Director of Dominica Hotel and Tourism Association (DHTA), Herve Nizard, has said that unfair competition from LIAT is one of the main reasons why many airlines have pulled out of Dominica or have gone bankrupt.
He also said this is having a major impact on the regional airline and tourism industries.
Nizard, who was addressing a forum at the 42nd DHTA annual general meeting on Wednesday, said air access to Dominica has always been an issue, noting more has been said than done about it.
“Throughout the years we have seen many regional airlines cancel Dominica from their time tables and schedules and far too many go bankrupt. The termination of the air link once provided by Cardinal Airlines, Carib Aviation, Air Guadeloupe, Air Caraibes, Sisserou Airways, Caribbean Star, Caribbean Sun and American Eagle has had a tremendous negative impact on the development of our tourism industry,” he said.
He added that four major factors have been a serious burden and challenge for these airlines in the past and continue to be today.
He remarked that one of them has been unfair competition by LIAT.
“LIAT has always been far more aggressive and efficient in trying to drown any newcomer and competing airline than trying to offer decent customer service experience … this has had a major impact on aviation competition throughout the Caribbean basin,” he noted.
Nizard mentioned that taxes and fees levied on air tickets by governments and airports throughout the Caribbean is another major issue which the airlines face.
“The market can only accept a fair ticket price but roughly 50 percent of this ticket price are taxes and fees …” he noted.
The director also stated that the OECS Aviation Authority, poor efficiency and high operating costs is a major issue indicating that these three factors fall under an unattractive business environment.
“They are not an attractive environment for private sector investors and providing an attractive business environment is the responsibility of the government in a viable economy. Governments are not responsible for creating jobs, they are responsible for setting an attractive business environment for private sector to invest,” he noted.
Nizard named what he described as ‘diluted connections’ as the fourth major issue facing the airline industry in the region.
“We have always been too passive in the construction of our visitor itineraries and therefore they have been connected in too many Caribbean hubs … accordingly 30 original carriers have all, most of the time, loaded only 15 to 20 percent of the total number of travelers in each hub making it impossible for these regional carriers to reach their filling factors,” he explained.
He called on stakeholders to be more proactive in the way that they assist visitors in building their flight itineraries and have them connect to a limited number of hubs so there will be enough passengers available at each hub to fill a small aircraft.
Meanwhile, Nizard said a small task force was implemented following an Air and Sea Access Conference held in Dominica last year which came up with some short term solutions which incldued trying to attract more airlines to Dominica.
According to him discussions are ongoing with airlines such as Winair and Caribbean airlines.
Only now I can understand it. I flew JetBlue to Barbados. I landed a 12:40PM, but the connecting LIAT flight left at 1:00PM. I had always suspected a conspiracy between LIAT and Barbados, but I had no information to substantiate my suspicion.
This is an incredible article. Very well written. The points Nizard makes are concise and truthful.
I love my country, but that’s one of my main reasons for not coming more often; ease of airline access. It’s 2013, and we’re still have these kind of issues. SMDH
On the subject of taxes. Whoever invented that asinine idea of having to join another queue, outside the the check-in hall, to pay your departure tax, through a little glass hole in the wall, where you can’t even see the attendant? It is not so much the amount but the inefficiency and irritation of it. Anywhere else such tax is covered in the ticket price. Imagine having to join such a line at Miami, JFK or London Gatwick? Not to mention the blatant discrimination of charging non-Dominican visitors more than Dominican nationals – try and do that in the U.S.A.! Does it really cost less to provide the same service to one of our own people than foreigners? What messages are we giving to people, whom we want to attract to come and spend their time and money with us? You might think these are only little things but they have a big negative impact.
I hope Roosevelt is LISTENING.
i thin we are omitting the fact that regional travel is important. Yes we need international access, but reliable regional air transport is a must.
We seem to forget that other caribbean nationals can be tourist to Dominica. If our Govt lowered the taxes, not arbitrarily, but with sound mathematical advise, we could see an increase in regional tourism.
