by ANMARIE BAILEY

GOVERNMENT HAS PLEDGED to subsidise regional airline LIAT if loads fall below 64 per cent.

The upcoming fall season could also see less travel, which could "trigger the subsidy", Minister of Tourism and International Transport Noel Lynch said yesterday.

He said due to the demographics of the region "unless there is some form of subsidy, no small commuter airline in this basin will ever be profitable".

Lynch discussed the future of the commuter airline and regional tourism with the DAILY NATION following a meeting between tourism ministers and delegates of St Vincent and the Grenadines and Barbados at Sherbourne Conference Centre.

He said the viability of a regional airline was crucial to the Caribbean.

"We think we have an obligation to ensure the [LIAT's] viability, particularly in light of the CARICOM Single Market Economy. We have a moral obligation to look after our neighbours."

He added that given the economic structures of most of the islands, all must be done to assist LIAT.

"If your No.1 business is travel and tourism and movement around the region, it is important that we do as much as we can to ensure that there is a viable airline in the region."

Speaking about some of the challenges for the airline, Lynch said this was common for short-haul airlines such as LIAT, many of which were subsidiaries of larger airlines. He added that the issues faced by LIAT were not new to the region, especially the Eastern Caribbean.

Pool resources

In trying to find ways to support regional airlines, Lynch said the three airlines – LIAT, Air Jamaica and Caribbean Airlines – could pool resources to reduce costs.

"They can share counter space, buy fuel together, [and] share staff."

Lynch said an upcoming meeting in Puerto Rico would address some of these issues and a "model for regional airline success".

St Vincent and the Grenadines' Minister of Tourism Glen Beache hoped for greater travel within the region, and noted the importance of LIAT.

Commenting on the lack of investment by many of the Caribbean islands, Beache said the islands needed to look to each other for travel, and felt that LIAT's role was key.

"Without LIAT in our skies, there will no regional tourism," he said.