterday that given the current situation, it is possible that last year’s situation with respect to fare increases on the popular routes could recur.
“Once you have few services in a large market, there will obviously be competition for seats. This would generally lead to increase fares, considering the explanation of economies of scale.”
Harmon blamed the government for the constant arrival and departure of flight services after a short time in the Guyanese market. He spoke about the importance of due diligence and obligatory checks to be done by aviation officials to prevent unforeseen bankruptcy and other abrupt closures by airlines, which in turn have grave implications for the travelling public.
Harmon reiterated his call for government to decrease cost on passengers’ travel tax since the administration benefits from the fees paid by the airlines.
GRA catch EXXON trying to hunch GUYANA over 11 BUS dollars in one shot!!!!
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