(Antigua Sun) – Antigua and Barbuda’s Ambassador to Venezuela Joan Underwood believes that it would be a useful exercise for the principles of LIAT and the PetroCaribe initiative to discuss a possible solution to the airline’s high airfares.
While speaking on the Observer Radio, Underwood said that the logistics of using concessionary oil from Venezuela for LIAT is something that will require careful deliberation. She warned, however, that there is no guarantee there will be a workable solution.
“I do think it’s something that is worth further investigation,” Underwood said. “We would be most willing to engage the principles of LIAT in some preliminary discussions to see if in fact there is something that could be worked out.”
The inability by regional governments to subsidise the airline industry has been cited as among the reasons why LIAT has to maintain high fares.
Prime Minister of St Vincent & the Grenadines Dr Ralph Gonsalves recently said that the airline is faced with increasing expenditure including fuel, maintenance, airport charges as well as aircraft ownership costs.
Gonsalves explained that since 2007, the average base fare on the aircraft had increased by three per cent with 30 per cent accounting for taxes and other add-ons by the various airports in the region.
The fares paid by the public are a combination of the ticket price and various government taxes.
The airline had explained in a press release a few months ago that their base fares have increased by less than 20 per cent on most routes over an eight-year period, adding that while fares have increased on some routes, they have declined on others.
In 2003, in the wake of increasing fuel prices, LIAT introduced a US$5 fuel surcharge on all tickets. Since then, there have been various increases in the surcharge based on increases in fuel costs over the years.
Meanwhile, the airline is already on a hunt for a new Chief Executive Officer (CEO).
On 22 April, Brian Challenger was appointed the acting CEO following the sudden departure of Mark Darby from the company. LIAT said it was looking to hire a CEO on a three-year contract.
That person’s role will be to “implement the strategic goals and objectives of the Board of Directors of LIAT for leadership, management and administration of the company.
