US-based private aircraft association blasts proposed LPIA fee

The US-based Aircraft Owners and Pilots Association (AOPA) has blasted Nassau Airport Development Company (NAD) for what it called an “unnecessary, unfair and unreasonable” fee proposed for all international general aviation passengers landing at Lynden Pindling International Airport.

NAD has targeted February 1, 2022 as the start date for the new $28 fee for passengers arriving via private aircraft from international destinations. It is considered an airport improvement fee (AIF).

In a September 23 letter to NAD Vice President of Marketing and Commercial Development Jan Knowles, AOPA’s Senior Director of Regulatory Affairs Christopher Cooper recommended NAD withdraw the modification to airport fees and charges notice, arguing that GA currently pays their fair share for their use of LPIA and should not be burdened with additional fees used towards capital improvements, where direct benefits are not realized.

“AOPA understands and supports the need for airports to have adequate funding to maintain the infrastructure and services necessary for the safety, accessibility and efficiency of its users. However, AOPA is strongly against unnecessary, unfair and unreasonable fees and charges that negatively impact and restrict the economic benefit general aviation provides,” he said in the letter that was recently made public.

“AOPA believes the proposed implementation of a $28 AIF to international general aviation passengers landing at Lynden Pindling International Airport is unnecessary, unfair and unreasonable and should be withdrawn. Alternatively, the proposal lacks sufficient data and rationale to justify why a $28 AIF is appropriate and in what manner it will be used to support infrastructure that directly benefits GA. NAD should provide the public with relevant data and rationale in justification of a $28 AIF before any decision is made.”

There are currently no passenger fees for general aviation non-commercial passengers.

In early August, NAD published its proposed modification to airport fees and charges, citing that though GA traffic comprises approximately 40 percent of landings at LPIA, revenue attributable to all GA operations at the airport accounted for an average of only 11 percent of total aeronautical revenue respectively in the fiscal years 2018, 2019 and 2020.

NAD added that GA’s average contribution inclusive of the passenger facility charge was 3.29 percent over the past three fiscal years and that the majority of aeronautical revenue comes from commercial passenger fees (61 percent) and commercial landing fees (24 percent).

Cooper said NAD did not provide sufficient analysis or explanation as to whether it presented an appropriate balance of revenue, or whether a $28 AIF amount is appropriate.

“Demanding GA pay a greater share for maintenance and capital improvement costs related to runways, taxiways, parking ramps and terminal buildings that are either used exclusively by air carriers, or damaged at a disproportionate rate by air carrier operations is unnecessary, unfair and unreasonable. And while GA is more than willing to pay for justified fees for services and infrastructure that provides direct benefits, it is unreasonable and unfair to expect any entity to pay for fees that are a result of the inability to adequately plan and save for expected debt payments and scheduled capital improvements,” he said.

“From all accounts, GA currently contributes its fair share to LPIA considering GA’s proportional needs and usages of the existing infrastructure and the fees currently paid to FBOs, NAD and the Bahamian government. In the spirit of fairness and reasonableness, AOPA recommends NAD withdraw this proposed modification to airport fees and charges notice.”

Cooper also argued that there was little details provided on how the AIF will be appropriated to specific projects that will benefit GA.

He urged NAD to consider alternative options because, he argued, such a fee would “create unfairness for smaller GA aircraft who might carry more passengers than larger turbine aircraft”.

“AOPA understands the challenges the entire aviation industry has faced in the last year and a half, including airports in tourist-dependent areas. COVID-19 crippled airlines’ schedules and travel restrictions have kept people from travelling in large groups,” Cooper said.

“However, the GA industry remained strong and resilient in the face of a pandemic. GA was able to continue to travel to areas like The Bahamas, bringing with it much-needed economic benefit to airports and surrounding communities. Since many GA operators cannot pass on added fees and charges to customers, any additional exposure to costs will only discourage travel to those areas.”

The AOPA is a Maryland-based non-profit political organization that advocates for general aviation.

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source https://thenassauguardian.com/us-based-private-aircraft-association-blasts-proposed-lpia-fee/