#BTColumn – Our airlift/airline dilemma

In 2020 during the height of the COVID-19 crisis I was warning of a deteriorating situation coming for our airlift, bringing consequences in our local economy. And now, the war in Ukraine has added a series of new threats.

I will not stop saying that now is the time to act! Barbados and the rest of the Caribbean region need their own airline and ferry system in order to develop their economies and allow for the exchange of people and goods.

We cannot rely on what is currently available – a very poor airlift system and no ferry, with a high dependency on foreign carriers. As a result of this, any schedule and fare for passenger or cargo coming to us is determined outside our region, without our control.

The LIAT saga brings into sharp focus the need for Governments to stay out of the direct air transportation business. However, we cannot forget Caribbean Star and Redjet, two private sector investments that did not survive.

Almost every day I am now seeing articles and declaration from politicians, regional authorities and experts about the need for regional airlift because of what is happening now, but I have long been saying this.

So what must we do? Our airports in the Caribbean are mostly like a dead-end road, where you arrive and you are unable to continue except for a few other islands. We are a small population so we are not attractive for the majority of airlines.

Instead of giving foreign airlines some sort of financial help or concessions to cover their empty seats, we need to invest in an airline that belongs to us, covering our need for our Caribbean region.

We are too focused on foreign airlines increasing their capacity and increasing the number of flights to the region, and this has been the case for the past 50 years.

Consider Barbados in 2019, the last normal year for travel, received around 2,300,000 passengers, and now that number is way less. This is compounded by uncertainty surrounding the cruise sector.

Setting up an airline in our region, and using the Caribbean as a hub for carriers from Europe to Latin America or North and Central America to Africa or vice versa, can create sufficient and stable traffic.

We have the ability to make the Caribbean a hub, similar to what is done in Miami, Madrid, Lisbon, Paris and London, among others.

With this project we can finally get direct flights from more than 20 destinations in Europe and the same amount in Latin America/Caribbean with a good frequency all year round. In a second stage, if we get Category 1, we can get between 10 to 15 destinations between Africa and North America.

The Africa connection finally could be established and the cargo could reach locations to allow us to get cheaper goods and food. The regional network will work with business and local traffic and receive passengers from all international flights so it will be automatically fed, self-sufficient.

An airline in the Caribbean based on these principles can go profitably a lot easier since it will depend on a lot more than just regional traffic with high operating costs and
airport fees.

Another issue that is connected is that of the establishment of a free zone. The recent announcement by the Barbados Government that it will be establishing a free zone is very good news. Also, the fact that the country is deepening trade links with Guyana and the UAE.

We have been hearing too much talk about the air and sea link from CARICOM heads at various meetings, but still very little to no movement. But as we know, Governments are not able to invest in another airline similar to LIAT.

The solution is simply to create a new private sector led airline that will offer a secure profit in a short time to avoid state help or liquidation.

In my opinion, Governments need to just invest in the business plan and be the facilitator while allowing the regional and international private sector to invest. If there is to be any government involvement, they can be small shareholders, and those who do not wish to participate would not be serviced. There must be government guarantees.

We could create four hubs, two intercontinental and two regional/international hubs. Barbados could be the main one given its strategic location and infrastructure. Antigua, Grenada and St Lucia could be the others.

I hope, for the region’s sake, at least one government in the region will take the lead, and organise such a project. There is no other solution for the region but for it to establish its own airline.

With my years of experience in the industry and ideas, I am willing, through my consulting company Antillean Atlantic, to be at the disposal of those who are willing to listen and take action.

Alessandro Giustolisi is a former travel industry executive and businessman. He can be reached at antilleanatlantic@outlook.com