Adrian Loveridge – Owner of Peach & Quiet Hotel
It’s always very difficult to write about LIAT with absolute authority, because despite the Barbadian taxpayer being the single largest shareholder in the airline, the public for years has been denied sight of any business plan or annual audited accounts. During the recent spat with a clearly dissatisfied customer, the involvement of Sir Richard Branson and the worldwide attention this generated, LIAT fought back by posting two videos on their website, which have been subsequently removed. Perhaps on reflection, it was thought that it was more productive to address the issues, ie: the complaints, rather than battle with someone that has indefatigably demonstrated they are masters of media exploitation.
What really surprised me in one of the videos, were the numbers quoted by the Director – Commercial and Customer Experience, who stated that the airline operated ‘approximately 100 flights each day’ and carried around ‘3,000 passengers daily’. According to Planespotters, LIAT currently has a fleet of 14 active passenger aircraft with various seating capacities from 37 to 68, but collectively totalling 685. So what immediately stands out is, if the overall numbers are correct, then the average sector flight carries only 30 passengers. That equates to what could be up to 19 empty seats on each flight overall, across the fleet.
Therefore, it is logical to conclude that unless LIAT entices considerably more passengers in the immediate future, and/or changes to potentially higher capacity point-to-point routes, that number of empty seats will rise. At least until all of the ATR72-600, 68 seater and the smaller ATR42-600’s with 48 seats are fully integrated into service and the Dash 8’s are retired.
LIAT’s chairman recently commented that there must be more tour operator involvement to ‘package’ flights and accommodation. Even though this has happened in the past with trans-Caribbean travel organisations like Going Places, I fully support his call. But LIAT must sit down with with the operators to identify routes, times and days of the week, where there is excess capacity and some room for ticket price reduction. Even if this is revenue restricted to ten seats per flight. I still believe this is an enormous untapped market, not just from the indigenous regional population, but also as an add-on for our overseas visitors, this despite of increasingly deterrent taxes applied by Caribbean Governments.
By putting the component parts, flights, accommodation etc., into a one price package, it helps break down the perception that the product is overly expensive. US$150 a day including flights and hotel, sounds better than $1,000 for a week. With Barbados taking the biggest risk in LIAT, our Government could take a critical lead in stimulating additional business for the airline, by removing VAT on the airfare element, at least in the softer summer months. Some of the ‘lost’ taxes could be re-couped by levying VAT on cruises originating in Barbados, which currently avoid any significant taxation. And the residue will be generated by the additional VAT collected on increased accommodation occupancy, car hire, restaurant dining, shopping etc.
For statistical purposes ‘we’ measure Caribbean arrivals as ‘Trinidad and Tobago’ and ‘other Caricom’ and it is the third largest market in terms of all our main sources. Regional visitor arrivals fell by 4,487 in 2012, when compared with 2011. So far this year (January-May), it has witnessed the single biggest percentage decline with 6,359 less visitors, or a staggering 240 per cent fall.
Relate that to average stay and spend and you start to get a grasp of the fact, that we are not addressing the problem.
Sister blog BajanFlick now updated!
“During the recent spat with a clearly dissatisfied customer, the involvement of Sir Richard Branson and the worldwide attention this generated, LIAT fought back by posting two videos on their website, which have been subsequently removed. Perhaps on reflection, it was thought that it was more productive to address the issues, ie: the complaints, rather than battle with someone that has indefatigably demonstrated they are masters of media exploitation.”
To even suggest that LIAT management had any reflection is really pushing it. The video in question was not only a disgrace in every artistic form but that it would have even been considered fit for human consumption shows the ineptitude that Caribbean people have faced all these years with this airline. The whole try at making a mockery of a man who worldwide has the best reputation in the airline business, who used LIAT for his ongoing passengers to their destinations (he should now buy a small plane and forget LIAT) and is therefore one of their large clients, was pathetic and downright rude. Bad enough that LIAT even had the gall to think that they are so huge, so big, so respected, so high-end that they could even consider to call Sir Richard Branson by his first name was a disgrace, challenging him to a ‘duel’ that if he lost he would have to lick the tail-end of LIAT using one of his own small jokes on himself (dressed in drag as a flight attendant) but using the words “we know you like it” so low and a disgrace to all Caribbean nations, its people reeling in shame. To have, through the first video, Leesa Parris in her capacity as whatever talking about the wonder of LIAT and all the good they do was stretching it – the best part being that LIAT found time to do this bit of patting themselves on their backs really fast admitting they were NOW beginning to look into the problems of the particular passenger. What? In case someone in the offices of LIAT is reading BU, this should have been a done deal before you sat yourself big and bold and opened your mouth Leesa. This letter had already made the rounds of the world before you all realized it was time to “look into it”???? And then all those lies. We know advertising carries with it a lot of these, but that whole video reeked of stretching the truth to limits that we should all be bowing our heads in shame over. Best airline in the Caribbean my arse.
