GUYANA AIRWAYS CORPORATION GUYANA AIRWAYS CORPQftATJQN
/\.tlt!U6LBEPQRT j.976,• ,. · '· Cda, Prime "ini1S1r
I am -pl'ealled to p.. l'l't the, Annual Report, trft��ich, .. ,' '-< ie attached th� AuOitad Accoun�±.nd Statietic:a for th•·y.hZ" anded December 31, 1976, ..\-- ,. The year begen _on a nqt• ..of �trema optimiem. The previous yeai- witneaaBCil·;:·�-'*�d'y �-tf, of our operations and in keeping with our objectivwll<·,tt,. provide a aafe end reliable .service to our Hinterlend citizena, the Corporation, with the bec�ng of the Gavernment, placed en order f�r two (40 748 HeiW\ttr-Siddeley Aircreft for delivery in 1977. At that time the 1i1Ve-l of our Domeetic operations wee in exceea of the capacity of the Airline'• fla,t and �o fulfil the c::llirMtnde of the aarvice pr;vataly owned ,trcraft had to be chartered. Our maalf'I cuatomera ware the Upper' '-' Me.zaruni Road Project (U.M.R.P.) and the Upper Mazarunl DevelopZlent Authority (u.M.D.A.). Towarde the and of the year, regrattebly, both Authorities began· e planned reduction cf their ectivitiaa, which continued in 1977. Although our perfo:r;,nance in all aectora ehowad en improvement aver 1975 l•val, the drc� in demand for chertared aervicaa and the raduction of our load factor on the scheduled earvicea began ta et'Ode our op.timi!lm• At the eame time the viability of the International freight wee being w1ekened by sizable reductions in export loada of tropical fish end exotic birds end enimela to North America. So significant wee thie cargo to the vitality of the service, that revenue declined by eome $500,000 during thie year end instead of a profit the International oparetione made e loea of 116,000. - 2 -
Thie turn around will force the Corporation to re-examine the usefulness of the operations to our Country and Guyana Airweya Corporation, end unlsas it can braak-aven, we shall have to seriously coneider removing tha Georgetown/Miami service.
In summary, the Airline continued its valuable contri bution to the Hinterland by flying nearly BOO additional houre. The necessity to meintain this high level of performence is the sola reason for tha existence of the Corporation and the advent of new aircraft typee into tha fleet will snhance the �omfort of our passengers snd their confidence in the equipment of the Corporation. We need however to match these unpute with batter ground facilities end in the new ysar greater emphasis muet be placed in improving the accommodation st Timahri for Staff and for etorags and handling of cargo. The Board of Directors recognise that tha viability of the Airline hinges eubstantislly on the paca of economic activity in the Hinterland mainly, and in Guyana to a lesser extent. Wa heve detected certain lapses inths co-ordination amoung Government Aganciea responsible for co-ordinating services in the Hinterland, with the result that the economy doee not benefit fully from the development programmes in some areae. In particular, ie the sbeence of forward planning for tha movement of pariahables from certain areas, resulting in wide apread waste of edible commodities, not to mention freight for the airline. We would like to urge on Government tha eetablishment of eome authority which would be charged with the taak of developing sitea in the Hinterland ss holiday outlets. - 3 -
A noticeable decline in our load is two wey peesenger trefficJ if such traffic were to develop the utilisation of the 748 aircraft could be improved cansiderebly.
D.I. Yenkene Executive Cheirman - 4 -
FOREWARD
Guyana Airways Corporation was established on lat September, 1973, by Order No. 71 of 1963, made under the Public Corporation's Ordinance No. 23 of 1962, taking over the asseta and liebilitiee from British Guiana Airways (Govt.). The Objective of Guyana Airways Corporation ia to carry out aafe and regular air transportation services within the country and between Guyana and other countries, and to ensure that such aervicee are operated at reasonable prices. This airline servae as an essential communicetiona link for the various areas of development and settle ment of people throughout the interior. In September 1971, under tha Public Corporations Amendment
Act No:14 of 1971, Guyana Airways, along with other Corporstiona, came under the direction of Guystac, Tha Vice President of Guystac became the Corporation's Chairman and the General Manager, ita Daputy Chairman, In March 1976, an Executive Chairman, Public Utilities and Sarvicas, which included Guyana Airways, was appointed and who replaced tha Vice President, Guystac as Chairman, The Airline is divided into six departments, viz. Engineering, Operations, Ground Services, Commercial, Finance and Accounts and Management • Apart from its own domsstic passenger and cargo services, the Corporation operates an international scheduled freighter service to Miami in the U.S.A., Manaua in Brazil and through other Caricom Countries. It alao acts ae General Salas Agent and/or Henfling Agents for a numbar of International Airlines - British Airways, B.W.I.A., SLM/ALM, Air France, Air Cubana and Pan Am. � 5 -
GUYANA AIRWAYS CORPORATION ANNUAL REPORT 1976
Submitted herewith is the Annual Report of Guyana Airways Corporation far the year 1976.
