WRONG_WOEID WRONG_WOEID

IATA Against New Airport Tax

Minister Mginley responded with “no comment”Antigua St John's - The International Air Transport Association (IATA) has written to Civil Aviation and Culture Minister John Maginley about what it called the “excessive” proposed Airport Administration Charge Act of 2012, which will see both inbound and outgoing airport passengers paying up to US$75, after inclusion of the embarkation tax.

The letter was sent to the minister on February 27, and a response or acknowledgement is yet to be received.

Caribarena.com contacted Minister Maginley about the letter on Sunday. He responded with “no comment”.


Signed by IATA Assistant Director of Government & Infrastructure Affairs Cyriel Kronenburg, the letter said that “…plans for yet another major increase in costs to passengers will seriously damage the ability of airlines serving Antigua & Barbuda to operate in a profitable manner, and will surpass any revenue growth for the airport and will damage the health of Antigua & Barbuda’s economy and tourism sector.”

IATA pointed out to the minister that following an initial increase in the PFC from US$10 to US$25 per passenger, adding an additional 42 percent of fees to a round trip ticket would only bring the tax cost to well above US$75.

This, it said, is a level that far exceeds the regional average and stands well beyond a viable level for airlines.

“As a comparison, the total passenger charges for successful airports such as AUA, NAS, KIN, MBJ, CUN, and PTY, is in the range of US$30 to US$40, while they all successfully made major investments in infrastructure,” the association cited.

The IATA also noted that during previous consultations about the PFC increase, airlines were informed that this escalation would have been sufficient.


“It would be prudent for the airport to show full transparency in the use of those funds prior to raising the burden to passengers once more,” IATA said.

The association noted that the sector and its supply chain in Antigua & Barbuda contribute $300 M to the economy, which is 9.8 percent of GDP. The industry also supports around 2,900 direct and indirect jobs in Antigua & Barbuda.

“This contribution far exceeds that of other modes of transportation, yet the aviation industry continues to be a prime target for additional revenue," IATA said. "We therefore urge the Government to refrain from additional cost increases to the industry, halt the Act and seek structured involvement of the airline community in the financial and strategic planning of the airport."

See related stories:

New Travel Tax Casts Wider Net


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40 Comments In This Article   

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@Tenman

#40 Airline Man » 2012-03-20 18:19

You are almost correct the St Kitts taxes are my calc was off:
Airport Enhancement Facilitation fee...12.00
PFC...10.00
Environmental Levy...3.00
Airport Charge...22.00
Tatal USD $47.00
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Airline Man

RE: IATA Against New Airport Tax

#39 Pellucid » 2012-03-20 01:20

The UK was criticized for raising airline taxes to help stem global warming, but it's OK for Antigua to raise airline taxes because the Stanford gravy train is over?
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Pellucid

Yes Sir Mr. Minister - Transparency & Accountability

#38 John French II » 2012-03-20 01:11

Notes From A Native Son Of The Rock. Quote:
The winners of tomorrow will deal proactively with chaos, will look at chaos per se as the source of market advantage, not as a problem to be got around. - Tom Peters.
The elctorate is demanding Leadership through involvement and by example. They, IATA and visitors to our shores expect Quality in all things great and small. Developing a Quality approach in this most important industry in your Ministry involves a Transformation in Political & Management thinking and behaviour at all levels. This can only be achieved by active involvement of your leadership to facilitate, reinforce and lead the changes so necessary for improvement in Transparency & Accountability.
Marketing is all about Relationship Building - with IATA, Visitors and Electorate. A word to the Wise: If you are not satisfying the self-interests of your clients - IATA, Visitors and Electorate, you are missing the point of Marketing. Quote:
Marketing is everything and everything is Marketing. Marketing is not a function but an all pervasive way of doing business - Harvard Business Review.
Heaven Help The Nation Of Antigua & Barbuda.
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John French II

@ Proud ABU Queen - Sympathy

#37 John French II » 2012-03-20 00:30

Notes From A Native Son Of The Rock. My Condolences.
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John French II

Too slow

#36 InteresteD » 2012-03-19 21:06

Hmmm.......I wonder why the personal attacks on the Minister again....I listened to an interview on Observer.....Maginle y quoted the actual figures as presented by the Ministry of Finance who has done the research ( and not on a LIAT ticket only).......also listened to Bernahd Ho who admitted that he wrote to IATA and gave them the information but he did not know what was actually passed or if it was passed at all! And this is what all you experts are attacking a Minister of Government over? And what is a reasonable time for a response to a communication? Is a two week period (was the Cruise Meetings not on last week in Miami?).
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InteresteD

Airline Person = Minister?

