CEO of LIAT, Julie Reifer-Jones, has expressed concern over the cost of operating air transport within the Caribbean region.
Speaking at the Annual General meeting of the Dominica Employers Federation on Tuesday morning, Jones explained that the notion that LIAT has a monopoly on air transportation in the region is wrong, noting that there are several airlines serving the inter-regional market who operate within the Caribbean network served by LIAT.
“The truth is that the cost of operating an airline in our region is very high and without the economies achieved by large passenger volumes. These airlines have found, sometimes the hard way, that it is very difficult to operate in such small markets and be profitable.”
According to her, the regional carrier should be regarded as an essential service whose disruption could endanger life, personal safety, health of the population and jeopardize the economies of the region pointing out that since a number of territories benefit from this service, each should contribute financially.
“Yet, unfortunately, while recognizing the importance of LIAT to the region, too few territories are willing to come to the table and assist in funding this essential service, our regional airline. Ironically, we acknowledge the importance of the airline when it does not work but we are not prepared to do what is necessary to ensure that it works consistently,” she added.
Jones added that at some point, governments will have to come to the realization that lowering taxes will reduce prices and in turn help to stimulate regional demand for travel which, in the long run, will result in increased revenues for airports.
“Taxes make up a disproportionate share of the price passengers pay for a ticket in the region. In our estimate it ranges anywhere between 35% to 50%. This ratio is increasing as governments seek more and more to use ticket and passenger taxes to finance airport development.”
Listing the many challenges and issues the airline has in common with much larger and better capitalized foreign carriers, Jones lamented: “Many governments are happy to provide revenue guarantees to the big carriers but frown at providing the same to LIAT.”
She argued that a strong, healthy and profitable LIAT “was essential to the wellbeing of this region.” She called on all the governments of the region “to come to the table and inject equity into LIAT, if you have not already done so, in an effort to ensure that it meets both the social and economic needs of the region.”
What utter nonsense! Clearly, this woman is not going to do anything to improve what is probably the world’s worst airline, charging the highest per miles costs while dishing out the rudest service imaginable!
I do not think the governments should provide equity financing to LIAT, but I do share the CEO’s sentiment airport taxes in the service area are too high. The result is a ticket price which does not entice leisure inter-regional travel; people travel only out of necessity. Additionally, due to the small populations of the islands from which LIAT draws its travelers, it becomes difficult to attract a sizable travelling public to economically sustain its operations. Governments have to reduce airport taxes and fees and LIAT must streamline its operations to achieve viability. LIAT should not fly to every island every day,given the small number of fliers. Instead, it should to each destination no more than 4 days a week, with no more than one stop. This island hopping must stop. Even if governments are not forthcoming with tax relief, the reduced island hopping would reduce ticket prices by the landing fees which will not be required on multiple stops. When the governments lose out on the landing fees, they may come to realize the need to offer travel tax relief to stimulate flying. In essence, LIAT can force governments into doing what is the reasonable thing to do.
Boy look blows for LIAT! I will admit that LIAT needs to up their game but it is going to come with a price, you know! The point is that LIAT is run by Governments in the region and each Government wants LIAT to do things a commercial airline will not do. A coupe years ago, I travelled from ANU to DOM and I was the only passenger on the aircraft. Which other airline would do such a crazy thing? But LIAT had to fly to DOM because the Dominica Government said so. Most of us would have gotten out of flying if we were faced with the costs LIAT is faced with. For example, one engine for the DASH-8 is USM$2.2; fuel costs eat up 18% of revenue; payroll accounts for 29% of revenue; and aircraft maintenance swallows up XCDM60 per annum. We give the airline blows, but no investor would put his money in air travel in the region.
I am not an economist nor do I have a degree in business management. However, LIAT has been operating in this region for at least four decades, and most of the time it has had the monopoly in this parts of the region. I do not understand why the governments have to rescue this air carrier so often, and the same tax payers have to pay exorbitant air fares to travel to islands which are at close proximity. It is cheaper to travel from the Caribbean to the States than than it is to travel within the region with LIAI. Besides all this the service is poor. You are never certain with LIAT. Best we have a ferry system to transport us from island to island.
Well I have read almost every comment about Liat on this site and it is safe to say that everyone, and I mean everyone is fed up of Liat. The biggest bug bear seems to be customer service and maybe this CEO could be onto something if she read these comments but hey I’m guessing she has never listened to the customers hence the inevitable demise of Liat.
