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Posted: Wednesday 5 July, 2017 at 10:19 AM

CARICOM Chair: Too much politics involved in LIAT

Prime Minister the Rt. Hon. Dr. Keith Mitchell
By: Jermine Abel, SKNVibes.com

    BASSETERRE, St. Kitts - CHAIRMAN of CARICOM, Grenada’s Prime Minister the Rt. Hon. Dr. Keith Mitchell believes that too much politics is being played out when it comes to cash-strapped regional airline LIAT. 

     

    The troubled regional entity has been at the center of much controversy in recent times, including problems with the Pilots Association and management choosing to drop routes deemed not profitable.
     
    In his address at the opening of the 38th Regular Meeting of CARICOM Heads of Government in St. Georges, Grenada last evening (Jul. 4), Dr. Mitchell chastised regional heads for their continued support to international airlines through subsidies and their neglect to LIAT.

    “Colleagues, I have long held the belief that too much political presence on the board of airlines, such as LIAT, is not helpful to its proper management and efficiency. LIAT’s sustainability would have benefited properly if it had run more as a private sector operation.”

    He continued: “Governments then subsidized flights to given destinations or routes that are in the best interest of their respective countries. We do so now with international airlines, we could do so with LIAT.”

    Dr. Mitchell questioned how LIAT could strive when overnight the regional carrier cancelled flights to one of their “lucrative route”, Grenada to Barbados, without any consultation with citizens or government.

    “Overnight, the decision clearly could not have been based on economics and viability. Colleagues, we have to do better as a region,” he added.

    One of the more vocal regional heads, Dr. Mitchell opined that transportation is the life blood of the integration process as he pointed to weak domestic and intra-regional air travel. 

    He also stated that low service competition and high travel costs all culminate in the reality that Caribbean countries connect more easily to destinations outside of the region.

    Regional travellers have complained for years about the growing cost to travel within CARICOM member states and many of them had chosen to travel to the United States and Canada for vacation rather than within the Caribbean.

    “Colleagues, as an integral aspect of our push in addressing the issue of air connectivity, it must include reducing the cost of air travel to rejuvenate intra-regional travel.

    ‘It would represent a significant instalment to the regional integration account if Heads would collectively agree to reduce airline ticket taxes, as well as other fees which are attached to the cost of intra-regional air travel,” PM Mitchell said.

    The leaders are now engaging in a two-day closed-door meeting where they are expected to discuss a number of critical issues.
     
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