#35 Airline Fan » 2012-03-19 19:23

Judging from his responses I guess "Airline Person" is actually the Minister hard at work to make new policy...

How ignorant can one be?
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Airline Fan

RE: IATA Against New Airport Tax

#34 DadliMan » 2012-03-19 19:14

Thanks to ministers like Namba and Maginley, Dr BS's hands are effectively tied. How can he re-shuffle the Cabinet when the ministerial pool is comprised of back-bencher material? Maginley's claim to fame is that he could hit a tennis ball (and not even that well). With that background he was allowed to destroy the Ministry of Health. After failing miserably at Health, the best Dr BS could do is to put him in charge of our most important industry.

But realistically, where could you possibly place a Namba, a Maginley, a Chanlah without embarrasing yourself?
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DadliMan

airline man - roundtrip from anu to saint kitts

#33 tenman » 2012-03-19 18:57

Airline man help me on something: Looking at the Liat website I am seeing from St. Kitts to Antigua

Regular Fare (SKB to ANU)
Price Total: $ 103.10 USD
1 Adult: $ 26.00 USD
Total Taxes/Surchgs: $ 77.10 USD
Sales Tax: $ 2.60 USD
Passenger Facility Charge: $ 25.00 USD
Airport Development Tax: $ 22.00 USD
Airport Authority Taxes: $ 12.00 USD
Airport Passenger Taxes: $ 3.00 USD
Fuel Surcharge: $ 12.50 USD

Recognizing that I would have paid the PFC of 10 usd when I left from Antigua (amount is tax for St. Kitts), I then subtract the fuel charge, and the 25.00 PFC (for Antigua) and I am getting total taxes charged by St. Kitts of 49.60 USD (77.10 - (12.50 - Surcharge + 25.00 Antiguan PFC)+ 10.00 St. Kitts PFC) , where are you getting 62.00 USD? What am i missing?

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tenman

@Airline person

#32 Airline Man » 2012-03-19 18:19

Your rates are all of of whack. For example Dominica and St. Vincent have to fixed taxes added to the cost of a ticket and their sales tax are 7.5% and 5% respectively. Barbados fixed taxes is 31.50 and St Lucia is about 70.00. Here are the others all in USD:
Anguilla ......$20.00
grenada.....$47.00
St. Kitts.....$62.00
St Maarten..$45.00
Trinidad and Tobago....$24.00
ANTIGUA....$75.00 DRAFT PROPOSAL

And one you didn't add:
Santo Domingo...$83.00
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Airline Man

Hypocrites at large

#31 Lester Baldwin » 2012-03-19 17:08

This minister was on record telling the UK not to raise their airport charges but then a few months later he wan'ts to raise our own costs!!! I hope this was an IMF suggestion and that our cabinet is not so wicked and clueless. If this is not an IMF target then all I can say is Lord help us from these set of idiotic hypocrites!!!
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Lester Baldwin

Wake Up!!!

#30 The Wadadli Blogger » 2012-03-19 17:04

It seems that all these ministers are sleeping or they are too busy with their personel business to deal with the peoples business. When they come running to Caribarena to publish their press statements Caribarena shouls tell them they "no". They want to pick and choose which questions to answer so ya'll should pick and choose which statements to publish.
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The Wadadli Blogger

Proud ANU Queen

#29 tenman » 2012-03-19 16:32

Proud ANU Queen, condolences on the death of your father

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tenman

Airline person

#28 tenman » 2012-03-19 16:17

Airline person, can you also breakdown your 105.50 USD for St. Kitts because I am seeing a dep. tax of 100 EC see (www.thestkittsnevisobserver.com/2011/12/16/departure-tax.html) and 27.00 ec for the PFC (see www.thestkittsnevisobserver.com/2008/03/21/news15a.htm). Converting this to USD you get 43.70 USD (not including sales tax). Looking at a current price quote from liat (you can do it yourself using their website) for a round trip flight to St. Kitts from anu, the maximum in tax I can see being charged by the Kittician government is no more than 49.60 USD (subtracting out the Antiguan gov. 25.00 PFC and adding the Kittiian gov 10.00 PFC). Doing the same for a round trip flight from anu to Barbados it shows again that your $97.35 USD is highly inflated, its no more than 45 USD


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tenman

re: proud anu qween

#27 fnpsr » 2012-03-19 15:41

Pround Anu Qween, I am sorry to learn of the loss of your father. Please accept my condolences. May his sould rest in eternal peace.

