Dear Sir:
On Thursday 21st June 2007, one of the Barbados daily newspapers carried extracts of an interview with Mark Darby, the Chief Executive Officer of LIAT.
Mr Darby was asked, ‘Have Liat’s fares increased in the past few months? '
His reply was ‘On average Liat’s fares have increased by US$10 since October 2006 across the network’.
Why then are so many tourism industry and political leaders across the region complaining and voicing their concern over a dramatic drop in intra regional travel?
President of the Caribbean Hotel Association, Peter Odle, quoted the figure of a 22 per cent decline!
A well-known political pollster and talk show moderator, Peter Wickham, recently wrote about paying over US$535 for a day trip return from Barbados to St. Kitts.
As LIAT fares are based on one way rates, does that mean Mr Wickham only paid US$515 prior to October 2006?
We all know fuel costs have risen, but surely LIAT has at least partially addressed this issue by imposing a uniform US$10 fuel (and insurance) surcharge on every one way journey.
There can be no doubt of the negative economic effect these high airfares are having on the tourism industry across the region.
Compounding the reduction of intra regional travellers is also the reduction of US long stay visitors.
Again, according to Peter Odle, in some cases certain Caribbean destinations are seeing a 20 fall off in American arrivals.
Some Governments have expressed reservations about ploughing further taxpayer funds into LIAT, perhaps because they have not seen a creditable business plan.
Clearly, there seems to be other areas where costs can be reduced or curtailed. A ratio of over 62 employees per operating aircraft seems rather high as an example.
Does LIAT need all of its local ticketing offices when there are efficient travel agents, a consumer friendly website and call centre?
Adrian Loveridge |
