Lobby group asks DOT to block Bahamasair’s operating authority amid fee spat

Bahamasair has become embroiled in spat playing out between Nassau and US airlines that fly into the island country’s airspace.

For several years, US carriers have alleged that the Bahamas government charges unreasonable air navigation service fees, violating the US-Bahamas air transport agreement.

Now, US trade group Airlines for America (A4A) is urging the US Department of Transportation (DOT) to prohibit Bahamasair’s from flying US routes – unless the Bahamas government eliminates alleged “excessive charges”.

Specifically, A4A wants to DOT to hold up approval of Bahamasair’s pending request to renew its US operating authority.

Time may be running out, as the Nassau-based carrier’s current authorisation – called an “exemption” – seemingly runs only through 3 October, according to regulatory filings.

Bahamasair did not respond to a request for comment, nor did the company’s attorney, Michael Pennekamp with Miami law firm Fowler White Burnett. The DOT and The Bahamas Air Navigation Services Authority (BANSA) also have not responded to inquiries from FlightGlobal.

Bahamasair requested the renewed exemption on 23 August, and A4A objected on 12 September. Since then, the airline and trade group have battled the issue in DOT filings.

“Because the government of the Bahamas continues to violate the [air transport agreement], Bahamasair’s application to serve the US must be denied,” A4A said in a 25 September filing.

Asked for further comment, A4A says, “We have ongoing concerns regarding the government of Bahamas’ proposal to implement exorbitant charges for air navigation services… We continue to work with the BANSA and other stakeholders to come to a consensus before new charges are implemented.”

Bahamasair has 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 airline flies from the Bahamas to several US destinations, including Fort Lauderdale, Miami, Orlando, West Palm Beach and Raleigh-Durham. Its fleet includes eight aircraft: four Boeing 737-700s, two ATR 42s and two ATR 72s, according to Cirium data.

The dispute 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 Bahamas charges airlines based on nautical miles flown through its airspace. But the US Federal Aviation Administration actually provides air traffic control service to the island nation, A4A has noted.

US airlines behind A4A’s campaign have included American Airlines, Atlas Air Worldwide Holdings, Delta Air Lines, FedEx, JetBlue Airways, Southwest Airlines, United Airlines and UPS.

The DOT denied the 2022 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 BANSA air service authority have continued in recent years, but to no avail, according to the trade group.