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News
April 13, 2007

New monopoly rules the sky

by Carlene Hunte-Daniel 3.APR.07

If you had to do any regional travel of late you would be left shocked at the astronomical cost of airline tickets. Some destinations costs have doubled, while the services rendered have not improved.

There was a lot of chatter about the benefits of the merging of LIAT and Caribbean Star. The consumers are yet to experience those benefits. Regional consumers are “bawling” about the exorbitant prices. However what can we do?{{more}} We have no choice really. Why? Once again another monopoly rules the sky. Monopolies operate at the expense of consumers. The bottom line is PROFIT and plenty of it.

Let us look at an estimate of prices before the merger and since the merger of LIAT and Caribbean Star. These are approximation from SVG to other Caribbean islands.

Before the Merger

Barbados – approximately $300
St. Lucia – $160-$290
Trinidad – $300-$400
Tobago$400

Since the Merger

Barbados – $500-$700 plus
St. Lucia – $500-$600 plus
Trinidad – $600-$700 plus
Tobago$900 plus

Children 2-11 years no longer pay half price, the cost is almost identical

These humongous prices are already creating negative implications on our regional tourism and travel agencies. Many have already seen a reduction in weekend travelers. No longer can you get away for the weekend. When you are finished paying for your tickets you don’t have any money to pay for your accommodation much less to enjoy yourself.

Many of the small hotels and guesthouses are the ones who benefit most from regional tourist. They are already feeling the squeeze.

Yes the airlines need to make a profit, however not at the sole expense of the consumers. I know that my Caribbean vacation will now be a dream for much longer. There is no way I will be traveling unless it is absolutely necessary or I win the lotto.

To sum up, the consumers are certainly not reaping the benefits from this alliance. The tickets are astronomical and the entire tourism industry will feel the pain with the decline in travelers. All we can do is grumble and bawl because another monopoly rules the sky.

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