Expect a LIAT delegation to Port-of-Spain anytime soon for discussions aimed at deepening the relationship between the Antigua-based regional carrier and Trinidad and Tobago-owned Caribbean Airlines.
Speaking to the Caribbean Media Corporation (CMC) in Barbados recently, LIAT’s acting chief executive officer Brian Challenger said principals of both airlines as well as government representatives had already held discussions which could be of mutual benefit to both carriers.
Officials of both airlines met in Barbados in January with the main agenda item being closer cooperation and although there was no hint as to sale or merger, an official joint statement issued following the meeting described it as “frank” and “cordial”.
Another meeting between the leaders of the three shareholder governments – Baldwin Spencer of Antigua and Barbuda, David Thompson of Barbados and Dr Ralph Gonsalves of St Vincent and the Grenadines — was scheduled for May 9.
Last year, former Prime Minister Patrick Manning said after the deal with Air Jamaica had been consummated, his government would be looking at entering negotiations with LIAT in an effort to setting the stage for the creation of one regional carrier comprising CAL, Air Jamaica, LIAT and possibly Bahamas Air.
However, it is not known whether the new administration led by Prime Minister Kamla Persad- Bissessar is interested in buying out or merging with LIAT or even in the larger picture of a single regional airline concept.
But last April Antigua and Barbuda’s Tourism Minister John Maginley said “LIAT was nor for sale,” although he was not averse to having discussions with CAL regarding greater co-operation between the two carriers.
At that time, CAL had not concluded negotiations regarding the takeover of several Air Jamaica routes, which prompted Maginley to say LIAT was a lot stronger than Air Jamaica. He further pointed out that LIAT had made a profit in 2009 for the first time in many years and was expected to at least break even this year.
A few months ago, there was talk in the region about Caribbean Airlines seeking to purchase 25 new turbo prop aircraft. The decision was whether it should be to stick with the Dash-8s or switch to ATRs, which have a larger passenger cabin. According to airline sources the order would have satisfied the needs of the Trinidad-Tobago Airbridge, LIAT’s inter-island services and even a Port-of-Spain-Kingston service.
“Caribbean Airlines has a lot of capital, so if you need to renew the fleet Caribbean Airlines has funding to do that. They have a lot of money sitting around that can be used so there are some benefits to look at a joint venture, but right now the heads are not too much in favour of a sale,” Maginley said in the April interview.
Since LIAT has little alternative but to renew its aging fleet of 18 Dash-8 turboprop aircraft, it would seem that Maginley is hoping that a joint venture with CAL would enable LIAT to benefit from any aircraft purchases made by CAL. But he said if that was done, there would have to be some consideration as to how “we fulfill your philosophy while fulfilling our mandate.”
He also described CAL’s mandate as being very different from that of LIAT since CAL’s was to build an efficient airline and just make money, while LIAT’s was to ensure there was regional interconnection.
But it seems Challenger is not prepared to wait for the development of any deeper relationship with CAL since he said he wanted to get to Port-of-Spain soon to meet with Tourism Minister Dr Rupert Griffith to lay out the plans and perspectives of LIAT.
Challenger said he wanted to explain to the Trinidad minister ways in which LIAT was planning to enhance its marketing efforts in so far as the tourism sector in the Caribbean was concerned and also what inputs Caribbean Airlines could have into the discussions.
In response, Dr Griffith told Business Day on Monday:
“I have not heard from Mr Challenger.”
During a launch of his book Don’t Burin Our Bridges: The Case for Owning Airlines in mid-July, LIAT chairman Jean Holder said he had devoted an entire chapter of the book exploring possible forms of co-operation between LIAT and Caribbean Airlines.
In another chapter, Holder said his book encompassed his most “up-to-date” views on the terms and conditions needed to successfully operate a single regional airline.
Holder believes a regional carrier was essential in the context of the integration movement.
At that same function, former Barbados Prime Minister Owen Arthur said the region could only address issues related to LIAT if it was understood that the region had paid a heavy price for insular nationalism.
Source: Newsday