I think it is time that the Caribbean islands let loose the free market and allowed competition. Then and only then Liat might raise its game or die a quick and painless death. However I am hedging my bets and based on the financial performance of Liat over the past couple of years I can only see the decline of Liat. I hope that the Dominican government foresees this as well and acts accordingly and starts looking for a new airline to serve the people of Dominica
I love her initiative to keep the Airline in the skies and making it an essential service to Caribbean People. A lady with BALLS is what the Airline needs. Good Job Mrs. Reifer Jones. If the guys fail, I know a woman like you will make LIAT into an Airline that everyone will benefit from in the future with good service.
Seriously? Did she make an open statement that the governments should “inject” more money into LIAT?
She was right on one point – the taxes are too high for travel tickets. The governments impose a certain percentage of tax on tickets but it’s not difficult to see where it goes – Where do you think they plan on getting the money from to put into LIAT in the first place – US, the citizens and visitors/travelers.
Almost everything at Melville Hall has some political tie.
That debacle during Independence was unacceptable – the number of people stranded in DA was not overwhelming where each customer could not have received a letter from the LIAT office in DA apologizing and extending some type of “gift” – here’s a hint – a free meal at the airport on your next visit or a discount on your next flight with LIAT. Something to help customers. Seeing that most of us that had connecting flights on an unaffiliated airline had to pay for an entirely new flight be compensated. LIAT and all the “governments” that support them with unenforceable policies and procedures SUCK!
Wow! Liat again. Since as a boy growing up I have heard LIAT asking for bail off. One thing is sure; while LIAT is failing, its managers are living in extreme luxury. LIAT is a mother cow that produces good milk, however the managers are milking it excessively;down to the bone. For God sake can something be done with this bleeding of the company? LIAT is needed badly in this region. But………….. Alas……… Lord help us.
It always bewilders me that LIAT presents itself in the role of a martyr.That they run an airline, not for profit or reward for themselves but purely for the benefit of the traveling public, and the citizens of the Eastern Caribbean in particular,
Their customers should therefore be grateful, accept what they are offered without criticism, back the company without limits and with the protection of our governments (read: taxpayers).
LIAT needs to be reminded that it is not a social institution but a a commercial enterprise, a SERVICE provider, which does not deserve to be in business if it can not stand on its own feet.
Their attitude needs to change 180 degrees and I recommend that it be privatized in order to achieve this.
Liat, Liat, Liat. I think instead of the government of dominica talking about international airport they should use that money and invest in their own airlines, which will be a much more profitable business for dominica. It’s high time that LIAT should be feed to the dog’s.
I think International Airport or not, Dominica should really have its own airline. I would not invest any more money in LIAT’s stock.
Investing more money in liat? Hell no, we will just be injecting money into Antigua’s econommy.
For all these years LIAT been in bizniss and all these other airlines they acquired to shut down the competition they still finding it hard to operate in this regions???
Garçon allyou forming d %$#S man if by now allyou doh figure out how to run an airline throughout this region profitably and economically, then better alluou juss give up and let some other airlines Mantrol the airways den !!!
They didn’t shut down the competition. The competition pulled out because they were losing too much money coming here. Know your facts before you speak!
Are you saying that government should dump more money into liat to keep receiving that kind of service? Lady you and anyone else who feel this way got to be out of you all damn minds. With liat prices I personally think they offer the worse service in the airline industry and not even deserve a new customer, much less another dollar.
So how you gonna fly then? So many other airlines have pulled out in the past years because they lost so much money here. There’re not enough people to fill the planes. And…you missed the point. Look at any airline ticket and break it down. Most of it is Government taxes. On Some of the International airlines the taxes are twice as much as the fare. I know…I just bought an overseas ticket. And all of you want an international airport! So how much you want to pay for a flight on a 747 when there are between 452 and 600 seats on the plane but there are only between 10 to 50 people on one Liat flight? Be prepared to pay about $10,000 US for a seat! Alla you not thinking!
P. I dont know where you are traveling to or from. I travel international every year so please don’t try to tell me about international travel and ticket prices. It’s a shame for anyone to pay over $500.00 dollars from PR to dominica which is 300 miles. I travel from NY to PR for less than $300.00 dollars round trip, which is over 3000 miles.
Personally, i think that the government show ask for a refund.
Why? The Government gets already gets a huge chunk of the ticket money!!
This lady has to be joking.
