PJIAE’s response to aviation challenges
With the airlines facing financial problems the Princess Juliana International Airport has prepared a situation analysis which outlines the challenges we are faced with as airport. The global economy is facing record prices for both crude oil and refined jet fuel. Many airlines as a result are experiencing major financial problems and as a result have announced cut backs of fleet capacity, increased their ticket fees, and introduced new service fees to make up for loss revenues.
PJIAEâ??s situation review assesses the potential impact of these developments for St. Maarten as a preferred destination and outlines PJIAEâ??s strategic response. The review provides a thorough analysis of the announced cuts in flights operating at PJIA with a view of developing an appropriate response.
In view of the potential loss of business, the need to secure our revenue base and considering our strategic responsibility PJIAE recognizes the need as aviation partners to provide relief not only to airlines operating at the airport but also the concessionaires (all tenants). Following an evaluation of our financial obligations, and after due analysis we have decided to temporarily waive the planned 2008 rental increase which would have been effective July 1, 2008. In addition, the planned increase for fuel throughput charges effective January 1, 2009 was also temporarily put on hold. The efforts taken were duly accepted by both airlines and concessionaires as the slow season approaches with its challenges.
Further to address these challenges PJIAE has also implemented measures to reduce its energy costs, and is developing plans aimed at increasing non-aeronautical revenues and at increasing air service development initiatives.
PJIAE President drs. Eugene Holiday, recently presented the its plans to its stakeholders e.g. the Island Government of St. Maarten, and the St. Maarten Hospitality & Trade Association (SHTA)