BASSETERRE, St. Kitts - Businesses, individuals and just about anyone can now have their goods and items shipped faster and with less hassle throughout the Caribbean region with the launch of a dedicated LIAT Air Cargo Service.
The launch took place yesterday (Feb. 1) at the Hilton Hotel in Barbados and the new service is available to the airline’s 22 regional destinations. According to LIAT’s Marketing Manager Derrick Frederick, it is the cheapest when compared with international air cargo rates.
Speaking to members of the regional media, invited guests and a number of top company officials who conduct business with LIAT, Chairman of the Board of Directors Dr. Jean Holder said the airline has served the region for more than 54 years. He indicated that LIT would be celebrating its 55th anniversary in October 2011.
Dr. Holder said that since its establishment, LIAT has continued to provide the region with an unparalleled network of passenger connections, linking the various language groups and nationalities of the Caribbean. He pointed out that this network extends from the Dominican Republic in the north to Curacao in the southwest and Guyana in South America.
“…as recently demonstrated in St. Lucia, following the passage of Hurricane Tomas, as a regional corporate citizen, LIAT has traditionally provided lifeline and other services during the periods of national emergency beyond the capability or interest of other airline operators,” Dr. Holder said.
The LIAT Chairman noted that his company’s schedule is aimed at facilitating same-day travel among the various destinations which they serve as well as connecting to international carriers operating from the various gateways in the region.
Dr. Holder said that while the geography and demography of the Eastern Caribbean present challenges for airfreight in terms of high operational costs and limited market size, he remains confident that building on LIAT’s extensive regional network of destinations, its long history in operating into most of these destinations, and its international connections, the airline’s venture into a fully dedicated freighter service is a sustainable step towards further realising the potential of regional air transport.
“Consequently, in 2009, the LIAT Board agreed to the proposal from the airline’s management for conversion of an aircraft for the purpose of establishing a dedicated airfreight service. …LIAT’s strategy is to partner with regional manufacturers, farmers, traders, and with national export and trade development agencies to promote regional commerce. We also expect to partner with international airfreight carriers to provide the type of two-way trade cargo feed required in an increasingly cost competitive industry with high fixed and operating costs,” he asserted.
Meanwhile, Director of Cargo and Quikpak Wilbur Edwards pointed out that the company has a dedicated freighter aircraft; a Dash 8-100 series aircraft which he said was fully converted into a freighter version aircraft with a 7 500-pound capacity.
“This is a launch of our new and efficient way of doing cargo business by offering a booked service on the freighter aircraft, of selling charters and expertly linking our regular line flights with the freighter on thin routes to provide a high quality cargo service to our 22 destinations. This is the launch of a cargo service that is swift, dependable and supported by our cargo website www.liatcargo.com,” he said.
He declared that his company has once again lived up to its true promise and delivered for the Caribbean people exactly what they have been requesting for many years. This, he stressed, is their own regional dedicated freighter service.
“I first did a feasibility study of a freighter aircraft in September 2003 and presented the paper to the executive. Even though it was recognised that cargo revenues can make the difference between an airline making a profit or not, those were times when LIAT was at its lowest ebb and a breakeven position was so far off that the company has no choice but to focus on its core business and try to bolster that. The cost of the cargo conversion kit alone was prohibitive, even though it was less than a hundred thousand US dollars. The dedicated freighter aircraft was therefore put on the shelf,” Edwards explained.
Edwards noted that in 2008, LIAT revisited the project and a refreshed business case was presented. He said the prognosis looked good but noted that the guidelines from shareholders directed them to operate profitably and on a strict commercial basis in order to sustain them. He further noted that they were concerned about the period it would take to build up the business to full strength and if they would be losses in the process.
“There were many arguments put on the table which created a sort of stalemate, if you will, so we engaged the services of an independent consultant to do an evaluation of our business case. This was done and the assessment of the consultant, in a nutshell, was as follows: it is recognised that LIAT holds the ideal opportunity for the implementation of an intra-Caribbean freighter operation. The governments of the Caribbean are aggressively promoting improved trade between the islands of the sub-region. In order for this to be achieved there will be need for increased opportunities of cargo uplift so that the exporters could improve their markets both regionally and internationally while at the same time fulfilling the mandate given to them by the governments,” he explained.
Edwards pointed out that after conducting these studies, they were presented to the company’s acting CEO shortly after he took up the position in 2009. He said the CEO worked at the OECS Secretariat for number of years, where he saw quite a few studies on the introduction of a regional freighter.
“Being a true Caribbean ambassador, he was very supportive and was impressed that we had done so much work internally. He wasted no time in studying all the papers that were produced and, in a short while, after clearance at the executive table, I was asked to make a presentation to the Board. The Bboard approved it and so did the shareholder governments and history is now being made,” he declared.
The Director of Cargo and QuikPak told the gathering that they first tested the air on September 28, 2010 with what he termed a dedicated cargo operation. He said the operation was labelled a proving flight, adding that it operated among Antigua/Barbuda/St. Vincent/Trinidad/Antigua with a 16 570-pound cargo.
“We then had a soft launch on October 5 and rather quietly we started to build up our dedicated freighter service and put integrity into the operation. We have done so quite successfully and to a standard that we are now fully satisfied that the time is right to blow our trumpet loudly and announce that we are ready to provide the finest cargo service in the Caribbean. We have found the perfect formula in working our dedicated freighter in tandem with the line flights to operate efficiently and cost effectively,” he reiterated.
Acting CEO of LIAT Brian Challenger stated that while the transport of various forms of cargo is nothing new to LIAT, yesterday’s launch signalled an important milestone in the evolution of the company’s air cargo business as they move towards the formal introduction of an air dedicated exclusively to the movement of air cargo throughout the region as well as into Guyana in South America.
“Prior to the start of this service, persons and businesses wishing to move air freight through our islands were largely dependent on the availability of space on the company’s scheduled passenger planes to get their products from point A to point B. This was particularly risky for perishables such as agricultural produce which obviously have a finite shelf life, particularly in the tropical heat of the Eastern Caribbean,” he said.
Providing an example to what his statement meant, Challenger said while residing in St. Lucia, he and his wife had ventured into the business of moving high-value agricultural produce from there to the US Virgin Islands but had to discontinue because of limited freight capacity.
“This was an extremely stressful and challenging enterprise with many shipments being aborted due to lack of adequate air freight capacity. Hopefully, the launch off our new service will dramatically reduce such stresses for regional exporters and importers and will instead serve as a springboard for the development and expansion of productive export capacity in our region,” he explained.
Challenger further explained that the new LIAT cargo service would strive to be a modern and efficient cargo operation while utilising available information technology resources to enable computerised tracking of goods and other functions.
