In the Caribbean, dependence of tourism for economic development has made the stability of air connections to and from the United States and Europe a major cause for concern. Local ministers have identified foreign control of air routes as a major threat to regional development, since changes in routes and frequency of flights could interrupt the flow of tourist to particular islands. Charles Clifford, the Minister of Tourism for the Cayman Islands, said in January 2009 that “the prospect of having fewer flights and soaring airfares scared tourism ministers” throughout the region. “The one thing we identified as the most significant threat was air lift,” he added. In 2005, during a conference in Antigua on tourism development, Patrick Cozier, secretary general of the Caribbean Broadcasting Union, “called for the creation of a pan-Caribbean airline network that would have the capability of reaching all member nations of the Caribbean community without having any bias of nationality reflected in its service.” Given the global economic downturn, many fear that a decrease in the number of flights to the Caribbean could spell disaster for local economies.
In recent months, there has been some turmoil about airline service to the Caribbean. American Airlines, who has controlled air traffic to the region in the last two decades, is being challenged by JetBlue, who is aggressively pursuing routes in the Caribbean. Air Jamaica, the strongest local competitor, has been losing money and is for sale, in a bid for privatization that can strengthen its ability to provide local service at competitive prices. Yesterday, a possible merger was announced between Caribbean Airlines and regional airline LIAT, a move that could strengthen air communications between the various islands but could also threaten existing service. It is expected to take place once economic and political integration takes places between Trinidad & Tobago and the Organisation of Eastern Caribbean States (OECS). According to an article published in Trinidad’s Newsday, this initiative is outlined in the second volume of the TT-OECS integration initiative report, which states that with the establishment of a single economy and appropriate political integration, the governments of the OECS and TT “should create a single air space for the eight countries” and “adopt a unified air transportation policy.” The creation of a single air space means that bilateral air service agreements between individual countries would no longer apply.
Several airline officials have expressed concern about the merger and its potential significance for the region. “It was with enormous surprise that I learned yesterday our politicians have decided that Caribbean Airlines and LIAT are to be merged,” one official, who wishes to remain anonymous, said in a letter to the Antigua Sun. “Since Antigua is the most affected by the change in LIAT’s status, I seriously wonder at what is going on here.” Ralph Gonsalves, Prime Minister of St. Vincent and the Grenadines, has tried to assuage concerns, explaining that the idea is far from being materialized and that negotiations have been going on between the shareholder governments in respect to having functional co-operation.
I want to thank my son Gordon Gebert Jr. for the information on the significance of the merger (and the explanation of the ways in which changes in routes could threaten tourism in the region)—an area about which I know very little and he knows quite a bit. He provided the articles from which I quote above. The photo is also his, taken at the Vigie airport in Castries, St. Lucia.
For the story about the merger see http://www.stabroeknews.com/2009/news/regional/06/06/concerns-aired-over-possible-liat-caribbean-airlines-merger/
