Words fly over LIAT’s mode of operation to competition

The one thing that LIAT has done consistently in its 51 years of existence is lose money says Senator Allen Chastanet, St Lucia’s Minister of Tourism and Civil Aviation. He is also adamant that St Vincent and the Grenadines and the other major shareholders of the airline will not be receiving any more assistance from his country.{{more}}

LIAT, he says, should change its mode of operation in the face of competition or “get out of dodge.”

Speaking to SEARCHLIGHT at the Caribbean Hotel and Tourism Conference (CHTC) at the Hyatt Regency in Miami, Chastanet said that in the past LIAT has accused competing airlines of predatory pricing as a way to hide its own inefficiencies.

“As soon as competition comes their way they lower their prices, they put on additional capacity and when they lose money they go to the Governments and talk about predatory pricing,” Senator Chastanet said.

Senator Chastanet accused LIAT of adopting a wrong attitude in their operations; that it is their God given right to fly the Caribbean route. He said that his Government however believes that the right direction continues to be to create the environment where the private sector can participate.

“I cannot envision one airline being able to meet everybody’s needs in the region, I think what that does is limit creativity,” said Chastanet, who is also the Chairman of the Caribbean Tourism Organization.

He said that he is adamant that competition will keep people on their toes and remove all aspects of complacency.

However St Vincent and the Grenadines’ Prime Minister Dr Ralph Gonsalves along with his Barbadian and Antiguan counterpart have maintained a uniformed stance as they have called out region leaders, especially in the Organisation of Easter Caribbean States (OECS) to support the struggling airline.

Verbal jabbing has been taking place on both sides of the discussion as Grenada’s Prime Minister Keith Mitchell joining the chorus of those, like St Lucia, calling for an immediate lowering of the airfare by any means necessary, and even support for a rival airline.

Meanwhile, the LIAT flag-bearing governments have accused their colleagues of being ungrateful and unfair to LIAT.

Chastanet said that while his country may be at odds with other regional governments in regards to LIAT’s place in regional air- transportation it is willing to dialogue with all sides on the issue. He claims that CARICOM will be stronger for the diversification on issues.