There is confirmation from interCaribbean Airways that it has applied with T&T’s Civil Aviation Authority to operate a scheduled service in this country.
InterCaribbean Airways chief executive officer, Trevor Sadler, gave an update to journalists last month at a news conference at the Caribbean Hotel and Tourism Association (CHTA) Marketplace in Montego Bay, Jamaica.
When asked about the date that the application was filed, Sadler said he did not have that information at his disposal.
This means if interCaribbean Airways enters the T&T market it will challenge the dominance of Caribbean Airlines (CAL), the national carrier jointly owned by the governments of T&T and Jamaica.
A Business Guardian article on May 6 said the Turks and Caicos-based airline hopes to operate a Barbados-Port-of-Spain route for Winter 2024.
CAL is currently expanding its route network which includes destinations such as New York City, Toronto, Jamaica, Trinidad, Barbados, Caracas, Suriname, and Guyana.
Last month, the airline announced plans to start operating flights to Puerto Rico from Trinidad to Puerto Rico, via Barbados.
CAL is planning to bring in more Boeing 737 Max 8s, ATR 72-600s and introduce Embraer E175s to service routes in the Caribbean and Latin America, according to the Business Guardian article last month.
In recent months interCaribbean has faced criticism for its delays and staff attitude to customers who query about their flight status.
Asked whether the airline can handle a new route since it is prone to challenges on its existing route network that spans from Turks and Caicos to Guyana, Sadler said that interCaribbean has been working to address the shortfalls and make their product top-class product.
The CEO highlighted what the airline did last December to alleviate the challenges to the company and customers posed by external ground staff in Barbados.
“We spent US$750,000 on equipment that we brought in. We hired 53 people to come in and join us in Barbados and begin the journey where we owned the relationship as opposed to simply allowing a handling company who has a varying degree of interest in our interest,” he outlined.
“We spent a lot of time training people. We used the facilities of the University of West Indies to do this. We brought in all of our most knowledgeable people to make sure that the folks we put in front of the customers are the folks that make it through the training.”
“So we took on board folks from Barbados who wanted to work, who wanted to make a difference, and constantly they do. So I would admit we had a problem last year, but that’s behind us.” Sadler detailed.
He indicated that the airline sought to acquire more planes and staff to meet the demands of customers and retire aged aircraft which can pose challenges to the service that interCaribbean provides.
Sadler noted challenges in the airline industry, companies may not have a plane or crew at a particular destination to prevent disruption and delays to passengers.
The airline’s CEO is making a plea for regional governments to cut airline taxes to encourage growth in the industry and increase visitor arrivals.
Sadler revealed that the airline pays over US$300 per person in taxes in each of the countries to which it flies.
He described this cost as prohibitive.
“There is not a dollar airfare there yet for us. So, imagine when you are in the Caribbean, and you want to go somewhere, and you want to take your wife and kids from A to C, it is US$1,200 in these taxes and fees. So, we will only have what we have in the way of Caribbean travel based on various demands. But it is going to be difficult to increase the amount of flying when we have to tell you, you have to pay this much in taxes and fees. We have a lot of people who I hadn’t realised, until they wanted to call us out on our change fee, because they were taking a domestic flight,” Sadler disclosed.
He said that someone was complaining about why they had to pay a $50 change fee on a flight.
“The answer was if the name of the destination changed, ie the country, it was an international flight. Even though it was 25 minutes from here, 30 minutes to there, these are still different countries. So, my fees, I think, are very reasonable in terms of what we charge.
“But we have to collect the money for the government. We have to pay the credit card fees of US$300. So we would truly like to grow. We would love to see some governments bold enough to say, “Let’s cut the taxes in half for Caribbean travel.”
Further, Sadler said he is even worried about the US$300 in taxes as it makes him nervous.
“It’s just too much money to have to pay. It’s going to take a brave leader of a country or two to lead that change. But we are not seeing it yet,” he added.
Last month, during an Antigua and Barbuda radio interview, that country’s Prime Minister Gaston Browne explained why it is not so easy to lower taxes.
“It is a difficult proposition to expand these airports and maintain them. It takes an enormous amount of money, and you will find, for example, many of these airports within the Caribbean, have certain financial obligations to financial institutions to the extent the revenues they generate, the countries have to service their debts. So, it is not an easy proposition as some people may think,” Browne disclosed.
Last August in an interview with Business Guardian the airline’s founder and chairman, Lyndon Gardiner, said it is financially stable and here to stay.
He said that it is very costly to run an airline and he believes that the high cost is what ran LIAT into bankruptcy.
The founder and chairman of the 32-year-old airline debunked all rumours that the company is experiencing financial difficulties.
“We certainly are not encountering any financial difficulties. We have a fairly rounded aviation enterprise. The company does a lot of different things connected with aviation, not just flying. The issues we are having are all human resource-related, especially with pilots, as you know you cannot just take someone off the streets and tell them to fly a plane. Caribbean Airlines has also targeted some of our pilots, so we do have some constraints in that regard,” Gardiner disclosed.
InterCaribbean Airways has 17 aircraft in its fleet, including four ATR 42-500s and three Embraer ERJ-145s, according to Gardiner.