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On Reducing The New Airport Burden

On Reducing The New Airport BurdenDear Editor. As a proud national of Antigua & Barbuda, and one who will be obliged to pay the charges associated with the new Airport Administration Charge Act 2012 (that was debated by the House of Representatives on May 30, 2012), I am duty bound to register my displeasure.

The debate did not address an area that is of great concern to me and which, I think, if given due consideration, could reduce the burden of the increased amount that all Antiguans will have to pay to travel.
 
I wish to state from the onset that the Government must indeed take measures to ensure that the loan for a new airport terminal can be serviced and it is not uncommon for the users of the airport to be burdened with the cost.
 
My concern with the new act is that it has targeted originating and terminating passengers only, when a very high percentage of persons who use the airport are persons who are passing through Antigua, transferring from one aircraft/airline to another.

This category of passengers (transfer passengers) utilise the airport facilities, including the security screening checkpoints and the passenger departure lounge etc, but they are not considered in the new act for a contribution towards the cost of building the new terminal.
 
Apart from the fact that transferring passengers generally remain in the departure lounge and utilise the airport facilities longer than originating passengers, their baggage will also have to go through a scanning process in order for the airport to meet the International Civil Aviation Organization (ICAO) security standards.

Therefore, costly baggage conveyors and X-ray machines will have to be installed in the baggage area to facilitate this category of passengers. How can we then exclude this category of passengers from having to pay a charge in the new Airport Administration Charge Act?


 
I am contending that the total revenue budgeted from the implementation of the Act in its present form could still be realised if the amount intended to be charged was reduced, and if transferring passengers were included in the Act to pay a charge, the burden on all nationals who travel will be reduced.
 
I wish to suggest that passengers travelling on a through ticket and transferring to/from a LIAT flight, or between intra-regional flights within 24 hours of arrival into Antigua & Barbuda, should be charged a nominal fee of US $5.
 
Passengers travelling on a through ticket and transferring to/from an extra-regional flight within 24 hours of their arrival here should be charged US $15.

Without this being included in the Act, many persons (such as those arriving from the UK on British Airways or Virgin Atlantic and transferring to a LIAT flight with a through ticket to other islands) will be totally exempted from the charges as they are neither originating their journey nor terminating their journey in Antigua.
 
I am, therefore, urging the Minister of Finance and government technocrats to go back to the drawing board and do the math with the inclusion of the transferring passengers.
 
Instead of only originating and terminating passengers which means every national leaving the state and returning having to pay US $37.50 in each direction, we may be able to get the amount reduced to US $30, or less, in each direction.
 
I trust that expediency does not take precedence over getting it right this time around.
 
 
Rosen Bowery

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12 Comments In This Article   

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@Tenman

#12 ANTIGUAN WOMAN » 2012-06-04 21:58

He is totally out of touch with reality,and clearly seem to be oblivious of what is going down on the ground.Recently an old school mate visited from the US,he was in total shock as to the cost of a box of Tropicana orange juice& a regular glass bottle of coke.He viewed it as total madness,the Pm needs to let us know in what area does Antigua sells itself.He deserves another Doctorate for that statement, remember his doctoartes are for outstanding acheivemnents,t his is the most dumb comment i have heard for a very long time so he deservedly earned this one for topping the list of Ignorance.
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ANTIGUAN WOMAN

#11 tenman » 2012-06-04 21:41

ANTIGUAN WOMAN, what you have just highlighted is a clear example of why the PM is out of his depth. These guys recently increased the ABST for hotels saying the added moneys are needed for marketing. Yet the PM makes a ridiculous statement like Antigua Markets itself. This clearly answers why we have seen the absence of ads for Antigua in places where for example Saint Lucia and Jamaica are marketing.

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RE: On Reducing The New Airport Burden

#10 ANTIGUAN WOMAN » 2012-06-04 21:21

Remember A,gua markets itself,so it does,nt matter how much it cost to get here,or how much you pay for a bottle of coke,they will be droves of people coming.
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@ tenman

#9 Morris » 2012-06-04 17:51

With the amount of money collected since the initial bill, we should have the best airport in the C'bean.
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RE: On Reducing The New Airport Burden

#8 Reality » 2012-06-04 11:02

Just imagine how much more expensive it would be if they actually paid for the land they're building on!
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Reality

RE: On Reducing The New Airport Burden

#7 ABC » 2012-06-04 10:55

Good reasoning.
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ABC

Symptons

#6 dadlison » 2012-06-04 10:18

In my estimation the root of the problem is building a new terminal at all. Yes we need to modernise, but we first need to modernise those things which will see immediate returns on our investments. Not just modernising for modernising sake. Anyway the decision has already been made, and with that in mind your proposal is a sound one.
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where the money gone

#5 tenman » 2012-06-04 10:14

It seems to me very frequently, a bill is passed in parliament to raise funds to pay for the new airport which is yet to arrive. This happened in 2002 when the passenger facility charge was implemented and set to 10.00 USD. The departure tax, I recall, was also increased during the last five years using new airport as a motive. It then happened in Sept, 2008 when the passenger facility charge was increased from 10 to 25 USD. The increased revenue from this measure was to be used to finance a US.$50,690,251 bond offering by the Airport Authority. A significant portion of the amount (19,100,000 USD) was to be used to pay back short-term commercial paper notes. The government then decided it best to go the Chinese route for financing. We are now told the original increase is not enough, even though the Chinese loan, has a concessionary interest rate, yet here comes the Airport Administration Charge Act 2012 bumping costs up to 75 or 94.00 USD. Its time for a commission of inquiry into the Airport Authority
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What if?

#4 young analyst » 2012-06-04 09:14

Yes i will agree to some extent that the tax is needed to allow and terminal to operate and to pay back the loan, however what if the traveling public percentage is drastically reduce or people just simply dont travel as much because of how expensive to do so what will happen then? will another tax be introduced to an already tax heavy nation?
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@Hmmmm

#3 tenman » 2012-06-04 08:05

Hmmmm, Daily Observer is also carrying the article


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RE: On Reducing The New Airport Burden

#2 Hmmmm » 2012-06-04 07:49

Antigua is expensive in many ways, However, I have noticed that whenever making a booking on Liat to any of the other Countrries, I am yet to come across a country where the taxes added to the fare are less than that in Antigua.
@ Rosen Bowery... Great contribution. you should post this in Observer as well
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@Rosen Bowery

#1 skyewill » 2012-06-04 05:39

I did not know It would be that expensive. Antigua is an expensive destination, I don't know why but it is. To add more to an already unreasonable fare is crazy especially when the Travel Market compare prices to decide where to take their vacation. They do need to pay for the new Airport do I tend to agree with you although I don't know what is a good price those people should pay. I don't know why the government choose not to also charge those passing through but loading all the cost to people coming directly to Antigua could very well reduce the amount of people coming to Antigua. I agree with you.
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