The perennial issue of the financial viability of Caribbean Airlines (CAL) is again figuring in national discourse, ostensibly centred around making the airline profitable again.
Based on our own exclusive reporting in the Sunday Guardian last weekend, we note that a fuel surcharge on tickets; removal of the Trinidad and Tobago inter-island airbridge subsidy; an increase in the price of tickets and a further slashing of lower revenue routes, are among the most recent options put forward by the CAL board of directors to the Ministry of Finance for consideration.
CAL is also seeking further support from the State, which sources say could come in the form of a major debt write-off for the carrier, which is currently saddled with a billion-dollar debt.
However, this situation certainly did not develop overnight. For decades, the airline has been wedged-in with multiple responsibilities: A symbol of national pride of an independent country, an assured means of transportation for nationals to commute around the region, to North America, and often as a link to England and elsewhere on the European continent.
Critically, and perhaps most controversially, CAL is the major, at times only air link, for residents of Tobago to get to Trinidad to interact as part of the nation, and for them to utilise important national services.
CAL’s operations have also been involved in the politics of the twin-island, which has become even more important since the mid-1970s and the establishment of the Tobago House of Assembly. Continuously, concerns have been raised about the national airline being able to provide vital social and economic services to residents, especially those living in Tobago.
In such a context, it is often pointed out that in many instances, residents of Tobago have to trek to Trinidad through the services of CAL, which are claimed not to be reliable and fair to those nationals living in Tobago.
Equally important is the absolute requirement for CAL to provide a vital link to the tourism industry for leisure and pleasure, the main element of the industry being located in Tobago.
To complicate matters even more, Jamaica is a minority shareholder in CAL and given that country’s major tourism industry, the airline also has to serve that purpose, and also for trade within Caricom.
However, whenever geo-politics, tied into economics, become of international significance, or when fuel prices, political and military challenges are associated with air travel, such as the present, CAL faces seemingly unconquerable challenges with the T&T Government being required to meet the financial needs.
When all of the above challenges are added to those present in the airline industry internationally, talk arises about the need to sell-off the assets of Caribbean Airlines, which begs the question of the airline’s survival.
It is in such a context that the future of the national-regional airline has to be considered.
No mere traditional business plan can meet all of the needs of the above and many more. Quickie solutions and changes in board directors and management have simply not worked. A major operational plan based on the nature and requirements of the airline, researched and developed by a professional group, is urgently needed.
