Airlines to meet top officials over fee hike
Airlines have called for clear-the-air talks with the Transport Minister to end a cash row at the airport.
General managers from the six airlines serving Bermuda met yesterday to plan their fight against the "outrageous cost'' of the hi-tech computers.
They are being asked to pay $1.74 for each passenger checked in through the new CUTE computers.
But Transport Minister Dr. Ewart Brown said last night: "I think something will be worked out very shortly. There should be an announcement within the next 48 hours.'' Airport general manager Jack Gordon added: "We are continuing to review the whole programme and there may be some other ways to structure the payments.'' The Common User Terminal Equipment, to be installed in April, allows any airline to use each departure desk, so the airport can handle 30 percent more passengers.
Airport chiefs say the move saves airlines the cost of setting up their own equipment and renting the desk space.
They also believe the technology will reduce queuing times and improve other services for passengers.
But the airlines say it will cost up to a combined $1 million a year to use the new system -- and the charges will continue even after the equipment is paid for in 2002.
Delta's Jackie Zuill, chairman of the Board of Airline Representatives, said general managers met at the airport yesterday morning.
She described the cost to airlines as "outrageous and unaffordable''.
And she added last night: "We realise the contract has gone and we used the meetings to address the cost concerns. That was basically it.
"We haven't reached a decision about what to do but the airlines collectively share the same fears.
"But the fight continues and we are now seeking further meetings with Dr.
Brown and Mr. Gordon.'' American Airlines estimates the per-passenger cost of the CUTE system will increase their Bermuda operating budget by 25 percent.
And Shadow Transport Minister Erwin Adderley, who first looked at proposals to introduce the computers last year, questioned if there had been "sufficient consultation''.
But Mr. Gordon said: "Discussions with the carriers started as early as July 1997 and numerous meetings have been held since.
"In the absence of any progress, the Department of Airport Operations advised the carriers that they would be taking over this project to move it forward on January 13, 1998.'' It has also emerged that Bermuda is one of the world's cheapest international airports.
Even the charges for CUTE will mean airlines pay just $4.22 per passenger to use the terminal.
That compares with $26.61 at Chicago O'Hare, $23.26 at Philadelphia and $19.09 at Newark.
London's Gatwick airport costs airlines $13.37 per passenger during peak-times.
Off-peak terminal charges at Gatwick are still $5.28, while the cost is $11.53 per passenger at Houston, $9.51 at Boston's Logan International Airport, $7.34 at Baltimore, $7.25 at Detroit and $6.15 at Halifax, Nova Scotia.