Transport Minister, Robeson Benn yesterday disputed the explanation by Delta Airlines that it has decided to stop flying the New York-Georgetown route from May because it is racking up losses here.
“Since its inaugural flight in June 2008, Delta Airlines has benefited from the support of the travelling public to the extent that they enjoyed the highest payload of all airlines operating into the Cheddi Jagan International Airport [CJIA],” said Benn as he presented figures, which he said illustrated Delta’s market growth here.
While confirming her company’s decision to pull out of Guyana, Delta’s General Manager, Corporate Communications in Latin America and Caribbean Sarah Lora last Thursday said, “Delta Air Lines will close its station in Georgetown, Guyana discontinuing flights between the John F Kennedy International Airport and the Cheddi Jagan International Airport, effective May 6, 2013 due to poor performance of the route.
“Although Delta would prefer to continue serving the market, flights between Georgetown and New York’s JFK International Airport have experienced a significant decline in passenger loads and revenues for the past 18 months, leading to unsustainable losses. We have made the difficult decision to eliminate our Georgetown service to better focus our resources on profitable markets.”
Speaking at a press briefing, which he held at the CJIA yesterday, Benn said government was dismayed at the announcement. “Route profitability has been cited as the reason for this action. This announcement by Delta, coming almost on the heels of the cessation of flights by low cost carriers REDjet and EZjet, is a very disappointing one,” he said.
He pointed out that when Delta began its service here in June 2008 at the end of that year it had 36,695 passengers or a 77% payload. The following year it recorded 68,273 passengers or an 85% payload. In 2011 and 2012 the airline recorded 73,673 and 78,221 passengers respectively in both cases equivalent to an 84% payload.
Further, the statistics for last month recorded 6,580 passengers and an increase in payload to 89%. “A careful look at these numbers will reveal that Delta was experiencing passenger growth despite competition from low cost carriers such as Red Jet and EZjet. The 84% average payload and the increased passenger growth are contrary to the statement of ‘significant decline in passenger loads’ issued by Delta’s Corporate Communications Manager,” the minister said.
Benn opined that the move by Delta was geared towards expanding its market and had nothing to do with poor passenger load. “Delta Airlines’ announcement of 11 December 2012, of the acquisition of Singapore Airlines’ 49% share in Virgin Atlantic for US$360 million, indicates, perhaps, a corporate shift of assets and activity to the more lucrative Trans Atlantic route for the world’s largest airline… I would be surprised that they are losing money,” he said.
However, he informed that although government found out about the pullout before the company’s official statement and was engaging other airline investors to this destination, the door is open should Delta reconsider its decision. “The Guyana aviation sector and its passengers have benefited from the Delta experience.
The ongoing and intended improvements at the Cheddi Jagan International Airport, especially the slated runway extension and new terminal building, allows us to hold the door open for Delta’s rethink of its options for its engagement in Guyana,” he said.
