Concerns about LIAT’s financial state raised on local talk show
BVI News Staff - Friday, February 3rd, 2012 at 9:25 AM
Doug Wheatley...pondered whether any local subsidy has being considered for the financially ailing LIAT.
Host of Speak Out BVI Douglas Wheatley mentioned the financial plight of regional airline LIAT on his January 31 program and openly pondered whether any local subsidy has being considered for the financially ailing airline.
Wheatley’s comment was in relation to his recap of the statement made by St Vincent and the Grenadines Prime Minister and Chairman of LIAT’s shareholder governments, Dr. Ralph Gonsalves, at a press conference in Barbados on January 31.
At that press conference, Dr. Gonsalves, who is also the CARICOM spokesperson on air transportation, announced that LIAT lost US$46 million last year. Gonsalves also mentioned that the airline was considering legal action against Caribbean Airlines (CAL) and how it is competing on LIAT’s routes.
“They pay just US$50 a barrel for aviation fuel, we pay $110, $120. Obviously that can’t be correct. I have no problem with CAL coming on our routes, none whatsoever. The competition is fine but the competition has to be one a level playing field,” Gonsalves said.
In Barbados, Gonsalves met with leaders from Antigua and Barbuda and Barbados, Freundel Stuart and Baldwin Spencer, respectively, as well as the LIAT board and management, and unions representing the airline’s workers.
It was stated that the Trinidad government, who is the owner of CAL, will be informed of the views that their airline is competing heavily with the struggling LIAT.
“It is our contention that such unfair competition is subversive of the Revised Treaty of Chaguaramas and also of the Common Air Services Agreement in CARICOM and we must address this,” Gonsalves said.
He also announced that LIAT is looking at ways to manage its situation for the moment. These plans include cutting unprofitable routes, ridding of unnecessary staff and working with the unions.
Copyright 2012 BVI News, Alliance News Limited. All Rights Reserved. This material may not be published, broadcast, rewritten or distributed.
7 Comments
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Why are we concerned about LIAT’s financial affiars. Liat ain’t no asset to the BVI.
LIAT always late, over price and always full
and every year in the RED.
Lost $46 million dollars last year, it does not add up. Some thing is wrong and always was.
Let me understand this. American Eagle cut flights here drastically, and the parent AMR is in bankruptcy. Liat is having financial troubles. And we want to extend the runway at great cost so the big guys can land? If there is not enough regular “year long” traffic to support the small regional airlines how will there be for the big ones?
Trellis really now take a look at ur comment. The small carriers having problems should we just sit and wait till they get their act together? Have you really though this through? extending the runway is the best move yet? Do you want BVi to keep waiting and depending on the smaller carriers to hold us at gunpoint? That’s exactly what they are doing now!
Why in this day and age do they have unnecessary staff? we hear every few months LIAT are doing cost cutting measures, they need to sort themselves out or open the field for a new carrier.
That’s what competition does, all LIAT have to do is do better. LIAT has been on the airways for years and let a Johnny come lately trouble them.
So why is their fuel cheaper? I thought Gonsalves was Chavez boy, why cant he get cheaper fuel?
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