LIAT CEO explains high costs of regional airfare

CEO of LIAT, Ian Brunton, has explained the airline’s position concerning the high cost of airfare in the region.

For years many in the Caribbean have complained that the high prices of LIAT’s tickets make it almost impossible for ordinary people to travel.

Brunton said regional taxes account for nearly 50 per cent of the cost of regional fares.

“We administer 66 taxes,” he said.

But that is not all for, according to Brunton, the airline has to deal with  thin and fragmented markets, limited economies of scale, and high fuel costs.

He pointed out that these are the main drivers for high regional airfares.

The LIAT CEO was speaking at a regional press conference in Antigua on Friday where he unveiled a new business plan which he said will turn around the fortunes of the cash-strapped airline.

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27 Comments

  1. investigater
    December 11, 2012

    you do not like to print names.but your antenna should go up when i make comments.

  2. investigater
    December 11, 2012

    dno is part of the cabal.why are you atfraid of skerrit?

  3. December 10, 2012

    have air dominica is that we neeed

    • Red Pen
      December 10, 2012

      Air Dominca? You would travel on that? Ha! I will will row a boat with the Kalinagos before that

  4. Cesare Bonventre
    December 10, 2012

    Obviously Dominicans have no clear idea what the government is or is not doing to improve things.

    On the one hand, the PM says he gave or is giving millions to Liat

    But on the other hand, Liat says the costs are high due DOMINICAN TAXATION of Liat flights to Dominica!!!!

    What? What? What?

  5. Shagi
    December 10, 2012

    LIAT lies , All Gov’ts Lie and since liat and the gov’t’s are one in the same they are all lying. LIAT haas been operating as a business for decades and if the can’t figure out how to deal with fluctuating travelers, fuel etc apparently they were never a business to begin with. From where i sit LIAT looks to be like the most visible money laundering system in Caribbean-People all of us will need to recalculate which trips are necessary and bite the bullet because anything short of a coup will not have any effect or worthwhile change when you are fighting nationalistic greed. I recently had a LIAT run in paying $400 usd for a return flight from ANU-DOM and back, that is a ridiculous figure and a physical embarrassment to us as a caribbean to the outside world. Nothing has been done in decades and nothing wil get done in decades. So we just have to deal and re evaluate whats important and whats not

  6. fooled again
    December 10, 2012

    Govt. would give $8,000,000.00 to LIAT. So said PM Skerritt. Was that another LIE? Has LIAT received any money from PM? Why? Why do those things happen? Is it that lies are now more readily believed than the TRUTH in our land and so the people continually are dubbed, lied to, not informed of critical issues by their Govt.? Is so we come?

    Are there more LIAT flights into Dominica at nights because of Night landing facilities at Melville Hall? is air access better, easier? Dominicans until you all realize that you are being taken for a ride to……. continue to be fooled.

  7. 4progress
    December 10, 2012

    It would interesting to see what that new business plan contains, because on the limiting factor mention by CEO how can he make LIAT profitable.

    Is our PM privy to discussion about this matter given we have invested $8M. Hhmmmmmm

  8. Anonymous
    December 10, 2012

    They better. $2000us to go to trinidad is too much

    • interested
      December 10, 2012

      While I agree fares are high, I do not think you have it correct on the fare to Trinidad. If I read correct, you stated US$2000. I just paid EC$1400 fare to Trinidad.

  9. birdie
    December 9, 2012

    i wish he would explain the shitty service too. Since we are paying for the service, i think it should be up to par and not Leave Island AnyTime type travel.

  10. On my own
    December 9, 2012

    You mean skerrit say He gave Lait money and up to now they haven’t received it when it left the treasury where it went to ?

  11. ya
    December 9, 2012

    crap!!

  12. british born dominic
    December 9, 2012

    that gonna affect us badly,no direct flight we r doom.

  13. british born dominic
    December 9, 2012

    build an international airport.

  14. joan
    December 9, 2012

    in whose acct. id the nbd wire the 4m in antigua .that acct. is now closed. dno please look into this.

    • investigater
      December 11, 2012

      did mr brunton receive 4.5 mil from skerrit.what does mr lartgue know about this.wait till the real story unfolds.dno i dare you to print this.

  15. Megatron
    December 9, 2012

    If you’re the only business on the block selling a product for the past 50 years, you overcharge customers, provide poor service and still cannot cut a profit (after 50 years)…. You probably shouldn’t be operating.
    Any other business would’ve long gone bankrupt.

  16. again
    December 9, 2012

    liat high cost is not about fuel which the ceo continue to lament on but what he is not saying is the tyoe of money that they recieve for pay in addition to all other bill that is placed on the company. liat is a fake it`s time for a new air line

  17. Dom
    December 9, 2012

    Duminicans will suffer, the rest of the caribbean has options. Trinidad has caribbean airlines. When they come here it makes me so proud just to see a 737 with the humming bird or the air jamaica insignia.

    Jet blue and others go st.lucia. As well as caribbean airlines. Barbados gets all the others, antigua, st.kitts. Yall stuck with Liat after AA pulls the plug:( lack of forsight politicians.

  18. December 9, 2012

    Caribbean Governments bring down the taxes so more people can travel and those who travel may travel even more frequently.
    Take another look at your taxing system. Even uneducated people know that “with quick sale there is less profit” but it creates more volume.

  19. And as Well
    December 9, 2012

    Also add in the salary of some of the useless ‘executives’ as well to account for a part of high prices.

  20. Day lite
    December 9, 2012

    Hug wash! if there was competition u would see I difference in price cost to fly it cost less from st thomas to florida our north carolina than st toms to antigua.

  21. dafriend
    December 9, 2012

    It is possibly true that a big part of the high prices is due to regional taxes. But it is also true that an other big part is the inefficiency of its aircraft, its management and its ground staff. Furthermore, no airline in this world could at all survive with the way this airline is managed – constant lateness, very poor customer service, constant lost luggage etc. etc.
    Lets just hope that the new business plan is not build on even higher fares. I am afraid it might be.

  22. strange
    December 9, 2012

    I cant stand that airline. Unprofessional and stupid. If u r traveling on an emergency and u boarded liat its likely that u will miss ur emergency and still buy the ticket twice.

  23. December 9, 2012

    Thin and fragmented markets, limited economies of scale, and high fuel costs. What a crack?

  24. Met Yo
    December 8, 2012

    Could’nt turn around BWIA/CAL is LIAT you can turn around? Good Luck!!!

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