Pickersgill (left) and Gonsalves (right)
SOME CARIBBEAN leaders have argued that LIAT, Air Jamaica and Trinidad-based BWIA should merge to form a single regional carrier. Air Jamaica has lost more than $34 billion (US$560 million) since its privatisation in 1994 and is also carrying a debt burden of almost $42 billion (US$682.7 million). BWIA laid off a quarter of its 2,400 workers in early 2003 and recorded TT$138 million (US$52 million) in losses last year.
The issue regarding the merger, according to Transport and Works Min-ister, Robert Pickersgill, "is not new and has been discussed at CARICOM level. I'm sure it will be discussed again."
He, however, said a decision to merge Air Jamaica with the other regional airlines is not a decision that the Government can make as it is no longer Government-owned.
Meanwhile, St. Vincent's Prime Minister, Dr. Ralph Gonsalves, urged more Caribbean governments to help LIAT Airlines emerge from its financial crisis, saying the carrier was vital to the region's transportation network.
"I'm calling on the Governments to cough up the money," Dr. Gonsalves said on Friday. "If you have a community, you must have communication, and a critical form of communication is air transport."
In July, four countries Antigua, St. Vincent, Barbados and Trinidad agreed on an Eastern Caribbean $21.8 million (US$8.2 million) bailout package for the airline, which laid off 241 employees, or one-third of its work force in 2002.
Trinidad agreed to grant a five-year, EC$17 million (US$6.4 million) no-interest loan to help finance the package.
But Gonsalves said only EC$5.7 million (US$2.1 million) from Antigua has been disbursed despite a December deadline for LIAT to use the money for restructuring its operations. The countries have been unable to finance the rest, Dr. Gonsalves said.
"I honestly don't understand how some governments in the region are not supporting LIAT financially," he said. "I think those governments are short-sighted."
LIAT has received EC$23 million (US$ 8.5 million) in previous bailout funds.
Caribbean airlines have been struggling to cope with increased insurance and security costs and decreased travel following the September 11, 2001 attacks in the United States.