Activities in the various departments were as fallowe:- ENGINEERING 2. Because of the increase in the number of aircraft maintainmd by the Corporation - 2B aa againat 21 during the pre vious year - and the necessity for the required maintenance support for the new 748 aircraft early in the year, a series of employees were sent on training courses for periods of six weeks to six months. The Workshop Superintendent and the Avionics and Communications Superintendent attended training courses in Britain while five Line Engineers attended maintenance and radio course st the Cessna Aircraft Company, Wichita, Kansas, U.S.A.
3. Preparations were mada during the latter months of the year for the arrival of the 748 eircraft. There was need for the provision of increased storage space for the spares and updeting of the Technical Records and Planning sections to provide improved facilities for the monitoring of meintenancs costs.
4. For the greater part of the year one DC-3 waa grounded. for C of A and in the latter stage, had to undergo several engine changes. Meintenence difficulties were generally experienced with t�e piston engine aircraft types - DC-3, and Caribous - and in respect of the Caribous in particular, the Corporation experienced great difficulties in the acquisition of spares. Similar problems wars experienced with the Twin O�tar. - 6 -
OPERATIONS s. At the end of 1976, the Pilots establishment stood at twenty-including one part-time Captain. Two pilots had resigned during the year. There were fifteen ground staff, including one who was attending U.G. fulltime.
6. The total flying hours done in 1976 aa against that of 1975 indicated an improvement of 367:39 hours. The C-46 did approxi mately 642:02 flying hours while the International freighter, 1,769:03 block hours. The DC-3, under the registration BR-GEC, ceased opera tions from July. The Electra was used on an adhac basis from the beginning of the year but from July it was used exclusively for the freighter service. Operations under the Guyana Registration BR-GEW started on 16th October, 1976.
7. There were various factors which precluded greater incraasea for the Corporation in its aperatiane during this year. Some of theae were:- (a} Bad weather, which affected loading, maintenance and naviqatian of the aircraft. (b} Flooding caused many airfields ta be closed. (c) Maintenance problems. (d) Shortage of trained personnel.
GROUND SERVICES Timehri 8. Operations at this paint were not without their problems such as cancellation of flights, late departurzs, late arrivals and ea many others which were occasioned by factore such as un-favour able weather, maintenance, passenger irregularities, the Principals• inability to maintain prompt arrivals and ta same extent, ateff problems. The lack �f adequate handling equipment contributed largely to ground handling problems.
' - 7 -
Ogle 9. Operations at this station we're re::tively satie factory, despite the inadequacies of the Terminal building which included limited bond space, pex.handling facilities - space and convenience for which funds were not available. 10. In an effort to further cut costs and to have better financial control, it was decided to introduce a shift system at this station.
11. Traffic at this location reached an all time high pro portion, due to the operation of the U.M.D.A. and U.M.R.P. projects and this necessitated an all round increase in staff.
12, Ramg, Ruimvsldt This section catered for the receiving and delivering of all export, import and domestic cargo and was also the base far the Transport, Clailils and Cargo Sales Offices.
13. The Import Cargo section handled about 90,000 consign menta during the year while domestic and export cargo increaeed over 1975. Thero was great need for larger cargo space for import cargo especially in view of the fact that GAC is virtually General Sales and/or Handling Agent for all airlines operating into Guyana.
