The little airlines that could
Stabroek News
June 11, 2004
Air carriers, Universal and North American Airlines, have managed to carve out a healthy share of the local market mainly by offering non-stop flights at cheap prices.
The once dominant, BWIA is at a distinct disadvantage since its flights go through Trinidad thereby increasing flight times by at least one hour.
North American is now in its fifth year of operation in Guyana and Universal is in its second. North American came into being at about the same time as the disbanded GA 2000, which had been designated the local flag carrier.
Mark De Freitas from Universal said the choice of the aircraft, a 767 Boeing 3000 ER (Extended Range), has been crucial to the company's success. The 767 has a lower operating cost than other planes due to its large capacity for passengers, cargo and fuel.
Because of the capacity Universal is able to maximise its revenue by carrying cargo and eliminating instances of pilfered luggage that has to be removed. All baggage is now containerised.
De Freitas said that last summer and over the busy Christmas season, BWIA and North American Airlines had actually asked Universal to bring in some baggage for them.
Universal was fortunate to get a favourable wet lease contract at a time after the September 11 attacks when there was alot of spare capacity in the industry. A wet lease, is also named an ACMI lease (standing for Aircraft, Crew, Maintenance, and Insurance). It's much like renting a car except you get a driver and mechanic. It is useful for a company just starting operations while local people are trained and while they gain sufficient experience. It is also a low cost way to test a market's viability. It signed a relatively low cost arrangement to lease the Boeing from LOT Polish Airlines, which has three such planes flying between Europe and North America.
Universal also plans to lease a second aircraft.
Another factor in their favour, said De Freitas was that Universal flights leaves Guyana around midday meaning no early morning rush to the airport or late night arrivals in New York. It is a trend others were now following.
Universal operates four flights per week to New York during the low season and six flights during the peak season from July 1 to the end of August and the three weeks before the Christmas holidays.
As for reliability, since Universal came into existence in December 2001, De Freitas said there were only four incidents in which it had to reschedule.
Universal flies to New York, Fort Lauderdale, Trinidad and Suriname and is soon to start regular flights to Manaus, Brazil. Plans are also in train for Universal to fly to Toronto. All Universal flights are non-stop and the flight to Toronto will also be non-stop.
North American operates three non-stop flights - Tuesdays, Thursdays and Saturdays - from Guyana to New York. Another will be added on Sundays for the summer.
Universal spokesman, Junior Horatio feels that one of the advantages North American Airlines has is that it operates more than one aircraft. It has a fleet of three 767s and six 757s. He says the air carrier load factor has been good, especially during the Christmas season and the summer.
On time arrival and departure, for both airlines, has been pegged at 95% and the passenger to seat ratio stands at about 80%.
Both Universal and North American are currently actively promoting tourism and one of the reasons Universal Airlines took tour operators and the media to Manaus was to promote tourism, De Freitas said.
Both airlines feel they have been able to gain a fair market share to New York because of the non-stop service. In 2003, Universal brought in 37,000 passengers from New York, up from 30,000 in 2002 with the large majority being local Guyanese and those from the Guyanese diaspora. De Freitas said Universal has gained a fair share of the Trinidad market as well while both airlines have introduced frequent flier programmes to encourage customer loyalty.
For this summer, Universal is offering a G$146,520 return 30-day fare to New York minus a G$4,000 airport tax.
A return thirty-day fare to New York on North American for the summer is G$144,198 minus the local airport tax.
For the same destination via Trinidad, BWIA is offering a 30-day return fare at G$153,089 without the local airport tax.
On all the airlines passengers may take two suitcases weighing a maximum of 70 lbs each with 15 lbs in hand luggage.