I have a nice set of colorful words for that CEO… but anyways, no… until Liat start to have better customer service… I say to hell with Liat will try to avoid it at all costs
You can’t avoid Liat. How you going to fly? LMAO
Skeritt gave you $8 million of our money and we haven’t seen any improvement in your services especially to Dominica, while we Dominicans continue to stand at the back of the line when Islands like Antigua, Barbados, Trinidad takes precedence in your flight schedule. Why don’t you ask the Islands that benefit more from your flights to inject more equity into it.
I wonder if he got a receipt. If he has one we could ask for a refund .
All you have a pilot that is associated with a big boy in DA. Tell her to ask her man for money.
And maybe accountants with no command experience who are just acting as CEOs should just keep their mouths firmly shut in public.
She’s from Barbados – the majority shareholder – where the IMF is on the ground, and they just sent home 3,000 civil servants. Where is Barbados going to get the extra money from?
The shareholders in total are already putting more than US$ 110 million a year – every year – and rising, into LIAT just to keep the airline afloat. This is not “new” money for expansion of improvements, this is just to help pay the bills.
She also lives in Antigua, where the government can’t find the money to pay pensioners regularly. Where is Antigua going to get the extra money from?
St. Lucia and St. Vincent just had major natural disasters, and have better things to do with their money. So “screw LIAT” there (for now, anyway).
Grenada has it right – “Fix LIAT and we will put in money. We will NOT pour our money down the bottomless LIAT pit.”
And LIAT just cut service to St. Kitts/Nevis. Forget them.
Dominica just put in money and their people are still hopping mad at the meltdown disaster.
So put money in? From where? All the countries the former CEO just pissed off? This must be a New Year’s joke… wunnuh mussee want me dead wid de laughin…
I’m still waiting to hear about Trinidad asking for LIAT to be handed over for TT$1 after Brunton drop-kicked the airline from his year as a Trinidadian Trojan Horse – deliberately devaluing everything in the airline.
You have some very valid points here.
MS. Reifer Jones will be 61 this year and that is probably why she is act. CEO, waiting for a person with proper airline experience to replace her before she retires.
Why was she appointed as CFO to LIAT in the first place? The records of the the U.K. registered company she worked for previously,Almond Resorts Marketing Ltd., show that her appointment as a director was terminated on 10 Oct. 2008. As we know Almond Resorts in Barbados got into serious financial difficulties, closed its doors in March 2012 and Almond Resorts Marketing Ltd. itself was resolved in Sept. 2013.
All of a sudden MS. Reifer Jones turns up as chief financial officer of LIAT in Jan.2009. What happened in the intervening year and a bit after the termination of her position as a director with Almond Resorts?
On what merits- and track record was she selected to be in charge of finances at LIAT, and now in charge of the entire shop?
of course Liat will come again and ask for and more money. Liat enjoys unprecedented monopoly and still begs for additional financing. Its not capable make any money so it needs equity. Such company as Liat has to be dissolved and all their managers send home. But its all wishful thinking and the reality is following: sooner or later Liat will get new equity injection and more and more. Your leaders will continue to tell you stories that without Liat its impossible bla bla bla… and you can argue but majority of your compatriots will believe in those lies and will allow your government do whatever they want without any control, transparency and reporting. Your government is reflection of who you really are and as old proverb say: you deserved the government you have….
Woman en LPMwwwww all you asking for more money. We already gave LIAT our money and is blows we getting from LIAT. Give ay you more money is mor blows. Our businesses are falling down like dry leaves and our government doh even care . The Arial Tram that employed over 60 people the government allowed to fail; the government and Charles Saverin decalais Brizee Mart and many many people lost their jobs; Bello on the brink of down sizing and LIAT want more money .
Madame oy pwen gad because if Skerrit in his MA take our money and give LIAT again is F&&&&nk riot in Dominica.
what can 8 million dollars do? you see that LIAT PUMPS USD300 in Caribbean economy and you chatting nonsense.
She is confused, she holding on to two surnames. You married let go one. Damm it.
Grow up man. This is 2013. Women are no longer chattels and enjoy the same rights as their partners. She can even use her maiden name if she wants.
Why not ask Richard Branson if he wants to buy liat.
Richard Branson is struggling right now, Virgin has smaller Aircraft coming to Antigua and Barbados now and theyre cutting back flights. The region will also loose out to the UK.
Grand Bay Boy, where did you get your wisdom from? The reason Virgin Atlantic is using slightly smaller planes on some Caribbean routes is mainly due to improved onboard service, better fuel economy of the brand new aircraft and a more comfortable and quiet cabin. So you see, Richard knows how to go about his business and keep his loyal customers happy unlike LIAT.
