The government estimates it will collect $42.925 million in overflight fees during the 2022/2023 fiscal year under the new air navigation services regime, Deputy Prime Minister and Minister of Tourism, Investments and Aviation Chester Cooper said yesterday, as he outlined the recent fee dispute the government overcame with eight US airlines.
Cooper revealed that fees invoiced since the start of the regime in May 2021 to November 2022 totaled 49.69 million, of which $44.69 represented overflight fees and $4.45 million represented origin/destination fees.
He said the government thus far has collected $42.68 million in fees, but based on the strong rebound in tourism, he anticipates the fees collected may be higher at the end of the fiscal year.
Last month, Cooper announced that the United States Department of Transportation (DoT) rejected a discrimination complaint by Airlines for America – a lobbying group that represents major North American airlines – that the government of The Bahamas employs unfair practices when charging overflight fees to US air carriers.
In December, eight US airlines – American Airlines Group, Atlas Air Worldwide Holdings, Delta Air Lines, FedEx, JetBlue Airways, Southwest Airlines, United Airlines, and United Parcel Service – filed a joint complaint through Airlines for America, claiming that the government’s overflight fees were unjust, discriminatory, anticompetitive and unreasonable.
Cooper updated Parliament yesterday on the decision by the DoT and the next steps for government in the matter.
“We are pleased to note that, on February 21, 2023, the US DoT issued an order denying the complaint against The Bahamas, indicating that it cannot conclude that The Bahamas’ fee structure constitutes unjustifiable or unreasonable discrimination. However, the DoT has expressed its intent to pursue its cost basis concerns under the terms established in the US-Bahamas ATA (Air Transport Agreement), which the government agrees is the appropriate forum for these discussions and consultations,” he said.
“In concluding, let me reassure this honorable House that the government remains committed to achieving a successful resolution of all continuing concerns with the cost basis analysis for our overflight fees. We are keen to protect The Bahamas’ sovereign rights to recover the level of fees necessary to provide air navigational services to our airspace users, which should include building out both the human and infrastructure capital necessary to eventually take control of the management of our airspace. Our intention is also to ensure that The Bahamas’ fee charging scheme is compliant with ICAO (International Civil Aviation Organization) principles.”