"Let's fix the little things before we attemp to fix the big things."
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fnpsr

Airline person

#26 tenman » 2012-03-19 14:08

Airline person would you care to break down the taxes where Antigua is concerned because I am at a loss at figuring where you got the 63.75 USD because based on the proposed change its 75.00 usd before we even apply the 10% sales tax mentioned by Airline man.

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tenman

Would Someone Please Stop The World And Let Me Get Off!!

#25 John French II » 2012-03-19 14:06

Notes From A Native Son Of The Rock. Hon Min just a suggestion. Respond to IATA acknowleging receipt of their letter and if you wish to add more courtesies state that your will be taking their concerns to Cabinet for advisement. Full Stop.
Not many moons ago, it was suggested that you may wish to leave the structure as is but Reengineer & Redesign the systems, processes, technologies and skills for collection of the Tax just as in BVI and SVG. Walking the Talk is important if you see the gathering storm clouds and wish to avoid the thunder and lightning. The counsel fell on deaf ears. You are now reaping the Whirlwind.
Here are JF's comments 10 Jan 2012.Quote:
The reclamation (of Airport Lands)will be realized through a Statutory Body APUA. The ABAA is a Statutory Body. They have access to Funds & Capital. Give them the opportunity to be run as a succesful (Non Profit) enterprise with the profits to be returned to capital development of a modern thriving airport. The examples around the world are legion. Gatwick Airport is owned and managed by a Black Enterprise.
They can lease the Lands from the GoAB.
Heaven Help The Nation Antigua & Barbuda
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John French II

@ InteresteD

#24 Froggy » 2012-03-19 13:23

I would think that the increase would have not been made without the Minister's input! He should have been on top of that question! He must have had an opinion towards this increase? It may well have been justified, but by the Minister stating: "no comment" speaks volumes about him!

Time for us to stop making excuses for incompetence!
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Froggy

IATA?

#23 Airline person » 2012-03-19 13:04

Whatba travesty ........Minister Maginley should sue them and Caribarena.......her e are the facts.......Anguilla ......$97.35, Barbados ...$82.12, Dominica ...$71.50, grenada.....$76.65, St. Kitts.....$105.50, St. Lucia....$97.00, St Maarten..$94.25, St.Vincent ...62.45,.....Trinid ad and Tobago....$69.25.... .ANTIGUA....$63.75. These are all US$ and represent the total travel taxes per passenger going through airports in the region! So IATA got there information from some unknown source and not the Ministry of Finance or the Ministry of Tourism!,,,, pity so many experts jumped on this without knowing the actual figures!!!,!
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Airline person

un interested maginley

#22 me » 2012-03-19 12:22

How could we know the facts if the minister has no comment as a response??? :-x
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me

Slow down people

#21 InteresteD » 2012-03-19 12:07

A letter dated February 27 th.......on the 19 th of March the Minister has not responded and all manner of he'll is thrown down. Does he not have a right to review the position made by IATA before a response is made? What If IATA is wrong with there information? it's just automatic? And the Minister could not make any such tax decision by himself? Do you know the actual facts.......
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InteresteD

Third World Squalor

#20 Reader » 2012-03-19 11:41

What makes this government think they can just raise the fee's on the traveling public and everyone will be okay with it. What's so special about Antigua that would make travelers want to spend the additional monies to visit? Is it the poop running in the streets, and everywhere else it seems. Or maybe it's the wonderful stench of downtown St. Johns? Possibly the terrible customer service delivered consistently to residents and visitors alike? Or it has to be all of the mangy, flea ridden dogs that roam the island freely.

