Basseterre, St. Kitts- Two US air carriers with operations in St. Kitts have made the recent Moody’s rating list of big companies at high risk of failing due to the downward spiraling economic crisis.
Moody's Investors Service is among the world’s most respected and widely utilized sources for credit ratings, research and risk analysis and maintains offices in most of the world’s major financial centers.
US Airways and AMR- parent company of American Airlines were among 238 companies placed at the bottom of the most recently published Moody’s list that are experiencing reduced cash flow and high debt load.
Although the rating does not condemn a company to bankruptcy or market failure, the companies listed will most likely utilize cost-cutting measures to increase their chances of survival. Chief among these cost-reduction efforts will be job cuts, streamlining and closing divisions.
AA’s commencement of a daily service from Miami International Airport to St. Kitts’ Robert L. Bradshaw International Airport in November 2008 brought to nine the number flights by that carrier from the U.S. mainland whereas US Airways operates one flight weekly out of St. Kitts.
As the economic crunch in the US, the Federation’s largest tourist base, leads to a reduced number of visitors to the twin islands, Tourism stakeholders are closely monitoring these developments. AA currently employs approximately 50 locals and accounts for the majority of international flights into the Federation.
Minister of State with responsibility for Tourism Hon. Richard Skerritt was overseas at the time of publication and unavailable to answer questions relating to the future of the both airlines in the Federation.
