Regional airline LIAT is expected to record an EC$23 million loss at the end of this year but the company has unveiled a business plan which it says will reverse its fortunes in 2013.
Recently-appointed chief executive officer, Ian Brunton, told a regional news conference in Antigua on Friday that based on the plan, the airline is projecting a two percent profit for 2013.
“The projections show strong revenues and significant bottom line improvement. LIAT is projected to reverse its current losses and record a profit of EC$7 million in 2013 and by 2017, profits in excess of EC$40 million are projected,” Brunton said.
The airline has constantly been in the red. In 2010 it recorded a loss of EC$20.2 million, which increased to EC$43 million in 2011. Brunton said this was “largely driven by higher fuel costs combined with lower passenger volumes” combined with high maintenance and employee costs.
Brunton said the new business plan will provide a “road map to turn around the fortunes” of LIAT and “it indicates that a modest positive net profit margin of just over two per cent is attainable in 2013 and more than positive nine per cent in subsequent years”.
Some aspects of the plan include revamping the management structure and decision making process of LIAT, reviewing unprofitable routes which Brunton dubbed ‘social routes,’ a complete fleet change of 50-seat and larger turbo prop aircraft to service both the existing core markets and an expanded market based on new city pairs, the forging of closer working relationships with “one or more third tier commuter carriers…on a sell you fly basis,” and “alliance with one of more metropolitan air carriers will be sought in order to increase LIAT’s reach into new tourist and visiting friends and relatives markets.” Brunton disclosed.
Beg to differ the idea is just talk as usual
But under the same old stale mates as Managers,LIAT Will never be above board and maintain a excellent Service…
A total overhaul is required,HR is key to any upward Mobility in a Company, whereby Liat has some good Agents in between their Management Structure in Terms of having the More Qualified Minds are the issue…
Take a look at certain Managers throughout their Network, think hard and honest with their Output In terms of handling affairs bring new ideas..
They are just on the payroll stifling growth.
Because of the massive Political arrows in LIAT They will continue to be a Water Basket Company.
He is just another joker. Every ceo who comes to Liat always comes with a wealth of experience.
You see the smile on his face, hs is already looking at the books to change figures and say they made a profit next year so he can get a big commission. Putting money in Liat is like a bottomless pit, if they have not made a profit after 54 years think of it anyone with commonsense will they make now?
Thank you Ian for the good news.I hope the service will improve,also Dominica is scheduled to give you $8 million,I hope we will share in the profits if it becomes a reality.
Liat airfares are so expensive , Per mile it is cheaper to go to the states than to travel within the caribbean . I dont understand how a company can be so unprofitable yet the labour party government wants to inject some 8 million dollars into it .Every year they say the same thing “next year it will be more profitable” . If we had our international airport at least that 8 million could have gone into repaying the loan and we would be able to negotiate with other larger airlines . Presently, Liat have Dominicans by their b..ls just because the major share holders (PM friends) convinced the PM that Dominica cant afford the airport yet they further develop and extend theirs , They just wanted to have a monopoly for air transportation in Dominica simple put and Our Smart leaders could not figure that out , what a pity . By the way the more we wait the greater the cost will be to construct that airport if its ever built. but again election coming up so it will become top priority for them until they have all the votes they need to retain power. Mark my words
quick question: isn’t it cheaper to drive your car a further distance than a shorter distance on a per mile basis? you haven’t said anything revealing.
there isn’t one LIAT airfare that’s expensive. not one. don’t blame LIAT for government taxes
Exactly! Internatonal airports is what we are paying for!!! NOt saying part of problem is plain old incompetence but check whatr happens to your fares from what you see as the airfare then what you see as the total. Half of yourfare is fees givernment fees and taxes.
International airports that suck LIAT and other airlines dry as the governments struggle to pay for these airports! You want to know expensive airfare to Dominica? Wait till we add our own taxes and fees to pay for the airport you peple so want! Airfares will not go down they will go up as DA will never have economies of scale. If Barbados doesnt have it I can assure you DA never will. Just plain commen sense.
But go ahead Dominica. Beg for your “niggeritis” symbol of first world.
This more sounds like wishfull thinking.
yeah, Right!!!!!!!!!!!!
I take it that the Minister for Tourism,the Minister for Communications & Aviation and their Permanent Secretaries are in negotiations with LIAT on the San Juan(SJU) to Dominica(DOM) route given that American Airlines(AA)will be ending the American Eagle service out of San Juan on the 31st day of March 2013.
Given the dismal state of out “tourism”,Dominica does not appear have adequate passenger loads to sustain LIAT direct return flights SJU .Perhaps SJU/DOM flights with intermediate stops in SXM,or ANU may be NEGOTIATED by these Ministers and submit draft agreements or proposals for Cabinet’s consideration as a matter of greatest urgency?
You are talking too much logic here. That does not apply to Dominica governance.
I wonder if there will be any fare increases on the horizon. Just a thought.
They intentionally left out INCREASED TICKET FARES
CAN I JUST SAY LOL LOL….LOL