Travellers must wait at least two more years to see a reduction in LIAT airfare

Prime Minister Gaston Browne (file photo)
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By Carl Joseph

At a recent meeting of LIAT (1974) Ltd’s shareholder governments, it was agreed that it would be necessary to further delay to the 2018 recommendation by the Caribbean Development Bank (CDB) to lower ticket fares of the cash-strapped regional carrier by 25 percent.

The 2018 CDB study “assumes that lower taxes and charges will lead to cheaper airfares, and stimulate passenger demand”.

Attending the recent meeting, Prime Minister Gaston Browne said that, “the CDB would have a done a report confirming that [there is a relationship between] demand for travel and price…  [and] that there is some elasticity. So, if we could reduce the price by about, maybe, 25 percent, that may probably increase air travel by about 10 percent and then [LIAT] would probably break even.”

Browne said, however, “the problem is whether or not we have the fiscal space to give up 25 percent of that revenue”.

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3 Comments

  • There is plenty space around. The myopic view of losing revenue because of lowering taxes is just sad. The monies can be easily recouped via volume rather than killing “ones” with high taxes.
    When your own citizens say it is cheaper to travel outside of their own region then we as a people and region have a problem.

  • Which territory will be the first to take that bold step and cut the taxes in half?

  • If LIAT reduce the tax alot of people will travel. I went to Barbados 1 night in it is 15 passengers, does that really make sense. That ticket cost me almost $800.00 EC for 2 wks. It cheaper to pay your passage outside of the region. Even a wknd us expensive. Drop the prices for the region and you’ll surprised to see a faster turn over.

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