Airlines not happy with Guyana Taxes – 19th Nov 2012
With EZ Jet out of the market, Caribbean Airlines and Delta are expected to enjoy a very good Christmas, even as there are concerns about the prices the two carriers are charging for travel during the busy upcoming holiday season. When EZ Jet was forced to shut down its operations, hundreds of passengers were affected and those who really want to come home for the holidays from New York will have to fly the Caribbean Airlines and Delta way. Surinam Airlines and Caribbean Airlines also fly to the Miami market from Guyana.
The Government regretted that EZ Jet did not work out as it expected but EZ Jet has been firing off at the Government for not being more supportive. EZ Jet had complained about the cost for aviation fuel in Guyana and the impact those prices had on its bottom line.
Aviation officials point out that Guyana charges some of the highest prices in the region for aviation fuel. In fact, Guyana may be second to Haiti when it comes to high prices. At least one other airline official today said the price is extremely high in Guyana which makes them understand what EZ Jet was going through and why they complained.
Caribbean Airlines is able to source most of its fuel from Trinidad and therefore does not have that major problem. Delta flies from the US so would source its fuel there. Suriname airways just does a quick stop over in Guyana on its way to Miami and then back to Suriname.
Dr. Luncheon said. the Government could not entertain EZ Jet’s request for subsidized fuel, because that would have forced the administration to offer similar concessions to the other airlines. But other smaller carriers have been complaining too about the cost for the aviation fuel in Guyana.
But its not only about that cost, Guyana also has one of the highest tax rates on airline tickets. The tax on a ticket out of Guyana is even more expensive than the taxes on tickets out of the US. Some airline officials believe if the Government is really serious about assisting the industry it would look at many of the taxes for the aviation sector especially with what appears to be a bigger push by the administration in the area of tourism.