14. 1,380 flights oparated from Ogle and 1,935 out of Timehri for the year. 5st out below is the amount of traffic in and out of Ogle and Timehri:- Pax. t\§il. Cargo Ogle 32,220 38,793 Lbs. 1,615,650 Lbs. Timehri 25,056 15,303 Lbs. 14,174,507 Lbs • - 8 -
15. Interior Stations There aro nineteen such stations through which this Corporation is able to distribute its goods and eervices to varying parts of the Interior. 16. With the acquisition of the Avro 748 Aircraft, quite a few of the more important strips have ta be generally up-graded by way of widening, lengthening and resurfacing so as to meet required operational standards for this more sophisticated and rather expen sive Aircraft.
17. Generally at these locations, the operation wae up to an appreciable standard despite lack of facilities.
1 1 18. Appendix A (figures 1, 2 and 3) seta out tha comparison of Domestic traffic - passenger, cargo and mail - carried over the years 1972 - 1976. CO�MERC!Ab 19. This department captured 43% of the total International passenger Sales for the year - an increase of 2% over 1975. V§. Agency Sales - GAC Travel Agencies 19!6 and 1915 Market Travel Market Carri;r Year GAC Salss §hare ! Ag!ii;nc;it �hare l! B.W. I .A. 1976 5,040,000 42 7,DS7,000 58 1975 3,748,68S 40 s,673,280 60
Br. Airways 1976 3,261,000 43 4,310,000 57 1975 2,698,281 42 3, 78S,41S 58 Other 1976 8S3,000 48 914,000 52 121s 147,618 51 1,0,328 42 TOTAL: 1976 9,1S4,000 43 12,281,000 57 1915 7,124,644 41 10,u2,02J 52
(See appendix B - Figure 4) - 9 -
The overall 2� increase in sales over the total project for 1976, can be.attributed to a higher volume of traffic because of - l) The movement of a large number of Guyanese atudente for training overseas. 2) The return home for Guyanese students' tour of duty with National Service.
District Offices
International Passenger Salas Increaae/Dacreaee l;;!i.;t;Ei;t Projee:t:ion Actual ActuaJ, l! New Amaterdam $ 202,184 $263,063 + $ 60,879 + 30 Roaehell 374, 753 544, 705 + 179,952 + 48 Linden 294,157 195,807 98,350 - 33
20. Tha increase of 30% and 48% in New Amsterdam and Rosehall Offices was dua to parsistant movement of families to reside in North America ae well ae the general 1� mid Atlantic fare increase.
21. The total deficit experienced at Linden for this year resulted from loss of Guybau's buainees to Cacique Travel Service. (see appendix B - figure 5) - 10 -
MANAGEMENT 22. On 22nd March 1976, Cde. G.E. Perry, was eeconded from the Guyana Telecommunication Corporation to act as General Manager.
23. During the year negotiations ware concluded with the CCWU end LAEA Unions for increased salaries and conditions of service. Agreements were signed for a two year period, i.s. to the end of 1977. Negotiations were aleo carried out with a new Association representing senior non-technical staff.
24. With the exception of three "G.o Slows", which ware quickly remedied, the industrial relations climate was healthy. An Aest. Personnel Officer was appointed on 1st November, 1976.
25. Th ere were 549 employees at the end of the yea r as against 4B4 at the end of 1975 •
26. Operational Statistics for the year ar e attached.
Training Overseas 27. Twenty-two Reservations/Ground Services employees attended various training courses at British Airways during the year. Nine pilots attended Hawker Siddsley Courses in Britain and three did their ALTA Course in the USA. Twenty-four courses of training were attanded by engineers in the UK, USA, Canada and the Caribbean which included HS748, Helicopter, Maintenance, Twin Otter Ground School and A/C Radio Maintenance training.
Local 28. Training courses and seminars for various levels of etaff were held throughout the year at Critchlow Labour College, Kuru Kuru Co-operative College, Guyana Rice Board and Guyana Airways Corpora tion Board Room • - 11 -
FINANCE� ACCOUNTS 29. The tote! revenue earned in 1976 was 912,714,929 which was sn increase of $1,453,347 or 12.9% over 1975. Expenditures for the year was $12,353,120 which was en increase of Sl,716,190 or 16.1% over 1975. The surplus on 1976 operations amounted to S361,B0 9 compared with the 1975 surplus of $624,652, e dscrsesa of S262,B43 or 42.DB� over 1975. {see appendix C figures 6 end 7).
