AIRLINES WORLDWIDE ARE reporting record profits thanks in large measure to failing oil prices in recent times and the introduction of an assortment of user fees. The regional airline LIAT seems to have been excluded from this turn of good fortune.
The plunging jet fuel prices have been a blessing to consumers in some destinations who have had a drop in airfares, but disappointingly LIAT has not offered any sustained discount in prices. Yet, demand for seats is rising perhaps because there is in many instances no competition.
No one can deny that LIAT has been a critical factor in the provision of intra-regional travel, supporting the tourism sectors and commercial activity across Barbados and the Eastern Caribbean. This regional carrier may cause commuters stress, but most can’t do without it and recognise the important role it plays, given that few investors can successfully undertake the service it performs.
But the airline is bedevilled by serious problems, and this is not just wild perception. The high turnover of chief executive officers is worrisome as is the continuous dispute with its pilots. There are obvious disagreements between shareholders Barbados and Antigua and Barbuda while some other regional governments are decidedly against giving the airline needed financial support. Yes, LIAT must grapple with a tax burden on tickets that clearly needs to be rebalanced.
The airline cannot boast that it is among the most efficient and it is not so strategically positioned that it can respond quickly to issues ranging from volatile oil prices to the many vagaries which plague that industry. However, its leadership must have clear priorities to improve the financial performance, including paying down debt and offering better customer service.
The shareholders must not allow the occasion of celebration of its 60th anniversary to detract attention from some of the hard decisions LIAT must take if it is to become a viable entity. Not only should securing a new CEO be a priority, but more importantly the carrier must have the right structure, viable hubs and the correct fleet. Whether Barbados is to be the main hub with a hangar must be determined.
Political interference in the daily operations must be a thing of the past while LIAT must operate as is expected of any other private sector business. This is why those regional states wanting to benefit from its services but are adamant about withholding financial support should not benefit from the service. There must be a quid pro quo in this instance.
The glaring problems which affect the carrier must not be allowed to continue, otherwise the turbulence which it is encountering may result in a rough ride and its ultimate demise. The reality is that taxpayers of the shareholder countries cannot continuously support an airline that is not sustainable. Despite its importance, LIAT cannot be treated as a social service.