As for you, do not comment on issues that are way beyond your mental capabilities, i.e. donkey should not run in horse race! Okay?
CEO of LIAT, Julie Reifer-Jones, have you ever heard of the concepts of efficiency, effectiveness, and getting it right the first time? When LIAT can show that it can adhere to these simple managerial requirements then and only then can we or should we talk about more money! A badly managed company does not need more money, it needs better management!
No Airline has these attributes you think LIAT has to your utopia? you think this is heaven. I’m sure you don’t have it right in your work place or you need to go.
why are we talking about liat. I thought the discussion would be about CIT airline in 2014 am i missing some thing here?
CIT Airways? Who, what, when? Don’t you know that “pie in the sky” has disappeared from the face of the earth? Try their web site and see what you get.
LIAT ticket prices are reasonable, its the taxes that is high the taxes are sometimes 50% of the price of the ticket depending on where you travel, inter regional travel could explode if taxes are reduce by 75%
Someone that knows what they’re talking about. Thank you!!!
Reasonable to me = value for money, and that they are certainly not!
Woman you must be out od your blasted mind! all you need to stop running LIAT like a soup kitchen and start operating it as the business that it is. You too will soon leave the helm.
Mrs. Jones you must first do an introspection on LIAT: Who has benifitted from LIAT all those years? Who is receiving the big salaries at our expense? What new jobs were created since you closed down operations in the other territories? Who got them? How have you responded to concerns and complaints of travelers about poor service? Have you trained your staff to treat passengers with respect? Are you concerned that passengers are not getting value for money? The people of the Caribbean are extremely fed up and disgusted with LIAT. We have all experienced or know people who have experienced inhuman and unjust treatment. …We will not support our government investing one cent more in a failing company…The glorious days of LIAT are over. You have milked the cow dry…Do like other bankrupt companies and sell out or merge…We don’t care…Let the free market mechanism work in the Caribbean Airline Industry..
There are many stories to be told in the LIAT saga, the most important and for me more to the point is that of customer service of the lack of. A major part of any company’s success is tied to the good will it generates from the public it serves. If LIAT is unable to provide quality customer service(the soft part of the business) due to the fact that operating costs are high then maybe the CEO is on target. This I say with extreme generosity because it is my belief that what is wrong with LIAT can only be fixed by a paradigm shift in the thinking of the entire LIAT management and staff in their approach to the customers.
Joke of the new year. If the population is not enough, then cut costs elsewhere. Start with your salary. Because why you have one with a loss making organisation is beyond me. Not that liat should be profitable, since it’s owned by govts. But it should at least break even. Or the loss significantly reduced. Tax payers don’t have bottomless pits. There are many many ways to cut costs, be a real CEO and explore them.
I really cannot understand why this lady would ask regional governments to pour more money into LIAT’s pockets.I suggest she recommend that LIAT do some serious house keeping.Your pilots will disrupt service to any island just so they can fly their favourite routes with full support from their union and we must give them more money? What plans do you have in place to improve the poor quality service that is being metted out to the travelling public on an almost daily basis? Can you imagine flying to Antigua from Dominica only to be forced to return to Dominica via Barbados after having missed your connecting flight to miami? We Dominicans have suffered enough at the hands of LIAT.We cannot continue to pour any more money into this airline.Improve your service and customer relations and we can start talking.In the meantime no more money,dinero,or l’argent for LIAT.
note that she never mentioned dominica gave liat 8m.did liat really receive that money?start thinking you red dominicans.dont forget the white man and the helicopter all the weevandez lost their money and shut their face,they send a black man to jail.you all know its a white man that you all gave your money. dummies.
the reason in was not mentioned is because dominica has not fulfilled its promise of 8 millions dollars. dominica has not even given 4 million dollars so get your facts before you speak.
you are one of those who should be jailed for knowing who in antigua received the money.what happened to 8m that was in the treasury?i am holding you and the auditor responsible.start getting your green card.
your boss and tony said they bought shares on the radio. memoire poulle?
I hope you are about Dominica only gave 4 millions because one in his or her right mind would give liat or should i say invest in Liat.
Correction…BEACHPILOT437. LIAT is actually 57 years old… almost 60 yrs and shows no sign of wisdom or business maturity. Ms Jones is like many of the LIAT employees with the typical ‘civil servant’ mentality.. they feel entitled.. they must get handouts. Good service and efficient management are foreign to them. They show no gratitude to the customers and the tax payers.
