Caribbean Airlines has unfair competitive advantage – British Airways
A senior executive for British Airways has indicated that Caribbean Airlines Limited is benefiting from an unfair advantage of subsidized costs on its London – Caribbean route.
“Their prices reflect the fact that they are not paying in full for fuel. It is great for the consumer in the short term, but it’s not sustainable.
During the wide-ranging interview, the official also complained about the continuing negative impact that the high British airport passenger duty was having on its Caribbean business.
“The fuel cost on flying to the Caribbean is significant. It’s the main cost: almost 50 percent of the total. Airport passenger duty is big as well, given it has gone up 360 percent in the last six years. It is completely disproportionate. A family of four pays £324 (US$524.40) to fly to the Caribbean [in economy class], when flying to Miami it is £260 (US$421). The Caribbean is unfairly penalized.”
British Airways had planned growth to the region two years ago, they have had to scale back their plans as costs go up.