Airport costs set to soar
terminal.
And one airline believes a rise in passenger fees and extra expenses associated with a new computer system could make Bermuda one of the most expensive airports in the Caribbean region.
But the airport has countered that the facility has been radically improved in recent years and that a rise in visitor fees was the first made in ten years.
From April 1, fees for arriving passengers will rise from 59 cents to $1.05.
And next April, the charge will go up again to $1.20 each.
With approximately 370,000 air visitors in 1999, that means airport income from the fees could rise from over $210,000 to around $380,000.
American Airlines bring in more than 100,000 of those yearly visitors, giving them a cost increase from approximately $59,000 to $105,000.
In addition, American say the new common user computer system for departure check-in will add another $150,000 a year to their budget.
American's local manager, Carole DeCouto, said the changes were another added cost of doing business in Bermuda.
The fees, she said, were one way that the airport was trying to recoup some of the millions spent at the facility in the last few years.
"These fees are levied by a Government department, what can we do? It is very difficult to increase the air ticket,'' she said. "It is a very expensive airport, one of the most expensive in the entire Caribbean, Latin America region.'' And she said the new computer system, which replaces airlines' own terminals but increases the number by four, was another bone of contention.
"There was consultation for two years, we wanted to keep our own system,'' she said.
"All the airlines have to use the system, the benefits are that you can go to any position and be running in minutes. In the morning when you are the only flight you can increase from nine terminals to 15 or 20, or however many you need.
"During the peak times there is no extra value because everybody wants space.
The most you can have is eight positions.'' It is understood that the airlines had the opportunity to drive the computer project themselves but did not take it, leaving the airport with no option but to take the scheme forward.
British Airways local manager Philip Troake said: "I am not unhappy with the principle of it. I would have gone that way anyway. We would have been happier if we could have gone with the company we were already dealing with.'' Acting Airport Operations general manager Marshall Minors said there had been few complaints about the computer system, although there was some hesitation to begin with.
He said the airport had taken over management and maintenance of the project, which was found in many airports across the world, taking that cost away from the airlines.
"There were now 40 terminals,'' he said. "During peak periods there are eight positions free. There is also an area where Air Canada and British Airways check in, they are available for US carriers to use.'' And the new fee structure was agreed to by all the carriers, he added.
"The fees had not been raised in ten years,'' he noted, "because of the extent of the improvements we had, the fees had to reflect that.''
