Published On: Wed, Dec 19th, 2012

Adaptation of fees at airport according to procedure set by BTPU and proceeds will be used to improve airport

WILLEMSTAD – The Government of Curacao approved the increase of Passenger Facility Charges and Landing fee.  Curaçao Airport Partners (CAP) as of December 1st introduced the new fees as approved by the government. In doing its request CAP followed proceedings set by the Bureau for Telecommunication and Post (BTPU) as transparent as requested.  This increase will partially be allocated to government entities to  strengthen the organizations, while the other part of the increase will be used by CAP to finance improvements at the airport as has been agreed with the government.

CAP took notice of some critical notes regarding the introduction of these adaptations and  would like to address these.

The last time these tariffs have been adapted was in 2006.  CAP, although the possibility existed contractually, didn't request an increase of the fees in 2009 because it took in consideration the difficult situation of the airlines at that time.  CAP, in requesting this adaptation, followed the procedures as set by BTPU, as the independent advisor to the government.  The BTPU subjected both the PFC as the Landing fee to a thorough scrutiny and concluded that the existing PFC and Landing fee by far do not cover the cost of operating the airport.  Furthermore the relevant operating cost of the government entities involved in aviation needed to be considered in the new tariffs.  Approximately 50% of the additional funds generated will go to these entities and to the Curacao Airport Holding(CAH).

CAP further agreed with the government in introducing a grace period of three months for passengers who have already paid the PFC when they bought their tickets prior to December 1st.

CAP since starting operating the Curaçao airport invested US$ 74 million in the airport and paid a total of US$ 38.9 million in fees to the Curaçao Airport Holding while making an average profit of US$ 0.9 million per year (with even two years making a loss.)

CAP however has, since the new major shareholders took over the company  in 2009, invested dearly in the airport.  Noteworthy are Nafl. 3.1 in fire crash-tenders, Nafl. 1.4 in new parking equipments, Nafl. 1.8 million in new apron busses (together with CAH), Nafl. 0.5 million in new air-conditioning in the departure hall and Nafl. 3.5 million in 2 new passenger boarding bridges. No airline or company/passenger has been additionally charged for the use of these investments.

CAP, together with its partners, has grown the traffic at our airport from 1.1 million passengers 8 years ago to 1.7 million passengers going through our airport today.

The proceeds generated by this adaptation will, besides making up for inflation and additional operational cost, be used by CAP to further invest in the airport.  CAP will in the coming years invest in among others Nafl.2.7 in replacement of the runway lights, Nafl. 21 million to resurface the runway & apron, Nafl. 0.3 million to refurbish the immigration hall, Nafl. 0.8 million to extend the security check-points for liquids-checks, Nafl. 0.4 million to replace chairs in the departure hall and Nafl. 3.5 million to extend the baggage-screening system

The additional funds generated with the adaptations of the Passenger Facility Charges and Landing fee will also make much needed investments at the  Dutch Caribbean Air-Navigation Service Provider (formerly NAATC) and the Curaçao Civil Aviation Authorities possible.  These improvements are dearly needed in order to elevate Curacao back to a Category 1 level, something beneficial to our aviation sector directly and also to  the economic development on the longer term.

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