Bahamasair’s chief executive Tracy Cooper expects a disagreement between the Bahamas government and US airlines about air traffic control fees to be resolved by the end of this week.
The Nassau-based flag carrier appears to be caught in the crosshairs of the quarrel through no fault of its own, and Cooper tells FlightGlobal on 30 September that a solution to the problem could be imminent.
“We are working with everything within our means to have a resolution,” Cooper says. “There are plenty of moving parts. And … we think that we’ll have an expected resolution.”
On 12 September, US airline lobby group Airlines for America (A4A) had complained to the US Department of Transportation (DOT), alleging that the Bahamian government charges unreasonable air navigation service fees, violating the US-Bahamas air transport agreement. A4A urged the DOT, therefore, to take out punishment on Bahamasair, and to prohibit the government-owned flag carrier of the Bahamas from flying US routes – unless the government eliminates the alleged “excessive charges”.
Specifically, A4A asked the DOT to hold up approval of Bahamasair’s pending request to renew its US operating authority, which it submitted in August.
The row does not affect current routes that the airline flies, between Nassau and five US cities: Miami, Orlando, West Palm Beach, Fort Lauderdale and Raleigh-Durham, Cooper says, as permission to fly into those destinations “should not change”.
“Bahamasair has a permit to fly into certain cities. The exemption that we applied for was a blanket exemption,” he adds. “We think that will be resolved by Friday, but again, it should not stop our existing operation.”
The airline operates nine aircraft: four Boeing 737-700s, three ATR 42s and two ATR 72s. Cooper says the carrier is in the process of acquiring one more ATR 72 in the near future.
Bahamasair on 18 September urged the DOT to reject A4A’s request, noting that all airlines, not just US carriers, pay the fees. It says prohibiting Bahamasair from flying to the USA would be an “extraordinary proposed punishment” in response to A4A’s dissatisfaction with fees over which Bahamasair has no control.
The dispute about fees is several years in the making.
In December 2022, A4A brought the concern to the DOT in a complaint. It alleged that the fees were discriminatory and far in excess of the cost of the services, violating both US law and the countries’ air transport agreement. The DOT denied the complaint, saying that while it was concerned the fees might be excessive, it was unconvinced the charges were discriminatory.
Negotiations between A4A, US airlines, the US government and the Bahamas Air Navigation Services Authority have continued in recent years, but to no avail, according to the US airline trade group this month.
