Operators of Jamaica’s two largest airports have pushed back against reports suggesting that the Fair Trading Commission (FTC) is probing airfare disparities between Norman Manley International Airport (NMIA) in Kingston and Sangster International Airport (SIA) in Montego Bay, insisting that they neither set ticket prices nor control how airlines structure routes.

The FTC has also stepped forward to clarify its role, stating categorically that it is not investigating airfare differences between the two airports.

“In keeping with its mandate under the Fair Competition Act (FCA), the FTC does not investigate price disparities in any market. Rather, the FTC’s focus is on ensuring that markets operate in a manner that is free from anti-competitive conduct,” executive director of the FTC David Miller told the Jamaica Observer on Friday in an emailed response to queries.

“Accordingly, the FTC does not commence enforcement proceedings into price disparities unless there is evidence to suggest that such disparities may result from anti-competitive conduct,” he continued.

The commission’s involvement, according to Miller, has been limited to reviewing draft commercial concession agreements related to a request for proposal (RFP) issued by NMIA’s operator, PAC Kingston Airport Limited (PACKAL). The aim, he said, is to ensure that those agreements are compliant with the Fair Competition Act.

“This engagement is unrelated to airfare pricing or any investigation into passenger or airline charges,” he said.

The clarification follows widespread speculation, triggered in part by a recent news article, that the FTC had launched a review into airfare gaps between Kingston and Montego Bay. The report, which cited concerns from domestic travellers about routinely higher ticket prices out of the capital, implied that the FTC had taken a formal interest in the matter.

But Sitara English-Byfield, CEO of PACKAL, which operates NMIA under a public-private partnership, dismissed the claim as a misunderstanding.

“We are not aware of the Fair Trading Commission reviewing any fees at NMIA,” she told the Business Observer in a recent interview. “They reached out solely regarding the RFP commercial space…and we have been fully cooperative on that.”

She explained that regulated airport fees, such as those levied on passengers and airlines, fall squarely under the oversight of the Jamaica Civil Aviation Authority (JCAA), and not the airport operator.

“We cannot amend a fee, whether up or down, without JCAA approval,” English-Byfield said. “They set a cap for a five-year period, and we are allowed to operate within that cap – but never above it.”

As for the airfares themselves, English-Byfield said they are determined entirely by the airlines based on route, structure, capacity, demand and competition.

“In our experience, for routes where both airports offer service, the fares are competitive. It’s not always the case that Montego Bay is cheaper,” she said. “What tends to happen is that Montego Bay has more direct flights, and travellers often prefer to avoid connections. It’s more convenience than cost.”

That view is echoed by Shane Munroe, CEO of MBJ Airports, the private operator of Sangster International Airport.

“There are a lot of moving parts in the aviation industry, but Montego Bay benefits from volume,” he explained. “Almost every major carrier out of the United States and Canada flies here and many airlines even start their international journey here in Montego Bay… that is the strength of Jamaica and the strength of our travel product.”

He added that the growth of Montego Bay’s airlift is not limited to traditional destinations.

“We’ve added new routes to Peru, Panama and other destinations that are now seeing interest from Jamaicans. The route mix is expanding and when you have more offerings available for passengers, then normally you will see more competitiveness. That competitiveness helps to determine where the airfares are, and that benefits the traveller.”

While the FTC is not investigating fares, it says it remains attentive to broader market dynamics that influence pricing in the aviation sector. According to Miller, the Commission may weigh in through its competition advocacy role, especially if there are structural barriers that prevent new players from entering the market or if policy distortions affect pricing fairness.

The FTC provides input at the policy and planning stages, where necessary, Miller said, adding that while the FTC is aware of the concerns raised regarding airfare disparities between SIA and NMIA, the Commission also recognises that several factors, such as airline scheduling, demand patterns, and operational costs, amongst other things, may influence pricing.

“Although the FTC is not currently conducting a study on this matter, it remains attentive to market developments. Should evidence emerge suggesting that these pricing patterns are influenced by market and regulatory conditions, the FTC is prepared to explore the issue as part of its mandate to promote competition,” he said.