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.
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: 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.
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
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.