BUSINESSMAN BERNIE WEATHERHEAD says Caribbean governments’ support of the airline LIAT (1974) Limited is one of the reasons why the lifespan of new carriers to the region is often short.
Speaking on the issue of REDjet’s inability to start flights from Barbados to Jamaica and Trinidad, Weatherhead said he was “100 per cent supportive of REDjet or any other carrier desirous of operating in the Caribbean”.
He complained: “It seems to me that whenever Barbados tries to start an airline, it comes under pressure from other parts of the Caribbean. Many of these services do not last because of some regional governments’ absolute support to LIAT, and now Trinidad’s absolute support to Caribbean Airlines.
“The people of the Caribbean have been taxed by their governments for the operations of LIAT and LIAT’s failures are being paid for by the people of the Caribbean,” Weatherhead said.
He added: “The term profitability is not known by LIAT because it has always relied heavily on governments’ support – including the waiver of landing fees.”
REDjet launched its low-cost service between Barbados and Guyana last month, with plans to fly to Trinidad and Jamaica.
However, while there has been no problem with the Barbados-Guyana route the plans for servicing the other destinations have been shelved after no clearance was received from those governments.
Weatherhead said in the Caribbean competition was necessary amongst carriers so as to keep airfares reasonable.
“We need competitive airfares in the Caribbean,” he asserted.
“There is always a challenge with the amount of tax which is added to airline tickets by governments. The taxes amount to about 67 per cent of the tickets’ total cost and this is sad as it acts as a deterrent to regional travel.”
He added, “Travel between the islands is one of the best ways to boost regional trade. When there are high airfares, there will be less travel and, likewise, less trade.”
He said he endorsed the activity of REDjet “not because I am in the retail travel business, but because if you want to move people from point A to point B, you need airlines”.
He added: “I am saddened to see governments sitting down and not dealing with the REDjet or airline issues facing the region. If there is a case against REDjet, it should be placed on the table and dealt with, not prolonged.”
Weatherhead, who has a number of travel agencies across the Caribbean, said it was not enough “for governments to say they are looking into the airline issue, but not doing anything about it”.
He said he had no financial interest in REDjet, but admitted that three years ago he told the owners of this carrier to make sure their operating certificates were in place before attempting to function in the Caribbean.
“I told them it would be difficult to operate in the Caribbean as the present regional carriers once threatened by competition will do everything possible to have their governments block any new entrant,” Weatherhead disclosed.
