Region urged to give more support to LIAT

Any private airline that seeks to rival LIAT will fail – just like the others that have attempted such a move over the years.

This was the bold prediction by Prime Minister Dr Ralph Gonsalves when he spoke last Saturday, May 26th at the end of the 22nd meeting of the Bureau of Heads of CARICOM here in St Vincent and the Grenadines.{{more}}

Dr Gonsalves said that the CARICOM leaders are concerned about the rising cost of air travel and have decided to ask the CARICOM Secretariat to consider engaging the services of an independent consultant to examine the issue.

This he said will allow the policy makers to have a better appreciation of the factors involved in this issue.

Dr Ralph Gonsalves, who is CARICOM’s lead prime minister on Air and maritime transportation said that this recommendation, which came out of the meeting of the Bureau will be submitted along with the other issues of transportation which arose out of the CARICOM Council of Trade and Economic Development (COTED) meeting held here from May 19th to 22nd.

He admitted that as a result of the public’s outcry on air travel, the Heads of Governments have different views on the matter. He however suggested that the major LIAT shareholder Governments (Antigua & Barbuda, St Vincent and the Grenadines and Barbados), who have been bearing the burden of the cost of keeping LIAT afloat know the real cost of the situation.

“Different leaders have different perspectives and some of the perspectives of some leaders may be informed by a greater factual matrix than others,” he said.

He said that LIAT has identified that US$80 million is needed for its restructuring, of which EC$25 million has been set aside for the payment of severances which will arise out of the restructuring.

He noted that all the cost attached to this restructuring process is being borne by the three share holder Governments.

“Because the fares have gone up and because the cost of air travel has gone up because of taxes and add-ons, some Governments which hitherto were not exercised on this issue have now become exercised because their citizens are demanding of them that this issue be addressed.”

He called on other regional governments to either provide finances or market support for LIAT. He said that Governments that are not providing financial assistance or market support to LIAT, but are providing the latter to non regional airlines are being unfair to LIAT.

“I would love to see more Governments come aboard with LIAT to help to bear the cost because we have been bearing it for six years and in effect these three Governments have been subsidizing other Governments,” he said.

He also lamented the lack of support by regional governments when meetings are called to discuss the issues of transportation.

He said that four attempts had been made in the last two years without success.

He said that at the last COTED meeting only six territories were represented hence the recommendations were being submitted to CARICOM as recommendations from an “informal meeting of COTED.” (KJ)