There are many caribbean people who say there would love to visit Dominica. Imagine if you could visit for a weekend $349 -$499 from any caribbean destination, Dominica would be the Caribbean hot spot… We are nestled in the Middle.
For too long our leaders have been short sighted. We need to grasped the concept that less means more… we can’t ask LIAT to lower fees, the airfares are as low as possible.. Look at the other airlines that all failed, its not because of their airfares bout the taxes that Govts impose. and why should dominica do it because everyone doing it? Lets be the leader and significantly lower the taxes. Then the Demand for Dominica will increase.
More tourists, more stay over visitors.
Caribbean nationals can be tourists too.. Lets get them to Dominica. The only way they will come to our Island is with lower airfares. (The Govt taxes must be lowered)
Imagine paying one way US$299 from NYC to Barbados and then have to pay US$225 oneway LIAT Barbados to Dominica? a 4hr flight verses a 50min flight? US$97 in taxes?
Well said Mr.Herve, I knew all along while in negotiating other business with you, you knew what Business and Customer Service were all about.
I have found that Liat’s direct flights to and from Barbados are reliable although I understand that many air travelers to Dominica have a Liat horror story to tell. Mr. Nizard, what is it that you want the government to do? Cut taxes on flights? I can assure you that saving $50.00 on a Liat flight to Dominica is not going to be the determining factor to a tourist who is planning a $5,000 plus holiday in the Caribbean. May I suggest that the Dominica Tourism Association focus on ways “stakeholders” can collaborate to ensure a simpler and more enriching travel experience for visitors to Dominica. Keep in mind 3 essentials for a good travel experience: Safety, Value and Natural Beauty. You got the beauty – work on the other 2.
$50? he said 50% of the price is taxes and fees!. When you got a direct 5 hour flight from NJ to BIM round trip $300+ PER PERSON and a 30min to 1 hour flight Round trip from BIM to Dominica via LIAT $300+ WHA?T THE HECK IS WRONG WITH THIS PICTURE?????? LIAT IS DAMN A SCAM!! I wish Caribbean sun and Star stayed! They were trully giving them a run for their money
@american tourist, I think you misunderstood Mr. Nizard’s statement.
Mr. Nizard said “air access” to Dominica has always been “an issue”.
Mr. Nizard said “many regional airlines cancelled Dominica from their time tables” causing “tremendous negative impact” on the “development of our tourism industry.” He added “four major factors have been a “serious burden and challenge” for these airlines.”
He remarked, and I agree, that one of the “major factors” has been unfair competition by LIAT.
““LIAT has always been far more aggressive and efficient in trying to “drown” any newcomer and competing airline than trying to offer “decent” customer service experience.”
Mr. Nizard mentioned that “taxes and fees” levied on air tickets by governments and airports throughout the Caribbean is another “major issue”, which the airlines face.” Honestly, the HIGH taxes and fees make the airfare expensive, causing many people to not travel.
@american tourist, why should half of the ticket price be for taxes and fees? Currently, we have to pay for luggage and carry-on. Are we expected to travel with only the clothing on our person?
If I misunderstood, please advise.
Your observation re. LIAT flights operating out of Barbados has merit. My experience is that not only is it more efficient but also more customer-friendly than Antigua and much could be said for transferring the main operations centre for the airline from Antigua to Barbados.
The only gripe I have at present is the poor scheduling from/to Dominica for interfacing with international flights in Barbados, necessitating long connection times, particularly with regard to the U.K.
You lie liat is very unreliable travelers usually miss their connecting flights due to the delays of the flights most of the time by hours so travelers to Europe and the USA has to purchase a new ticket
and liat fail to take responsibility
A.T., wake up and smell the bush tea! You are dreaming!
St Vincent and Antigua prime minsiter came to Dominica both said we do not need an international airport, yet St Vincent will soon have theirs. Dominica will be the only one in the windward islands without one..they are all laughing at our prime minister guess they think that this little boy p m can be dictated to and he will listen..Poor us Dominican, thats why more people do not want to go home too often
I think while they were convincing Skerrit to not build an International Airport they were building theirs to TAKE AWAY the PROFITS from Dominica. I guess, Skerrit was OBEDIENT.
