GA 2000
Editorial
GA 2000, our privately owned national flag carrier (government owns 49% and Guyanese entrepreneurs 51%) has been flying for four months. Starting in the middle of a peak season, which was not ideal as it lost the chance of building up bookings for the period, it has nevertheless already established a creditable record. Management says that in August it achieved 75% of the market share of its predecessor Guyana Airways Corporation (GAC) in its best years, in September it equalled GAC's recent years and in October it exceeded GAC's best year to New York and Toronto. However, because it is using a larger aircraft than GAC used to, the A 300 airbus, a 278 seater wide body plane, its average load still remains low. This plane can provide direct flights to New York and Toronto with all passenger baggage and there is room for expansion as demand grows. However, the excess capacity means an extra initial cost, though this has been partly offset by the development of a freight service for exporters of produce. GA 2000 has faced fierce competition from BWIA, the established airline in the Commonwealth Caribbean, which last year showed its first profit in over 50 years of operation and North American Airlines, a charter service out of New York with reciprocal rights as a US flag carrier. The US government requires small, single airline countries like Guyana to accept charter airlines as national flag carriers for the US under its open skies policy even though they do not have to commit to scheduled flights all year round. As a result of this competition fares have been reduced and passengers have benefited. To date GA 2000 has maintained an excellent record with baggage (no delays or loss) and sticking to scheduled flight times and there are no `red eye' flights at 6:00 a.m. It has also imposed high security standards at the airport to avoid having to pay heavy fines for drugs or backtrackers found on board. When it starts its service to Miami later this month it will have added just under 2000 seats per week in available passenger traffic, making it much easier for Guyanese to book flights at short notice. So there have been many pluses. Yet in retrospect it was never going to be easy. The company took over a lot of debt. Fuel prices have increased. It may be several years before the company shows a profit and it would not be surprising if it faces cash flow problems, now and until it is well established. It was recently announced that Air Jamaica, now privately owned, will be getting a US$33 million cash injection as part of a longer term US$100 million Jamaican government guaranteed refinancing package and BWIA is buying nine new aircraft on the strength of a US$210 million Trinidadian government guarantee. Small national airlines do not have an easy time though in Jamaica, for example, Air Jamaica is seen as valuable to the tourist industry and gets substantial government support. This newspaper strongly supported the acquisition of GAC by local entrepreneurs when it was offered for privatisation. A group of them, some connected with the domestic airline industry, won the bid, invested substantial sums and are off and flying. Passengers have said that the flights are comfortable and the service good. Management has shown the ability to face the many challenges that have arisen and to maintain high standards. Those who travel frequently to North America have already been well served by the increased competition and reliable service this new local airline has provided. It must be hoped that the airline will continue to enjoy the support of Guyanese and that management will deal resourcefully with the financial and other pressures that inevitably face a new business.
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