Domestic aviation operators have proposed to the Government a targeted transportation assistance programme, including a voucher system for schoolchildren, medical referrals, pensioners and low-income hinterland residents, as part of efforts to ease air travel costs.
The Aviation Operators’ Association of Guyana said the proposal was raised during meetings with Government officials, including ministers responsible for Finance and Aviation, aimed at addressing airfare concerns raised by President Dr Irfaan Ali.
In a press release issued Tuesday, the association said the approach would provide direct assistance to those who need it most while preserving competition, encouraging continued private investment and maintaining safe, reliable air services.
Explaining the cost pressures behind current fares, the association said airfares are driven by the actual costs of providing safe transportation, including fuel, maintenance, spare parts, insurance, financing, regulatory compliance and skilled personnel.
Among the largest of these costs, it said, is aircraft financing: the capital repayment for a Cessna Caravan alone exceeds US$40,000 per month, or about US$700 per flight hour, regardless of whether the aircraft is parked or flying. A Tecnam P2012 Traveler costs approximately US$3.2 million, a Cessna Caravan about US$3.8 million and the HAL 228 approximately US$10 million, the association said.
Insurance adds a further burden, with aviation premiums in Guyana roughly 300 per cent higher than in the United States and among the highest in the Caribbean, the association said, attributing this to the country’s remote aerodromes, tropical environment, limited emergency infrastructure and short unpaved runways.
The association also acknowledged Government investment in upgrading hinterland aerodromes but said aircraft still operate on laterite runways and gravel strips requiring higher maintenance costs than in the Caribbean or the United States.
Despite these challenges, it said domestic airfares remain lower than comparable Caribbean routes, indicating operators are not profiteering, and reaffirmed willingness to participate in an independent review of the industry’s economics to guide future policy decisions.