Come on now!
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Reader

Question for IATA via Caribarena

#19 Airline Man » 2012-03-19 11:40

they made reference ib the letter of taxes weel over US$75.00 are they now including the sales tax of 10% whis is not part of the US $75.00. Of course the 10% is applied to the base fare for those who may not be aware and the US 75.00 is a fixed cost regardless of the fare.
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Airline Man

Airport Taxes

#18 Proud ANU Queen » 2012-03-19 11:15

I travelled to ANU to bury my Father two weeks ago with three members of my family on Delta. The tickets were $535 each for a total of $2,140. When taxes & fees were added, our total was $2499.00. Additionally, Delta does not allow one bag free, so we paid $140.00 each way for bags. Add Departure Tax $28 US for three = $84. I had my ANU Passport so I paid $20 US. Total for this trip $2,883. Isn't this crazy?
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Proud ANU Queen

IATA against new tax

#17 Airline Man » 2012-03-19 10:50

When this issue was raised before 1 I gave the proposed rate and 2 I said can we then complain with the UK on the APD. It took IATA to say it for some to react. What is strange though is Helen on the West the name used by John French charges a little over US$70.00 and I am wondering if IATA spoke to them.

Then Antigua increase though is exorbitant and seriously needs review because it means a US$30.00 or EC$81.00 increase to Antiguans for each trip. Not to mention the possible implications to tourism.

There was a first reading of this bill in parliament a few weeks ago will be interresting to see what direction the GOAB takes.
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Airline Man

Now is the time?

#16 Andy » 2012-03-19 10:46

When will we get these lunatics out of office????
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Andy

@InteresteD

#15 Dig It » 2012-03-19 10:33

My friend, perhaps you should have "Consulted" your MP before he made such "draconian" proposed charges, and, do more harm to our tourism industry! Since you like to be in "denial," and run and called the MP's office to verify the facts, please see the attached letter to him! Now, do us ALL a favor, and, tell the Joker to respond to IATA and Caribarena!
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Dig It

Time to make the difficult decisions Mr. PM

#14 PLM » 2012-03-19 10:03

The UPP is partially correct; we need an Airport Administration Charge on all flights originating in Jamaica, Guyana, or St. Vincent. Apart from that, this makes no sense economically or politically. The UPP made the correct decision to reintroduce the income tax, and now they must follow-up with a significant reduction in the wage bill before any new taxes are proposed.
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PLM

just had to point this out

#13 tenman » 2012-03-19 09:09

Quote:
It would be prudent for the airport to show full transparency in the use of those funds prior to raising the burden to passengers once more,” IATA said.
Wow this is exactly what the citizens of this country have been saying about the government taxes. Hidden and no audits, while the government continues to dig deeper in our pockets. You then have ministers of government smilingly tell us that they like nice things.

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tenman

Foolish move

#12 Antigua Bill » 2012-03-19 09:03

Are you sure that the UPP have become a puppet for the Chinese? Given the way they are behaving it seems that way to me. They depend so heavily on the Chinese for everything that won't be surprising.
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Antigua Bill

NO comment as usual!

#11 Dig It » 2012-03-19 08:39

I am glad to see the IATA is against the new airpoprt tax, which, I agree is "excessive!" This new tax not only affects the airlines but travellers as well, and, many passengers have had enough "financial burden" just to cough-up monies to buy an airline ticket! Why are "exceeding" regional averages or even consider raising taxes on travellers? If the "Beach is just the beginning" why are we making our "tourism product" more "vulnerable" to further loses or gains in profits? It is time the MP AKA "The Joker" takes our only "bread and **er" seriously, or get out of "good governance!" Taxing travellers and locals "mercilessly" is not the way to grow the economy! The MP and his cronies needs to get off where the Sun-don't-Shine and find ways to fish for an entire village!
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Dig It

RE: IATA Against New Airport Tax

#10 DadliMan » 2012-03-19 08:32

Clearly, just like everything else, this inept administration made the announcement that IATA would collect the taxes without any consultation with IATA. Had there been some consultation, they would have spared themselves this embar**ment.

The unprofessionalism of this administration has grown to epic proportions. They ignore communications as they please, without so much as a letter of acknowledgement. This administration is a study in how NOT to govern. It seems as if the administration has taken on the do-nothing persona of it leader Dr BS.

Note to Dr BS and his team of arrogant, overconfident failures: professional courtesy dictates that you should respond to communications in a timely manner - even if it is to acknowledge receipt.
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DadliMan

re: morris

#9 fnpsr » 2012-03-19 08:27

Morris well said! I believe that powers that be have taken the "brain" of "brainstorm" and have created a "perfect storm".