Now here’s a sensible man talking!
The lack of competition in this aviation industry hasn’t benefited the consumer. LIAT isn’t forced to vie for consumer business through low prices. Neither has competition forced them to improve the quality of their customer service, in order to encourage consumers to buy their product and not their competitor’s.
We are all getting a raw deal from LIAT – blatant robbery I hasten to add.
I have never considered myself to be a business savy individual…..my talent is more of a technical / engineering aspect. Despite my short comings, I have always wondered what would be the outcome now, if the UWP government and the present labour government had invested the effort, energy and financial assistance to Cardinal or another similar airline venture that is of Dominican in nature.
Allow local Dominicans to invest in the venture and see how it turns out.
By the way….This was published yesterday on St.maarteen:
http://www.todaysxm.com/2013/11/12/winair-expands-fleet-and-adds-new-destinations/
Good news
Did Cardinal ever pay their landing fees?
What this guy is saying the people of the North, emphasize by the UWP, have been yelling that same song LONG time. LIAT is a cheat and a rip-off…well not LIAT but the governments responsible for LIAT. They all crying tourism, tourism, but what they are in-charge of they use it as a knife to the sides of the tourist/travelers – half the cost of the ticket is Taxes. How the hell you want to attract tourist with that? How are u promoting inter-regional travel when the government wanting half the cost of the ticket.? It shows poor management that why LIAT never makes profit. Less people travel at higher cost , its that simple.
A LIAT ticket coast me $347.98US from Antigua to Dominica return, 50% of that is government taxes. While I paid $250.00US from Atlanta to Antigua (return)with $30.00US taxes included.
You mean the Caribbean heads are that stupid that simple maths becomes so excruciating and common sense becomes a luxury?
Make the area competitive, remove the ridiculous high taxes in the region, more people will come to the region and therefore you will make up 100 times more for what you miss on the airline. Get the folks in and they will spend the cash. Not drive them away with high taxes and say tourism is our business, that makes NO DAMN SENSE!!!
A round trip ticket from Fort Lauderdale or Miami cost less than $200 US yet a round trip ticket from Puerto Rico to Dominica via LIAT costs almost $500 US. SHAMEFUL.
“Governments are not responsible for creating jobs, they are responsible for setting an attractive business environment for private sector to invest” ….Very true statement.
Skeritt gave Liat $8 million of our money and instead of improved service for Dominicans.it has resulted in a decrease of service and a reduction in flight service. But I guess it’s none of our dam business to know that.
So true, well said.
International Airport would be great too.
Everybody bleats international airport but never address as to why people would come to Dominica?
Poor facilities for tourists and the ones that do stay get robbed or raped on the beaches and their cell phones, money and such taken at their lodging while the police sit in their offices half asleep playing games.
No, we want and want but do little to earn it.
@Concerned, your concerns are MINOR.
I probably could have said it better, but my ‘better’ would have involved choice words that should not be forced upon the general public.
When frustrated Liat customers say that what it needs is more competition I hope they see how many competitors have fallen by the wayside because Liat management know they can be incompetent and the governments will bail them out.
On the question of taxes and fees that is something where creativity is needed.A few years ago the New York transit authority was facing hugh deficits and instead of raising fees slashed and lowered the price of tickets.Guess what? They made a big surplus.You see when priced were reduced more people wrer able to travel more often so they sold more seats and made profits.
Similarly if the governments who own lest lower taxes and fees then more people will travel more and there will be more revente at the end of the day.Also other airlines will be able to compete fairly and by increased marketing more travelers will come to our region.This means a win-win for all, the paying travelling public, the airlines, the tourism sector, commerce, etc and governments eill get more revenue for development of their respective countried.
Bravo, bravo Herve!!!
