Caribbean Airlines has announced that in the coming weeks, the airline will apply temporary cost-cutting measures to support the recovery of the airline.
A press release from the airline states that reduced demand due to the global pandemic has presented significant challenges to Caribbean Airlines’ revenue and cash position and it must now take further steps to streamline expenses and manage its cash.
“After careful consideration, discussions with key stakeholders and with the support of the Board of Directors, the Company intends to implement certain temporary measures to cut costs and reduce overheads from October 15, 2020,” the release said.
According to the Company, some of the temporary measures include salary reductions for a period of eight (8) months from mid-October 2020 for those paid more than $7500 (TTD) per month, with reductions tiered to be higher for those on higher remuneration and temporary layoffs for approximately one third of employees for three (3) months, depending on their role and the current needs of the business.
The airline also plans to implement continued cost reductions wherever possible, including reducing contractors and temporary workers and allowances that are not relevant at this time.
The company has given the assurance that standard industrial relations criteria were used to select the employees who will be temporarily laid off.
It says the leadership team recognizes the impact of these measures on its employees and their dependents and has put systems in place to support those affected.
“Caribbean Airlines assures all stakeholders that its current operations are not impacted by the temporary layoffs – this includes our Cargo operations, the domestic Air Bridge between Trinidad and Tobago, the Kingston and Barbados based commercial services and special Government approved flights to/from Trinidad and Tobago,” the Company states in its release.
Caribbean Airlines made its inaugural flight into Dominica on the 20th of September 20 and it is expected that initially, the airline will fly into Dominica twice weekly on Saturday and Sunday, increasing to four times a week by mid-October.
So Caribbean Airlines waited until they in financial trouble to start flying into Dominica then? Here is how I see it:
Caribbean airlines heard Dominica has a money tree so their coming to Dominica is not much about service as much as they too coming for their portion. After all, they heard how Skerrit dumped millions into LIAT. They heard how Zampoli told a NY court that Asaria and Shehada walked away with US$30 million each, from the Kempinski hotel and Zampoli too wanted his 5%.
Caribbean airlines heard how Skerrit gave Trinidad lawyers millions to try to trap Linton for them. They heard how Skerrit giving Sir Byron almost half a million to help him stay in power.
They heard how Anthony Hayden is the one controlling the purse.
They heard how Skerrit building apartments all over and he paying cash!!! No damn cheque or LPO so nobody can track his money. So Caribbean airlines said they to want their portion and that’s why they flying into Dominica now.
The conclusion of my analysis after reading the full contents; is that this thing is simply LIAT reincarnated, and one my add “DOA;” ( that is simply dead on arrival!)
Last week while someone wrote a silly comment, celebrating the inaugural flight which brought a lone (single) passenger to Dominica.
I said this thing is worst than LIAT; before it get started we are reading about furlough, and reduction of cost!
This airline seems to be in no better shape than LIAT!
Dominica’s air travels problems are just beginning: notice their flight route involve only Barbados to Trinidad & Tobago.
Dominica will be serviced on “Saturdays and Sundays!
Interestingly they have not mentioned anything regarding a North bound rout from Dominica; so assuming one wish to travel from Dominica to Europe, or North America, they do not have any alternative than to travel South for a connecting flight, but what happen if one wish to travel to the islands in the North, and North Western islands…
Once upon a time, I used to give LIAT serious fire. But then, my eyes were opened to the truth with regards to the difficulties & costs associated with running inter-regional airlines. Plus I began to realize certain other things with LIAT which caused me to stop giving them so much pressure.
Folks, LIAT provided a critical service to the region which I doubt any other airline will be interested in doing as LIAT did. LIAT used to fly planes daily to many islands whether or not they had passenger loads to justify the expense of making that trip. Because of this service (rather strictly business mindset), they regularly required government bailouts/subsidies to make up for the losses. The service mindset however benefited folks in moving around the region ‘relatively easily’.
It’ll be extremely difficult to move forward in the Caribbean if a situation were to develop where one can get in or out of certain islands only on a certain day(s) at certain time(s).
Well you can’t expect a airline to fly from Barbados with 3 passengers to Dominica that won’t make no sense so if that’s the case the government will have to pay for the empty seats and that’s a fact. This is what is called between a rock and a hard place.
So the other day we understood that when West Indies cricket was in trouble they turned to the Laundromat in Dominica and now Caribbean just started service in Dominica and they coming with a load of financial problems. Are they also coming to bring their dirty clothes to the popular laundromat? I guess those lawyers from Trinidad Skerrit brought down to prosecute Linton must have told them about our laundromat and be referred them to the best Laundromat in the OECS
Signs of trouble already? No wonder they decided to come to Dominica to take the slack left by LIAT. Man don’t be surprised to hear Skerrit either gave them some bail out money or a very good offer, better than the $11 million he gave to LIAT.