Business
LIAT struggles to survive
Leeward Islands Air Transport (LIAT) management remains hopeful that it will be able to break even this year.
The company’s major share holders, have revealed that the airlines’ survival is at risk due to the economic environment, escalating fuel prices, higher operating costs and a client base that has increasingly become more conservative in spending.
The assessment by Prime Ministers Dr. Ralph Gonsalves of St. Vincent and the Grenadines, Barbados’ Freundel Stuart, and Baldwin Spencer of Antigua and Barbuda came as the airline celebrates 55 years of operations.
In addition, the Chief Financial Officer Ms. Julie Refier-Jones during a press conference on Friday, acknowledged that the global economic downturn has taken a toll on the airline and the people who may use its services.
The airline must embrace change by minimizing costs, and reducing on operational inefficiencies, inorder to adapt to increased competition in the aviation industry.
In the meantime, the airline has followed through on a threat to drop non-profitable routes in places where governments have failed to offer market support for the airline. The routes are to Canouan and Tobago.
CEO Brian Challenger said the company has developed a recovery plan, which he hopes would allow it to break even this year, in spite of the challenges. LIAT re-launched a cargo freighter service earlier this year that would allow it to move cargo throughout its network as well as connecting to international freight carriers at Barbados and Antigua.
Additionally, the airline has commenced discussions with the Barbados Association of Retired Persons (BARP) to put together a programme that would enable members to access discounted travel.
Last month the airline announced plans for a travel and shopping incentive package for St Maarten.
LIAT and St Maarten authorities agreed on the package that would be aimed at lowering the cost of shopping in the Dutch country for regional travellers by offering reduced airfare, discounted shopping and options for discounts in other areas like car rentals, hotel accommodation and restaurants.
A similar package is being explored for Puerto Rico.
LIAT is jointly owned by the governments of Antigua and Barbuda, Barbados and St Vincent and the Grenadines.