ST JOHN’S, Antigua – Prime Minister Baldwin Spencer has called on Caribbean Community (CARICOM) governments to subsidise the regional airline, LIAT, in the same manner as they provide a significant amount of money to international airlines to service the region.
Antigua and Barbuda, Barbados and St. Vincent and the Grenadines are the three shareholders of the regional airline and Spencer said that some CARICOM countries, even those within the sub-regional organization of Eastern Caribbean States (OECS) do not provide any form of assistance to the airline even though they benefit tremendously from its operations.
“There are some member states of CARICOM and even the OECS who would have benefitted tremendously from the operations of LIAT and cannot do without LIAT, but yet they find it difficult to lend support to LIAT”
Spencer said when the international carriers, whom those countries “subsidise to a large extent” bring tourists to the region, it is still left to LIAT to bring them to islands where the routes are unprofitable.
“We believe that that arrangement should be in place for LIAT because LIAT has to travel and provide a service to some routes that are totally uneconomical but it has to be done.”
The Prime Minister said that the introduction of the region’s low cost carrier, REDjet, would also affect LIAT’’s operations, but insisted that he was not against competition.
“Cleary it will be competition and we are not necessarily against competition as we have always said. What we are against are predatory prices and mechanisms that will definitely affect LIATand its operations.
“But we are in a dynamic situation we will look at it but our interest is to ensure that LIAT is able to suruivive and provide the service
“We know that people are concerned about the cost of airfares and that is something that has been occupying the attention of LIAT,” Spencer said.
REDjet, which has now been given the green light to fly to Trinidad and Tobago and Jamaica in addition to Guyana, provides seats as low as US$9.99.
Spencer said that while his administration would consider any proposition made by REDjet, it remains committed to LIAT. (CMC)