Trinidad & Tobago to inject $288 million to keep Caribbean Airlines flying

The Persad-Bissessar administration in Trinidad and Tobago has revealed that it will provide an estimated US$288 million into the financially troubled Caribbean Airlines during the period 2013-15.

According to Finance Minister Larry Howai, the carrier would remain in the red for at least 3 more years and that the administration would have to provide the funds up until 2017.

Howai also told legislators that a restructuring plan had been put in place that would lead to the gradual reduction of the subsidy given to the airline over the next 3 years.

Howai said most of the subsidy to Caribbean Airline was a result of the fuel subsidy estimated at US$50 million and the support for the Tobago air bridge valued at US$26 million.
The Finance Minister said that the airline had also incurred a loss on the Venezuela route due to the devaluation of the Bolivar currency.

“This was further impacted by the fact that you cannot get funds out of Venezuela at this point in time. So the monies to pay for that Venezuela route has been tied up and has further tightened the cash flows of Caribbean Airlines. That figure is US$45 million,” he said, adding that losses came as a result of the integration of Air Jamaica. -(CMC)