Did Ms. Jones speak of LIAT’s pitiful customer service and the need to improve it or to create it? Did she speak of the condescending manner customers are treated? The investing governments need to give LIAT standards and business targets and make them ACCOUNTABLE like all other efficiently run businesses.. not just pump good money after bad… then we can talk.. If they cannot deliver then.. next…
Woman you mad? I would think that in your benefit package as an employee of LIAT you are provided with at least one visit per year to get your head checked. Well it is time to take advantage of that benefit before the end of 2013 because it is evident from the contents of your speech “the elevator does not stop on every floor”. No you did not utter these words that I am reading. Tell me you did not!!! I give your speech a “B” for BULL*****. Whoever invited you to speak at this function should be beaten with many stripes….both you and them….you must want to give yourself a salary increase already. Give us a break lady.
LADY GO GET A LIFE YOUR BEING PAID TO TALK THIS CRAP,WHO THE HELL ARE YIU FOOLING,YOU AND LIAT CEO GO TO HELL.
Hahaha more money into liat and they treat us the consumers as sh*t? Hell no! We need to pour more water on their drowning a**. What happen to all the money they r taking from us while giving us bad service? Liat hahaha u sacrewed me november 4 not again
I so agree with this lady, they should realize that less taxes mean more travel and so more profit.
but this is the same way they killing their countries economies.
so so sad!!
Hahahaha…that’s laughable!!
Why should the other regional governments inject liquidity into the airline when Antigua, Barbados, St.Vincent and lately Dominica are just too willing to carry the ball.
Asking the other islands to volunteer their funds is a waste of time. Those three islands must force the issue by limiting flights to the non-paying islands.
They are all to happy to tax the heck out of tickets, using LIAT as a cash cow, but are unwilling to share the burden.
Is Liat a bottomless Pit? More money is pumped into it more they ask for money. Liat just carried a little water and food supply to St Lucia right away they are looking for sympathy. Ms Jones review the meaning of essential service again, at no time should the governments consider an essential service, it is because they donot want pilots to strike for their rights why they are bringing that point to the table, no way Liat.
The Governments do have taxes but what about all the service charges that Liat is putting on without telling any one. They are aware that governments will not agree to a fare increase so s/c goes up ever so often. Liat pay all the landing fees that you are in arears of to the governments of the Caribbean so they can subsidize you better it a two way road.
So u mean to say they want more of our money. Jah Rasta. My husband must not give more of Dominica’s money to this company. It’s a waste of time.
After liat flight so expensive government must help again yes help them by getting some planes for us
I would rather Dominica injected money into it’s own Airline. Even if we start at 1 small airplane. We can grow that. I even go as far as suggesting a name (FLY KUBULI)Some will say what’s the point, but our only concern should be getting our citizens and direct visitors to Dominica as quickly and efficiently as possible. The longer we spend in Antigua, Barbados or St.Lucia the more revenue we generate for them. Start with one, then you can start to look ahead.
Ms. Jones you echo prehistoric ideas regarding the operation of an airline, mainly LIAT. Governments should not be in the airline business besides overseeing regulations and safety.
Dominica recently injected some EC$8,000,000.00 into Leave Island Any Time Airline after one of your hangers burnt to the ground in Antigua.
And what was the return on that investment for our citizens and visitors alike?
Inconvenience, flight cancellations without warning, lost baggage, poor customer service and malcontent amongst the traveling public.
Listening to people like you speak makes me sick to my stomach. Please take your “Rubbish” somewhere else.
hell no
Liat was established some 40 years ago and funds have bee injected into the airline since then , when will it end .35% – 50% as taxes , but yet 0 improvements , no sales or discounted fares , high fares , poor service , but they want caribbean nationals and their governments to support them . The only thing LIAT has is good pilots and a good safety record .Praise the Lord for that .
The 35 to 50% taxes go to the Government and airports, not LIAT!!!!! Please reads carefully!
Come on. Is LIAT not majority owned by the same Govts.? Sow why should they tax their own out of existence?
And don’t “foreign” airlines have to pay the same taxes, such BA, Virgin, American, Air Canada etc. etc.?
Last but not least, can you put your hand on your heart and swear that LIAT has paid/is paying the correct landing fees to all these governments?
wtf!!!!!!!!!!!seriously…allu asking for more money still….really??????????
Scaremongering tactics. Let them look at bloated staffing and get rid of that lady with the Don King hairstyle first.
LIAT will be landing on the bayfront on the 1st of January 2014… blagadam
