Dear Editor,
Minister Patterson’s address at the Ogle Airport renaming was significant to NATA. That our concerns had not fallen on deaf ears and were deemed to have merit, and his recognition that what had worked ten years ago may not be applicable today were instructive. His pledge to ensure that the legal review of the lease between the government and OAI will be done in a consultative and inclusive manner was most important, since this approach is a foreign concept in our relationship with OAI.
The findings of that review of the lease agreement, will “form the basis of determining the way forward as regards to the proper implementation of the Agreement” and NATA looks forward to the proper implementation as this is an important safeguard of our collective interests.
We wish to acknowledge further steps taken since, such as the circulation to our membership of an important aviation policy document for our collective review and feedback. That this was done prior to the consultation was appreciated as it enabled our well-informed participation.
This new dispensation to openness and transparency by the Minister and the Guyana Civil Aviation Authority (GCAA) was clearly a foreign concept to Mr Michael Correia, the Chairman of OAI who was also present as he cautioned the GCAA about placing a draft document online. NATA commends the GCAA for taking steps in keeping with our “Green Economy” and moving away from the expense of printing numerous copies of voluminous documents for circulation. We congratulate the GCAA for their inclusionary and democratic approach to place this important document online to enable review and feedback from the industry itself and not just a select few.
Where the aviation industry’s development is concerned, it is unimportant whether aviation stakeholders are members of NATA or the Aircraft Owners Association. What is important is that compliance is non-negotiable. Non-partisan collaboration by the membership of both associations to ensure that the most productive feedback is provided to the GCAA is what the industry needs. I made this offer and remain hopeful it will be accepted so we can move forward.
Space will not permit a full response to Mr Anthony Mekdeci’s letter of May 18 in Stabroek News, so I will address some aspects (‘Correia’s companies not Air Services and Roraima Airways invested the money…’):
His statement that Ogle International Airport is, 100% built, owned and operated by a private sector company, Ogle Airport Inc is not true. An inventory of the assets of the state, the assets of the aircraft owners built by their blood, sweat and tears and finally the assets that came into being as a result of the investment of the shareholders of OAI would be instructive. This would expose Mr Mekdeci’s claims of Mr Michael Correia meeting the greater burden of the financial obligations imposed by the Lease Agreement as a misrepresentation.
A forensic audit would expose that the Correia Group of Companies were the main beneficiaries of contracts to provide services to the airport. Benefiting from such non-arms length transactions contributed to their confident investment over the years as they were assured of financial returns whether the airport made a profit or not. This windfall in the early years continued into the later years as well. They are the only beneficiaries of all international business opportunities coming into the airport. If the other companies were as fortunate to have benefited from both sets of windfalls, they could have also become greater shareholders.
Minister Patterson recognised the importance of the domestic operators also. The significant sums of revenues paid by these domestic operators over the years to the airport management also enabled the airport’s development to a great extent. Mr Mekdeci’s claim that it was only Mr Correia, the altruist, who invested his monies to make the airport’s development possible chose to ignore this reality, which is easily verifiable from the company’s financial records.
I wish to share some developments that were definitely brought about from Mr Correia’s stewardship of OAI.
In spite of government’s recognition of the significant importance of the domestic operators their needs were never catered for in OAI’s developmental plans. This enabled further benefits for the OAI Chairman’s group of companies. His Caribbean Aviation Maintenance Company Limited (CAMSL) rented office space to OAI, its tenant for sixteen years, and to small aircraft operators as well. Correia Mining Company (CMC) was leased land for use as a car park and container storage, then became landlord to aircraft operators who constructed their office and bonds out of containers on that land. Not surprisingly all of those companies went out of business as contiguous access is crucial for the survival of small operators especially, and it was absent.
The lucrative contracts which resulted from all international business being sent to the Correia Group of Companies placed a premium on the space they rented to the small operators. The small operators received eviction notices with no consideration from either their landlord, the airport’s management nor OAI as to where they were expected to go, other than out of business.
After the eviction of these small operators, OAI then had the audacity to write Air Services Limited, Roraima Airways and Wings Aviation Limited on the 22nd March, 2016 asking that they grant airside access to the small operators.
In essence, OAI through the CEO of the airport was now delegating OAI’s responsibility to these three larger companies.
NATA acknowledges all the regulatory requirements by OAI to the several international and domestic bodies which have jurisdiction over the international airport. However, this should not come at the cost of the domestic operations which the government had clearly prioritised should benefit from the “fair and equitable” development of the airport. The needs of the domestic aviation operators have been superseded by those of the international operators. We are hearing of plans to extend the runway even further to accommodate more international aircraft, whilst nine operators have to share one small, narrow, winding taxiway to the runway. This is on the side of the airport where several additional leases are being considered. In addition to the already congested taxiway increasing the operational cost of the disenfranchised operators, there are serious safety implications that both the international and domestic bodies should be concerned about.
We at NATA make no promises to anyone to remain silent on matters affecting our members. We have rights and we shall exercise them. These include approaching the courts of Guyana to address grievances. We have also exercised our right to appeal to the higher courts. The matter of the shares of OAI is before the courts and we will not argue that case in the media.
OAI has over the years evolved into a member of the Correia Group of Companies. It is no wonder that after accumulating over 60% of the shares of OAI and control of five of the seven directors, the Correia Group now feel a sense of proprietorship over the airport.
But the fact remains that Ogle Airport is, as Minister Patterson correctly stated, a national asset.
Yours faithfully,
Annette Arjoon-Martins
President
National Air Transport
Association (NATA)