Easier market access, better prices

THE Governments of Guyana and Suriname have taken yet another step towards strengthening bilateral relations and increasing physical connectivity between the two nations and their people, with the signing of an “open skies” air services agreement, which paves the way for easier market access for airline operators, and reduced costs for air travel.
Guyana and Suriname are both on the cusp of economic transformation and advancement, because of their new-found oil wealth. But those countries, instead of being competitors, have chosen to work collaboratively to achieve common goals.

The new air services agreement is seen as a move towards collective advancement, as both countries anticipate an increase in air traffic, and vast improvements in the general aviation sector, which is a key contributor to the Gross Domestic Product (GDP) of both nations. Studies show that the most direct activities associated with aviation create some G$20.7 billion in annual economic activity. This represents 3.2 per cent of Guyana’s total gross domestic product (GDP). Moreover, nearly 12,000 Guyanese jobs are supported by the aviation industry, the majority in either transportation or tourism. This accounts for nearly one in twenty jobs in Guyana. Air passengers also generate roughly G$1.7 billion in travel tax revenue for the government.
Those figures are anticipated to improve exponentially in the coming years, especially now with Guyana and Suriname laying the foundation for the collective advancement of aviation in both countries.

The new agreement, signed by Minister of Public Works, Bishop Juan Edghill and Suriname’s Minister of Communication, Transport and Tourism, Mr. Albert Jubithana at the Pegasus Hotel here in Guyana on Monday, paves the way for the removal of all restrictions on market access for airline operators, and the cap on capacity and pricing, and gives “route rights” to respective airlines. This, in effect, creates an open market between the two countries.

The idea of establishing such as a unit was birthed when President Irfaan Ali and other high-level local officials, including Minister Edghill, visited Suriname on November 23, for a three-day trip, to join in that country’s Independence Day celebrations and discuss matters of mutual importance. “What we are doing now is putting words into action, and this agreement is truly a historic agreement; it is an unimpeded move to ensure there is collaboration between both countries…We must be able to operate flights within CARICOM and outside of CARICOM,” said Minister Edghill prior to the signing of the agreement. This new air services agreement will complement the CARICOM multilateral air services agreement, said the minister.

The CARICOM multilateral air services agreement expands the scope for airlines owned by CARICOM nationals to provide air services throughout the Community. It allows for no restriction on routes, capacity or traffic rights, and should facilitate increased intra-regional travel, and provide more cargo options for exporters and importers, with resulting cost savings.
Those conditions are mirrored in the agreement between Suriname and Guyana, but, instead of having discretionary clauses, the bilateral agreement serves as an obligatory legal framework.
“Airlines from Guyana and Suriname operated previously under different multilateral agreements; where there were deficiencies in facilitating traffic rights, those were granted on a reciprocal basis, and were, at times, granted on a discretionary basis. But today, we are signing this bilateral agreement to continue the reciprocal exchange, but under an obligatory legal framework, which is not discretionary,” said Minister Edghill.

This new system instills more confidence in the minds of investors who are looking to pump their money into both nations. Surinam Airways and Trans Guyana Airways are among the airline operators which already fly between both countries, and provide connecting flights. Guyana is popular for having flights to North America, while Suriname is known for its relationship with Europe. Fly All Ways, which operated between both countries in the past, is already set to return to Guyana very soon.
“For airlines like Fly All Ways, this agreement will aid application efforts; it is an important strategy and policy for making Guyana a hub for air travel… Airlines stand to benefit from the traffic, but the ultimate beneficiaries will be our people; they will be able to travel with ease, and in a cost-effective manner,” said Minister Edghill.

Minister Jubithana echoed similar sentiments as Minister Edghill, but like Director-General of the Guyana Civil Aviation Authority (GCAA), Lt. Col. Egbert Field, he was amazed by the expedience in preparing everything regarding the open- skies agreement, and having it ready for World Aviation Day 2020, which was commemorated on Monday.
He said the importance of such an agreement cannot be understated, as there is no productivity without connectivity. “The open-skies agreement is one of our furthermost agreements to connect communities, create economic growth, and contribute to sustainable development on both sides,” said Minister Jubithana.

The agreement, he said, “will serve as an air bridge, to make both markets accessible, and encourage optimal use of air traffic in a safe and secure manner.”
This agreement is seen as timely for both countries, as aviation, globally, has taken a hit because of the novel coronavirus (COVID-19) pandemic, which has discouraged travel among countries.
The local aviation industry, after declining significantly over the past nine months because of the pandemic, is, however, on the road to recovery, with over 5,000 persons arriving in Guyana since the country opened its international airports on October 5, 2020.

Guyana’s two international airports, the Cheddi Jagan International Airport (CJIA) and Eugene F. Correia International Airport (ECIA), were closed to incoming commercial international flights on March 18, 2020, after Guyana recorded its first COVID-19 case on March 11.
The airports were initially scheduled to close for a two-week period, however, as cases in the country increased, the closure continued to be extended. But the new Government, after an analysis of the situation, thought it best to reopen the airports under strict conditions aimed at reducing the possibility of Guyana recording imported cases of COVID-19.