Hike in Airport landing fees is `far too much'
Sharply increased Airport landing fees recently announced by Government are ill-advised, says Shadow Tourism Minister David Allen.
Although airlines serving Bermuda have swallowed the higher fees without protest, Mr. Allen said the increased costs would have an adverse effect on service to the Island, particularly in winter.
"One thousand percent is far too much,'' Mr. Allen told The Royal Gazette yesterday.
Transport Minister Wayne Furbert announced that landing fees -- which had been stuck for years at 30 cents per thousand pounds under the US Navy -- would rise in stages to $3.25 per thousand pounds by April 1. That would raise Government an extra $3.6 million.
At the same time, new charges to airlines for pre-Customs clearance would be introduced, raising another $500,000.
Airline officials have said the new rates followed considerable dialogue with Government and Bermuda's rates are still lower than most other destinations.
But Mr. Allen said Mr. Furbert had taken a "sledgehammer approach,'' which was "very simplistic.'' Instead of jacking up rates across the board, he should have brought in lower rates for the winter and only considered higher rates during the peak summer season, he said.
"We have a very slack winter season and a relatively busy summer season,'' Mr. Allen said. "We have some planes coming here with 12 people on them in January, but it's very important that they maintain those flights.
"This is going to act as a disincentive to keep those flights operating in the winter.'' Fees could also be staggered throughout the day to give airlines an incentive to land at times other than the midday crunch and reduce congestion, he said.
The increases would contribute to the perception that Bermuda was a high cost destination which was "pricing itself out of the market.'' And when airlines were looking at removing olives from salads to save money, a collective hit of $4 million was something that "sooner or later they're going to take note of, particularly in their winter schedules.
"It's ill-advised,'' Mr. Allen said. "Mr. Furbert is definitely off base on this.''
