The Nassau Airport Development Company (NAD) is proposing a $28-per-passenger airport improvement fee (AIF) for general aviation aircraft passengers arriving from international locations at Lynden Pindling International Airport (LPIA). The fee does not apply to international or domestic commercial carrier passengers.
NAD says its methodology and application of the fee are consistent with ICAO’s Policies on Charges for Airports and Air Navigation Systems. LPIA typically has a mix of 60 percent commercial traffic and 40 percent GA. NAD said that all GA operations at the airport accounted for an average of only 11 percent of total aeronautical revenue respectively in FY 2018, 2019 and 2020 (excluding NAD’s passenger facilities charge).
The proposed AIF fee will be used for planned investments at the airport, anticipated to amount to some $30 million for airside infrastructure improvements such as pavement surfaces and lighting, according to NAD.
In a statement, the company wrote: “Management continues to take steps to meet the NAD’s operating and required capital expenditure programs, fund debt service requirements, and comply with financial covenants as The Bahamas recovers from the current pandemic. The new fee allows GA to contribute more fairly towards NAD’s maintenance of a strong financial position. Further, the fee will help NAD meet its debt service and financial covenant obligations, and for NAD to fund important regulatory, security, maintenance, and capital projects to ensure efficient and safe airport operations.”