LIAT drops unprofitable routes - Canouan and Tobago

LIAT has made true its word to drop non-profitable routes in places where governments have failed to offer market support for the airline.

CEO Brian Challenger confirmed that two islands have been taken off the airline's schedule because they were unprofitable. He identified them as Canouan and Tobago.

Challenger explained that both routes have been unprofitable. In the case of Canouan, Challenger said the load just did not justify regular flights, although the airline would consider special charters in the future.

On the Tobago route, Challenger said LIAT could not compete with Caribbean Airlines because of the huge levels of subsidy that airline receives from the Trinidad & Tobago government.

In August, chairman of the LIAT shareholder governments, Prime Minister Dr Ralph Gonsalves, of St Vincent and the Grenadines, announced the airline’s decision to drop non-profitable routes where governments have failed to offer marketing support to LIAT.

However, with Canouan part of St Vincent and the Grenadines, the decision seems to have been driven more by the market than any other concern.

Challenger said discussions are ongoing with other governments to secure assistance for LIAT. He hinted that if the assistance is not forthcoming, there will likely be other routes dropped.

Source:

 What's Up Caribbean