Domestic Operations 3D. Revenue from Dcrn.eetic oper ations during 1976 wee S6,464,250 en increase of $1,308,694 or 25.4% aver revenue earned in 1975. Expenditure excluding provision for taxation end obao leacence and daprecietion was S 5,791,984 en increase of $1,486,762 or 34.5� over 1975. Surplus before provision for taxation and abeo lescence and drpreciation waa $672,266 e .dscraaae of S!5B,068 or 19i.
31. Intarnatigpal Ogarationa The level of activity in International operations dropped in 1976. Revenue earned was $3,721,588 compared with 14,201,555 in 1975, o'dacreoaa of $479,967 or 11.4�. Expenditure amounted to S3,737, B2B compared with $3,542,134 in 1975, en increase of $195,694 or 5.5�. There was s deficit of Sl6,24D in International Operationa in 1976, compared with a aurplua of $659,421 in 1975, a decrease of 1675,661 or 1D2.46%. 32. Asensv Operations Revenue on Agency operations increaaed in 1976 appreciably to $2,529,D9D compared with $1,933,784 in 1975, an increase cf $595,306 or 30.78%. Expenditure also increased fr om $1,107,232 in 1975 to $1,381,585 in 1976. The quantity of increase was $274,353 or 24.B�. Surplus on Agency Opsratione in 1976 was Sl,147,505 com persd with $826,552 in 1975, an increase of $320,953 or 38.B�. - 12 -
33 .. Overheads Again overheads increased from $658,820 in 1975 to $908,930 in 1976. The actual increase was $205,118 or 37.96i. 34. Flying Hours Domestic flying hours again increased. In 1976, B,435 hours were recorded compared with 7,629 in 1975, an increase of 806 houra or 10.56i. International flying hours dropped drama ticall y to 1,777 in 1976 from 2,277 in 1975. Actual decrease was 500 houre or 22�, eome of which was due to the uae of more productive - larger, fester Electra - aircraft. 35. Outstanding Debts A lot of effort was made in 1976 to regularise the position of the outetanding debts, end it is hoped that still greater effort will be made in 1977. The balance on the debtors accounts taking into account credite thereon were ea follows:- (e) Government debtore $509,603.96 (b) Gensral Debtors 612,065.24 (c) Interline 639,226.60 Sl,960,995.82
The 1975 figures ware: (a) Government debtors iasa,1n2.s6 (b) General Oebtora 764,524.37 (c) Interline 560,672.62 $2,203,299.55
36. The increeee and/or decrease in emount and psrcentages areas follows:- Increaae (Decrease) Percentage (a) Government Debtors ($364,416.56) (40.6) (b) General Debtors ( 152,439.13) (19,9) (c) Interline 256,553.96 44,5) ($242,303.73 (11 ) -13-
37. Bank Balances The Corporation was again abla to carry on its operation without the uae of borrowed funds. The surplua funds were invested throughout the year and yielded interest to the tune of $62,348.18. The balancea nt 31st December 1976 were:-
Current account - Georgetown $ 796,623.36 Fixed deposits - Georgetown 1,456,848.95 Current Account Miami 178,700,BJ $2,432,173.14
38, All funds in Georgetown were held at the Guyana National Co-operative Bank • • 14 •
GUYANA AIRWAYS CORPORATION MEMBERS OF THE BOARD AT DECEMBER 1976
Cde. D.I. Yankena,A.A. - Exeeuti\le Chai.rman Cde,; G.E. Perry General Maneger(ag) Spence Cd.a. G.,N. As.et. to the General Manager Cde. A. Halls - Finaneial Controller Cde� M.G. Chan-A-Sue - Chief Pilot Loy Cde;, G, Chief Engineer Cde. J, Lambert - Commercial Manager Cde. E. Wbo-Ming Seeretary Cde • C, Merriman Member Cde. J.R. Vieire,A.A. Member Cde. C.H. DaSilve, FCIS Member - 15 -
GUYANA AIRWAYS CORPORATION OPERATIONAL STATISTICS
l 9 7 6
BLOCK HOURS fLOWrJ ,!3Y 1iIRCRAfT_TYPE_ SCHEDULE SPEC!Ab �HAf!.I.ER. ,lOTAJ.
