Dear Editor,
Airports by their very nature are regulatory agencies, and for this reason they are managed and controlled by governments or independent airport management companies. Air-ports should never be owned/managed or controlled by one airline, because of the obvious conflicts and more particularly the untenable situation of having one airline regulating other airlines; one airline controlling the distributions of land; one airline setting and enforcing the rules; one airline developing draconian contracts for their competitors; and one airline controlling the distribution of contracts. It simply is totally unacceptable to have a situation where one airline regulates his competitors.
The existing anti-competitive environment at Ogle International Airport is a result of Mr Michael Correia serving as Chairman of Ogle Airport Inc (OAI) whilst also being the head of the Correia Group of Companies, which has two subsidiaries that provide aviation services competing with the other nine companies at the airport. This is further compounded by the principal directors of OAI, five of whom are either family or associates of Mr Correia, playing key roles in the management and regulation of the airport. The position of OAI Chairman should be held by someone who is not an aircraft operator and as such a competitor, and would have no role in the management or regulation of the airport.
The main concern of the National Air Transport Association (NATA) is with the present governance and management structure of the airport. The Guyana Civil Aviation Authority is tasked with approval of “post holders” in the airports’ management and if it carries out this function impartially this can bring about some redress to the present situation.
As it is unheard of for an airport to be regulated by an operator there is a strong need for several interventions by the Minister of Infrastructure David Patterson with whom NATA had met with on the 18th November, 2015 when we had brought to his attention our collective experience of abuse, anti-competitive tactics, and dominance by OAI and the Correia Group of Companies.
We had also requested government’s assessment of OAI‘s conformity to the reporting and other requirements clearly stated in the 25 year lease between the two parties, which we advised him would reveal glaring non-conformity by OAI and which had in essence contributed to the sad state of affairs there. We are appreciative that Minister Patterson as promised at that meeting has taken the necessary steps to have this done.
As the master lease also caters for the establishment of an Airport Review Panel to ensure government oversight of the lease between government and Ogle Airport Inc, this is also a priority for NATA and will play an even greater role in the way forward to ensure compliance by OAI. The terms of reference for this Airport Review Panel were already developed and once implemented will offer much needed redress of the abuse and dominance at this public utility.
The unforeseen governance and other challenges arising at this public utility because it is regulated by the operator (OAI), whose board members have vested commercial interests, can also be resolved by it being placed under the remit of a national airport authority under whose remit both of our international airports will reside.
NATA is appreciative of Minister Patterson giving credit to NATA for its advocacy enabling the parking area to be developed by OAI for the small aircraft operators.
We eagerly look forward to the completion of the lease review and remedial action, the establishment of the much needed Airport Review Panel and the long overdue National Airport Authority.
Yours faithfully,
Annette Arjoon-Martins
President
NATA