Bahamas Defends Air Fees in Wake of U.S. Airlines' Objections

A government official in the Bahamas labeled the commercial aviation fees that took effect July 1 as "modest" and said they "do not begin to cover expenses involved in maintaining a safe aviation environment in a country with 20 government-owned and operated airports on 15 different islands."

The fees include a per-aircraft customs-processing fee of $75 as well as $75 per departure for each commercial flight.

In addition, there is an increased customs service charge for each flight arriving and departing the Bahamas between 5 p.m. and 9 a.m.: $50 for aircraft with less than 30 seats and up to $200 for planes with 70 or more seats.

The fees prompted strong reaction from U.S. carriers when introduced. Airlines for America, or A4A, the trade group for U.S. commercial airlines, claimed there had been a lack of adequate advance notification of the new fees and said there was no justification for the increased costs, and it warned that the fees could prompt U.S. carriers to reduce service to the Bahamas.

"The government was somewhat surprised at the comments, given that persons with knowledge of the aviation sector would recognize that the Bahamas has made and continues to make significant investment in the sector," said Simon Wilson, deputy financial secretary.

These investments include a new $30 million facility in Marsh Harbour, a $15 million radar system for New Providence (Nassau's location), a $3 million contract to repave Treasure Cay Airport and additional investment to ensure that the Bahamas remains "in good standing with the International Civil Aviation Organization and the FAA," Wilson said.

The fees are part of the 2013-2014 government budget, which Wilson said was announced May 29 by the prime minister and posted on the government's website. The need to review the fee structure was highlighted back in February by Prime Minister Perry Christi and Minister of Finance Ryan Pinder.

The fees are part of a program to reduce government debt through expenditure cuts and new revenue measures "on those that use services provided by the government."

A4A sought to clarify the new fees and the reasoning behind them in a June 28 letter to Charles Turner, comptroller of customs in the Bahamas.