1. OC-3 1,4,!5 89 807 2,341 2, CARIBGU 386 51� 1,003 1,904 3, TWIN OTTER 1,743 649 676 3,068 4. C-46 737 80 B17 TOTAL: 3,574 l,99C 2,566 8,130
MILEAGE FLOWN BY ....a.!B&RAFT TYPE 1 • DC-3 209,525 12,905 117,015 339,445 2, CARIBOU 55,970 74,675 145,435 276,DBO 244,020 3. TWIN OTTER 90,860 94,640 429,526 4, C-46 141,400 16,000 163,400
TOTAL: 509,515 325,840 373,090 1,203,445
48,069 2,408 PASSENGERS CARRIED 11,378 61,855 PASScNGER MILES FLOWN 7,210,35D SEAT MILES AVAILABLE 12,565,400 PASSENGER LOAD FACTOR 57,4%
TOTAL WEIGHT 10,648,425 CARRI ED 7,818,014 7,897,694 26,364,133 (a) 397,320 PAX & BAGGAGE 7,931,385 1,877,370 10,206,015 (b) EXCESS BAGGAGE 171,260 171,260 ( C) CARGO 2,492,212 7,420,266 6,019,446 15,931,924 (d) '5!,568 MAIL 426 B7B 54,874 AVAILABLE TON MILES 1,139,197 1,169,081 962,699 3,270,977 758,524 TON MILES FLOWN 6S6,040 636,369 2,050,933 WEIGHT LOAD FACTOR 66.6% 56.1% 66.1% 62.7% APPENDIX A FIGURE 1 DOMESTIC OPERATION PAX TRAFFIC 1972 1976 NOOF PAX 70 (THOUSANDSI
60
50 ..
30
20
,o
1972 1973 1974 1975 1976
FIGURE 2 VOLUME OF CARGO CARGO TRAFFIC 1972 - 1976 !MN LBS.I
18.0
15.9 16.0
14.0
12.0
10.0
8.8
6.0
4.0
2.0
1972 1973 1974 1975 1976 APPENDIX A {cont'd)
FIGURE 3
MAIL TRAFFIC 1972-1976
MAIL 10001m.1
7()
55
50 ..
30
10
1972 1973 1974 1975 1976 APPENDIX B
PAX SALES FIGURE 4 N ($M .) GA C VS. TRAVEL AGENTS 16.0 1972- 1976
14.0
12.0 12.4
-GA C 10» TRAVEL AGENTS 10.1 9.2
8.0 7.2 8.8
6.0 5.1
4.5 4.6
4.0 3.3
2.0
0 1972 1973 1974 1975 1978
FIGURE 5 SALES DISTRICT OFFICE SALES 1$0001 ACTUAL VS. PROJECTION 1976
566
500 D ACTUAL 400 375 PROJECTION
300 294 263
200 196
100
0 ROSEHALL LINDEN NEW AMSTERDAM APPENDIX C FINANCIAL RESULTS FIGURE 6 OPERATING REVENUE 1972 - 1976
MILLIONS OF DOLLARS 14.0 12.7
12.0
10.0
8.0
6.0
4.0
2.0
1972 1973 1974 1975 1976
FIGURE 7 OPERATING SURPLUS/DEFICIT(-)
THOUSANDS OF DOLLARS
'900
826 OPERATING SURPLUS • 600
'300
0
122 -300
-600
-900
1972 1973 1974 1975 1976 APPENDIX C (cont'd.) FIGURE 8
PERCENTAGE Of TOTAL DEBT BY DEBTORS 1976 X 1975
Gov·T GOV'T
GENERAL GENERAL
INTERLINE INTERLINE
1976 1975
FIGURE 9 OUTSTANDING DEBTS 1972 -1976 THOUSANDS OF DOLLARS
2400
2203 2200
2000
1800
1600
1400
1200
1000
800 ...
400
200
1972 1973 1974 1975 1976 THOMAS, &TOLL, VIAS & CO.
ACCOUNT;NTS
5 America Street, Georgetown, Guyana.
11th November, 1977 •
REP