Herve,
I support your comments 120%. BTW did you know that LIAT owes the Government of Dominica Millions in Landing/Navigation fees. Isn’t it ridiculous that LIAT continues to burden this country with poor service now no payment of fees? If your doubtful of this comment ask the Chairman of DASPA.
But their country manager continues to get paid. For what, especially since LIAT have no ticketing facilities at Melville Hall and the check-in staff must refer for any decisions to Antigua. So frustrating but of course, the “big”! boys dont’t feel this, they go straight through VIP.
Liat is a waste and i dont understand why we put money into it.as long as liat remains in antigua we will continue suffering.you could not have said it better Hans.
The PM knows everything you just said about LIAT and still invested $8 million in the company….meanwhile Antigua and Barbados has so many other options with other airlines…..One day Dominica will wake up and realize that these other governments are only concerned about themselves and maintaining the status quo…..
@ observer its so funny how 2 people could read one story and see things so different but I don’t think that’s the case here some are just mischievous and misleading now here it is why the PM had to invest in liat the man just spelled it out,every airline that tried liat block them out so what can u do more than join them to get to where u want to be.So now could u tell me why is it St Lucia buying into liat too if they have an international airport already?
Investing into LIAT is NOT to get an International Airport. They have other reasons for investing, reasons that we do not know about.
Maybe because shareholders enjoy fringe benefits, such a concessionary fares, perhaps even free tickets and preferential treatment for themselves, friends and family?
LIAT will never improve service because everytime people boycott them and they are near bankrupt because of bad service, the governments of the Caribbean furnish them with millions. Way to go LIAT, more bad service, more money you get.
WEll, I am not surprised by this revelation. For far too long the Carribean Governments have been going LIAT a free ride for their continued disrespect and lack of class that is displayed onto west Indians every day.
So this will only stop when a new Government come in power and refuse to go with LIAT and it corrupt share holders past and present policies.
We are all saying that something has to be done, but we are all waiting on some else to do it.
If we all form Dominica stop purchasing tickets form LIAT this will be one way we can show our displeasure of this non-sense.
And by the way international air access to Dominica is the way to go.
We are the only island in the OECS still without a major airport.
Great speech Herve.
Good to hear someone who knows what he’s talking about tell the truth in simple and clear words.
Thank you.
Hans
could not have said it better very true say
Couldn’t have been said any better. Straight up.
Well, said. I like the part especially where says, “Governments are not responsible for creating jobs, they are responsible for setting an attractive business environment for private sector to invest,” ”
People need to realize as ordinary Dominicans, we all have a part to play from the way we greet our customers, local or foreign.
The chickens have indeed come home to roost. It was the same members of the DTHA a few years ago who agreed with Skeritt espousing this nonsense that Dominica was not ready for an International Airport/Jet Strip call it what you want.
The lesson here is – you must always prepare for an opportunity even when it is not there, so whenever it comes, you’ll be ready.Ralph in St. Vincent understood that. Skeritt’s problem is, he lacks the foresight and is devoid of any leadership qualities
I’m in agreement with the imformation mr nizard have produced. This imformation should be considered very seriously by all stakeholder.
This should not be seen as a means for the people of the country to express stupidity or play politics but instead they shoud ponder upon what has been said.
Again, it was VERY GOOD and to the point with lots to digest.
I welcome the efforts by the DHTA to seek a permanent solution to the air access problem plaguing us right now. I also invite them to take a critical look at sea access. A high speed ferry once a day from Antigua or from St. Lucia would benefit us tremendously.
Could you please repeat this for the benefit of Dominicans and the Government of Dominica: “Providing an attractive business environment is the responsibility of the government in a viable economy. Governments are not responsible for creating jobs, they are responsible for setting an attractive business environment for private sector to invest,” he noted. The Labour Party Government of Dominica has never been a supporter of the private sector and that is our problem in Dominica. The same is true in Venezuela, ‘show me your friends and I will tell you who you are’!
Governments are not ONLY responsible for creating jobs, but they are.