"Let's fix the little things before we attempt to fix the big things."
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fnpsr

KIR

#8 Truth be Told » 2012-03-19 08:20

No comment Mr. Maginley? Really?

Mr. Maginley and by extention the rest of the Caribbean leaders who cry down Englad for implementing their 'Air Passenger Duty charge' should leave Englad alone and seize telling Englad how it's "going to increase the cost of travel and negatively impact travellers and international tourism."
That is bold-face hyprocrisy for criticizing the England government for implement a tax to raise revenue, albeit on airfare, when our own Leaders in the Caribbean are sneaking in extra taxes on airfare through the back-door. Why don't we as a Carribean People seek to drastically reduce the taxes on our regional air-fare before telling some other nation how to administer theirs?
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Truth be Told

Kudos to

#7 fnpsr » 2012-03-19 08:09

Kudos to IATA!! Somebody has to reign in this animal with an insatiable appetite for taxes.

I wrote previously, Quote:
The sad thing about this is that you are about to kill your Tourism product. When the average person realizes that an airline ticket to get to Antigua is costing them an arm and a leg, they will just go somewhere else.
IATA, writes in part, Quote:
plans for yet another major increase in costs to passengers will seriously damage the ability of airlines serving Antigua & Barbuda to operate in a profitable manner, and will surpass any revenue growth for the airport and will damage the health of Antigua & Barbuda’s economy and tourism sector.

IATA also states that, Quote:
It would be prudent for the airport to show full transparency in the use of those funds prior to raising the burden to passengers once more.
The politicos can pimp some of the people some of the time but they cannot pimp all the people all the time.

“Let’s fix the little things before we attempt to fix the big things.”
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fnpsr

RE: IATA Against New Airport Tax

#6 Morris » 2012-03-19 07:26

Like I said in a prior post, people will be thing twice about coming to ANU. They wll ponder whether or not the end justifies the means. It is high time that our leaders brainstorm and come up with the best possible solutions, because it does not appear that much thought (if any) was given to the cascading effects that this would have such as:
* decrease in numbers coming to ANU
* decrease in revenue for businesses
* lower occupancy rate at hotels
* lay-offs from the tourism stakeholders
* higher unemployment
* increase in crimes out of frustration
These are just some of the ramifications. However, I am sure that there is a plan by the gov't to fix the problem: tax baby tax, tax baby tax...
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Morris

Waste of Time

#5 Hood » 2012-03-19 07:16

Come on IATA...you wasting your time with this Minister!
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Hood

RE: IATA Against New Airport Tax

#4 I » 2012-03-19 06:21

Antiguans need to get rid of this government. These guys are killing the country and destroying every goo thing about it. What tax next????
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I

RE: IATA Against New Airport Tax

#3 piky head » 2012-03-19 05:39

St.Maarten's Princess Juliana International Airport- Rates in US


PASSENGER CHARGES

Passenger Screening 9.35
Airport Departure Fee (International) 30.00
Airport Departure Fee (Domestic) 10.00
Transfer Fee 5.00
Airport Improvement Fee 9.00 5.00


AERONAUTICAL CHARGES
Aircraft Landing Fee
(based on MTOW - minimum 3 tons) 5.30 per MTOW
Air Traffic Control (ATC) Fee 5.70 per ton or part thereof
Aircraft Parking Fee 0.56 per MTOW for 24 hours
first 2 hours free
Overtime Fee 55.56 per hour or part thereof
Runway Lights Fees 10.28
after sunset or before sunrise
Push Back Fee 63.00 wide body aircraft
35.00 other aircraft
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piky head

RE: IATA Against New Airport Tax

#2 Well said IATA!! » 2012-03-19 05:12

Any idiot with an ounce of common sense would have known that this move is tantamount to shooting yourself in the foot!! It is NOT the responsibility of the traveling community to pick up from where the ** left off. Incompetence runs rampant!
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Well said IATA!!

OOPS

#1 OO7 » 2012-03-19 05:03

OOPS. NO PROBLEM IATA. IN ANTIGUA WE HAVE A INDEFINITELY PAUSE **ON. OR EVEN BETTER A REVERSE GEAR. OK UPP START BACK PEDDLEBACKING.
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OO7

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