Of course, pretty much anything can happen between now and November, but lets look at what increased competition has already achieved. Book a seat from Toronto to Barbados for travel on the first week of November, 2008 and with Air Canada the cost is currently CAD$898.05.
Travel on the same dates with WestJet and the cots is CAD$673.13. Both fares include all taxes and surcharges as they have been applied today (5th July).
Adrian Loveridge
Subscribe to get the latest posts sent to your email.
The same thing happened when pressure was put on LIAT. Competition is always a good thing for the consumer. Check C&W and Blue Cards, all of a sudden C&W rates drop low again. I heard through the grapevine that Sir Alan is gearing up with another american airline to start another service in the region. The other airline has just started flying into St Martin to feel out the region
It appears that the issue of region air fares was not addressed in any direct and focussed way. CEO of LIAT has suggested that the very large component of taxes which make up the regional airfare should be addressed by respective governments. Some regional governments have responded by indicating that the many modern airports which exist in the region have to be paid for from the taxes and therefore their hands are tied as far as reducing the tax component of the airfare.
It seems that we may be soon encountering a case of killing the hen that laid the golden egg. If airlines continue to raise airfares and or cut out routes it will affect interregional travel as well as traffic from the outside and then what?
[…] RD wrote an interesting post today onHere’s a quick excerpt […]
Based on these new fares being offered by WEST JET it may become cheaper to travel to Toronto than it will be to travel around the Caribbean islands, what does that say to you?
I for one am happy to see the new and enlightened measures coming into the fray where we are going to be seeing new hotel rooms coming on stream and new airline services to help keep the likes of Air Canada in check with their runaway fares.
David,
Yes! I heard Minister Lovell of Antigua and Barbuda argue against the point that I, a number of other people and Mark Darby, the CEO of LIAT have been putting forward.
BUT If high departure taxes and other add-ons deter people from flying within the region then Governments does NOT collect Airport Taxes or ANY other taxes including those levied on accommodation, restaurants, car rental, attractions, driving licences, NIS and personal tax on the people who deliver the services.
Its a very simple scenario. People who do not travel to a destinaton do NOT generate ANY taxes for that destination.
So in my humble opinion, just because an airport has to be improved, you should not make it inhibitive for persons to travel.
Its also strange that our Governments do NOT apply the same criteria or rationale to expanding/improving our ports and insist on extracting a commercially viable cruise cruise passenger head tax!
One rule for them and a different one for the rest of us!
Wouldn’t it be more profitable to work on volume; open up the market, reduce airport taxes and make a lot of money by large volumes of people using the airport. It make good ecomonic sense to lower taxes and raise the volume of travel.
Well according to Darby this is an issue which can be dealt with at the country level. I would imagine that the islands like Barbados that depends on tourism should give it serious thought if for the reason you state of the trickle down effect.
But don’t we subsidize the product already any way to the travel agents etc? We are confused!!!
The blogmaster invites you to join the discussion.