By Antonio Dey | HGP Nightly News|
GEORGETOWN, GUYANA — The Aircraft Owners Association of Guyana Inc. (AOAG) has defended current domestic airfare structures, maintaining that ticket prices reflect severe operational overhead rather than excessive profit margins.
The association’s statement follows strong criticism from President Dr. Irfaan Ali during a recent community outreach in Moruca, Region One (Barima-Waini), where the Head of State expressed frustration over high freight and passenger airfares despite substantial government investments in hinterland aerodromes.
High Capital Costs and Mandatory Insurance Burden
Responding to executive concerns, the AOAG outlined the capital expenditures and operational expenses required to maintain safe air transport across Guyana’s interior:
- Aircraft Capital Repayments: A single Cessna Caravan requires monthly capital repayments exceeding US$40,000, with direct operating costs averaging approximately US$700 per flight hour.
- Fleet Acquisition Expenses: Modern turboprop aircraft represent multi-million dollar investments, with Tecnam P2012 Travelers costing US$3.2 million, Cessna Caravans priced at US$3.8 million, and HAL 228 aircraft reaching US$10 million.
- 300% Higher Insurance Premiums: Aviation insurance rates in Guyana are 300% higher than in the United States due to high-risk flight environments, unpaved airstrips, unpredictable weather patterns, and remote hinterland terrain.
While acknowledging that government investments have improved runway safety, the AOAG noted that frequent operations on unpaved or red-earth strips continue to accelerate airframe wear and maintenance cycles.
Rejection of Excess Profit Allegations; Regional Fare Comparison
The AOAG firmly rejected assertions that local airlines are engaging in price gouging, pointing to daily market competition among multiple private operators vying for passenger and cargo charters.
The association highlighted that comparisons with regional carriers operating similar short-haul island routes in the Caribbean demonstrate that domestic airfares in Guyana remain generally lower, despite local pilots facing far more challenging hinterland operating conditions.
Proposed Targeted Voucher System for Vulnerable Hinterland Residents
To address affordability while maintaining flight safety standards, the AOAG expressed willingness to submit to an independent review of domestic aviation economics and proposed a state-backed Targeted Transportation Assistance Program:
- Voucher Subsidies: A voucher-based fare subsidy specifically targeting school children, medical emergency patients, pensioners, and low-income hinterland residents.
- Market-Based Execution: The voucher framework would allow vulnerable passengers to select their preferred private carrier, preserving market competition while providing immediate price relief.
The proposal comes as the government considers parallel sea freight interventions, including a dedicated Charity-to-Moruca cargo vessel service, to lower transportation overhead across Region One.
