WORKSHOP ON AIR INTEGRATION

September, 10th and 11th 2014

Rio de Janeiro, Brazil

Multi-stakeholder Approach to Air

Transport Development – Guyana’s

Experience

SAHEED SULAMAN

GUYANA CIVIL AVIATION AUTHORITY

COSIPLAN

Introduction

Area: 214,969 sq.km

Population: 747,884 (2012 Census)

Population Density: 3.5/sq.km

Industries: Bauxite, Sugar, Rice,

Timber and Gold Mining.

Introduction

“Guyana may be the

best kept secret of South

America” – National Geographic 2014.

Overview of Air Transport Sector in Guyana

Air transport industry is divided into two broad groups

Domestic Aviation International Aviation

Within border flights

connecting

coastland and

hinterland

Cross-border flights,

transporting cargo,

mail and passengers

Guyana Aviation Sector

Air Transport Providers

Airports

Cargo Operators

Passenger Airlines

Charter Operators

Air Navigation Services

Airport Operations

Ground Handling, Catering, Aviation Security

Ancillary Services,

Fuel, Cleaning, Security,

Equipment

Others Retail, Food &

Beverages, Hotel, etc

Aviation Services

Commercial Services, Financing, Insurance,

Consulting etc.

Education/Training Institutions

Regulatory Authority

Trade & Tourism

Multiple Stakeholders

GCAA

The Need for Synergy

Source: IATA Economics Briefing No 4: VALUE CHAIN PROFITABILITY by Mark Smyth & Brian Pearce, IATA, June 06

The importance of Synergy for development

Synergy reduces the “wastage” of scarce resources and valuable capital.

Case Study of Redjet & Ezjet

Number of flights conducted by Airlines (2010-2012)

104

96

117 115121 120 119 120 119 117 116

140

124

112

123 120124

138142

171164

174

144

178

169 170175

187

168

193

154

175168

147

155

177

6256

62

75 75

60

72 70 7266

60

78

68

5662 60 62

55

103 105

6762 60

73

90

71

62 59 62 6256

67 64 63

33 30

19 1621 20 17 18

31 31

16

26

17

26 2316 18 17 18

26 29 31

1713 13

19 20 18 17 16 17

25 2731 30

18 18 171519

28

40 38

5156

40

18

9

2622 23 22

18 1823

31 30

52

36

Nu

mb

er

of

Flig

hts

CAL LIAT DELTA REDjet EZJET

Role of Government

In 1993 Government initiated a National

Development Strategy (NDS).

The NDS identified the challenges in the air

transport sector and proposed strategies to

mitigate the challenges and grow the sector.

Air Transport Challenges

Limited runway

length at Cheddi

Jagan

International

Airport

Weak

Legislation

Major

international

conventions on

civil aviation

have not been

ratified. substandard

quality of

airfields

No effective

and

equipped

Search and

Rescue Unit

No Air Services

Agreements

exist between

Guyana and

most countries

in the world.

Lack of

coordination

among

stakeholders

Limited

International

air

connections Public service

bureaucracy

substandard

physical

facilities at

Ogle

Aerodrome

Strategies implemented since 2000

Invest to improve the physical

facilities at Airports

Autonomous Airports

Authority

Autonomous Civil Aviation

Authority

Revised and update

Legislation and Regulations

Establish and strengthen

Search and Rescue Systems

Increase frequency of

international flights

Encourage & Promote Private

Airlines

Establish and renegotiate

ASAs

Liberal Approach

The strategies followed an “Open Skies

Policy” and Liberal Approach for the

development of the air transport sector.

Result: Air Transport Sector

CAGR = 14% (2006-2013)

Direct contribution of the

Air Transport Industry

accounts for approx. 1% of

Guyana’s Real GDP.

Provides an estimated

3,000 Direct jobs

Result: Domestic Aviation

Pax CAGR = 15.6%

Cargo CAGR = 14.2%

Result: International Aviation

Pax CAGR = 1.3%

Cargo CAGR = -3.1%

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

-

100,000

200,000

300,000

400,000

500,000

600,000

04 05 06 07 08 09 10 11 12 13

Passengers Cargo (Kgs 1,000)

Public-Private Partnership in Air Transport

The Government of Guyana has adopted a Public-Private Partnership (PPP) model in promoting the development of the country.

Private investment brings efficiency and increased productivity while public involvement brings stability.

The PPP model has been used in the development of the Ogle Airport.

Result: Ogle Airport

2013 data

130 flights daily

445 passengers daily

50,300 kgs of cargo

daily.

Building a Hub

In 2012 the Government took a decision to deliberately make the Cheddi Jagan International Airport into a Hub serving as a major transit point for African, Latin, South and North American traffic.

Source: http://gifsec.com/funny/air-traffic-over-the-world-gif/

Road Map to Hub Development

Hub Study by

IKEW UK LTD

ICAO ICAN Strengthening

Institutional & Regulatory

Capacity

Airport Investment &

Infrastructural Development

Passenger Growth Projection

With the expected improvement in airport capacity,

additional routes, additional airlines and growth in the

tourism sector; annual passenger movement is

projected to grow at:

3% in 2015

4% in 2015~2020

5% in 2020~2030

Guyana’s Air Connectivity with Brazil

Regional Connectivity

With all the infrastructural development

in the region, there is still a need to

improve regional connectivity.

There is a need to move away from the

dependence of flying North to reach

South.

Regional Connectivity

Guyana still does not have Bilateral Air

Services Agreement with most South and

Latin American countries, this is now

changing and must change quickly.

Regional Connectivity

Less developed countries should be able to

benefit from the growth of stronger

economies with better hub network. This

will help to improve the air transport

infrastructure within the region.

Recommendation

Technical Study be done to improve the air connectivity between the Guiana Shield (Venezuela, Guyana, Suriname, Brazil) and the rest of South America.

Recommendation

The objective of the study is to create a simulation if certain variables are changed, how will air connectivity improve.

Funding to be sought through collaborative effort.

Thank You