Deputy Prime Minister and Minister of Tourism, Investments and Aviation Chester Cooper said yesterday 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 - including 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.
They alleged that The Bahamas is levying "astronomical charges" for air navigation services that exceed the costs to The Bahamas of providing those services by millions of dollars.
Cooper said yesterday that though the DoT recognized the sovereignty of The Bahamas to charge and collect its fees, it has requested further consultation on those fees.
"The DoT raised questions about the methodology used to assess the fees and is seeking to have a clearer understanding of the matter through bilateral consultation at the state level, under the provisions of the Air Transport Agreement that exists between The Bahamas and the US. We expect these consultations will begin within 60 days," Cooper said in a statement released yesterday.
"We are pleased by the recognition of The Bahamas' sovereignty in this matter and we are happy to enter into consultations with the US government, as we continue to strengthen our partnership. We will continue to work with our airline partners to make doing business with The Bahamas a mutually rewarding experience."
In May 2021, the Bahamas Air Navigation Services Authority (BANSA) and the US Federal Aviation Administration (FAA), which has historically provided air traffic services for Bahamian airspace, entered into a formal air navigation services agreement (ANSA) to allow The Bahamas to collect fees for the use of its airspace.
The agreement was that the FAA would monitor the airspace at no cost to The Bahamas, except for an annual $80,000 fee to acquire data on airlines passing through Bahamian airspace.
The airspace fees announced in May 2021 were $1 per arriving and departing passenger for all airspace users that land and take off from Bahamian airports and fly within Bahamian airspace; plus a flat fee of $10 up to $61 for each flight, depending on the maximum take off weight (MTOW) of the aircraft.
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