by CAROL MARTINDALE

"LIAT (1974) Ltd would like to clearly state thatit is committed to regional travel and to having transparent policies as far as its pricesare concerned".

– LIAT (1974) Ltd. April 15, 2007

WHAT SPARKED this response from LIAT officials was months of comments and complaints from travellers about the high cost of travelling the region.

For months this has been the complaint, and for months airline officials have countered with explanations. Still, travellers vented their feelings about whatthey were being asked to pay to "hop" to a neighbouring island.

This issue came into sharp focus with a letter when Beverley Walrond wrote a letter to THE NATION in April condemning the cost of air travel in the region.

A trip booked on LIAT to Antigua cost her BDS$834.70. She gave a breakdown of the cost of her trip, including all the taxes to be paid on both legs of the trip.

This letter fuelled many more complaints from the travelling public some of whom queriedthe reasons behindthe spiraling fares.

One question asked by a concerned Barbadian was: "Are you, the leaders, encouraging movement throughout the islands or is it to discourage?"

What further incensed travellers was when carnival-goers were quoted fares between$500 and $800 to travel to Trinidad.

High prices were also quoted for St Lucia during February and again for Jazz in Tobago last month.

With all the negative feedback they were getting about their fares, LIAT officials quickly sprung into action
with a full response.

The airline explained: "In circumstances where tickets were purchased close to the travel date and seats were already heavily booked, fares are likely to be higher."

In the case of the ticket bought for $US834.70, the same trip booked for May would cost $467.20 (taxes included).

Voice to debate

LIAT further explained: "These lower fares will disappear as the demand increases. A flight booked to near-capacity willonly have seats available in the higher fare levels because the demand is greater for this flight".

Even LIAT chairman Jean Holder added his voice to the debate. He rejected any suggestion that the airline hadjacked up its fares.

"We cannot sell a product for less than it costs us to produce the product . . . . A fare that is $780 one way, $280 is taxes," he said, adamant that the airline was not price-gouging but just trying to cover its costs.

This point was reinforced by Prime Minister of Antigua and Barbuda Baldwin Spencer.

The stark reality, as he pointed out, was "a cut-throat situation taking place and the shareholder governments had to be called upon to give millions and millions of dollars to keep the airlines afloat."

He went further. Caribbean people, he said, have to understand that St Vincent, Antigua and Barbados could not continue to prop up the airline, it had to operate as a commercial entity.

Barbados, for example, according to Prime Minister Owen Arthur, pumped $40 million into the airline.

This past week, Vincentian leader Dr Ralph Gonsalves cautioned the travelling public notto expect lower fares.

He made it clear that LIAT was in no position to make any downward adjustment in the current fare structure.

He underscored the airline's responsibility to be efficient and prudent in its operational costs.

All eyes will now be on LIAT, Star of the Caribbean, the merged operations of LIAT and Caribbean Star which comes into effect June 15, to see if airfares will be adjusted downwards.

Director-general and CEO of the Caribbean Hotel Association, Alec Sanguinetti does not hold out much
hope as he believes this merger would be the "worst thing" for the industry and would "destroy" tourism.

"Silent killer"

Secretary-General of the Caribbean Tourism Organisation Vincent Vanderpool-Wallace said the merger would increase costs and be the "silent killer" of tourism.

He pointed out: "We have found that airfares to go to much farther destinations are lower than those competing for places here in the Caribbean."

Once again, LIAT officials have sprung into action. The airline has been devising different ways to make airfares attractive and affordable. Special fares were being offered to its many regional destinations as the debate continues about the high cost of air travel.

The promotion started with a "Clearance Sale" offering discounts of 35 per cent followed by a Midday Madness Promotion earlier this month which offered discounts of up to50 per cent for
bookings done between noon and 2 p.m.

Last week, it offered "Hair-Raising" 40 per cent discounts and a Super Hair-Raising Day with 60 per cent discounts.

It is now offering a buy one, get one free special where passengers will get one free ticket with every ticket purchased.

carolmartindale@nationnews.com