Reflection? LIAT reflect on anything? Not one bit of it. Would not even know how that is done. LIAT only took all that crap down because people on social and other media saw it as all of the above, commenting and laughing at LIAT who already is seen as a waste of time by Caribbean and international people, openly crying SHAME. Lucky LIAT has not had a defamation of character suit placed on each and every head that had anything to do with that piece of s*#t as well as the airline itself!!! Well so far at least. I know that we as Caribbean people could do it and perhaps should. Defaming us under their banner can also constitute a court case surely.
What is most insensitive and shows the real lack of respect to those whose taxpayer monies keep LIAT in the air is the fact that heads have not rolled over this. Again, the talk is that LIAT’s top management, inefficient as they are, are there solely because of who they know and not the qualifications required to run an airline properly – big salaries and big perks accompanying them too. Here was (and still is) an opportunity to show the door to the lot of them and put people in there who have earned their positions because they are fully qualified, and if our people are not, then bring in who can. The nepotism and constant incest we have perfected as small nations must stop, and perhaps the time is now.
It is obvious that LIAT’s huge debt has created a serious drag much like the countries who are shareholders. There is no doubt we need LIAT for those who need to get around the islands whether for work or play. BU’s concern remain, why are the shareholders of LIAT limited to four countries but is appears obligatory it services about 21 destinations. How long can this airline, one has to say, continue under this arrangement?
Will Venezuela Invest in LIAT?
July 18, 2013 | 5:02 pm | Print
Above: a LIAT plane
By the Caribbean Journal staff
Venezuela has expressed an interest in investing in regional air carrier LIAT, according to Dominica Prime Minister Roosevelt Skerrit.
The Prime Minister revealed the interest during a press conference this week to announce that Dominica would be making another financial contribution to the Caribbean carrier.
“I believe it is an absolutely good move if we were to get Venezuela to invest in LIAT to provide LIAT with the much needed financial and technical support that it requires. It could also mean additional business for LIAT,” Skerrit said. “If we could get Conviasa to service flights from Brazil and from Venezuela and all the Latin and South American countries and transport them to a hub in the Caribbean and then take them to their respective destinations within the Caribbean then it means additional business for LIAT.”
The revelation comes a few months after PetroCaribe member states discussed the possibility of enhancing air service in the region, according to Venezuelan Oil Minister Rafael Ramirez.
“We are ready to make an alliance of both public and private companies and to establish connectivity in the PetroCaribe zone,” he said in May.
A LIAT investment could move that idea forward.
“We intend to continue these discussions with the government of Venezuela in respect to the draft agreement, MOU, which was sent for consideration,” he said. “There are some aspects of it which I believe are clear and straight forward but there are other aspects of it which will need further discussions among ourselves as the existing shareholders first and then to raise them with the government of Venezuela.”
LIAT is owned by a group of Caribbean governments, including Grenada as a minor shareholder.
LIAT’s principal shareholders include Barbados, Antigua, St Vincent and the Grenadines and Dominica.
The latter three are members of Venezuela’s ALBA Alliance.
We want our RED JET
Branson would not waste his time and energy suing a disgrace like liat, what they need to do is put their tails between their legs and ask him for some advice, i am sure he would be more than willing to comply…….the caribbean needs to get rid of their incestuous and nepotistic arrangements if they want to forge ahead in any sector.
We need to stop beating up on LIAT and put some ideas on the table about a viable business plan. We need LIAT.
Is there an airline in the world which is happily making money at the moment?
LIAT should not continue under such a foolish arrangement. I see no reason why LIAT should not be offered up to a REDJET-type of airline business. When a company is showing no profit and shareholders are not receiving anything for their investment but bad management, then the obvious thing to do is to sell same or go into receivership and let the receivers handle the take over from the highest bidder. And I did not say Caribbean receivership ’cause somebody’s tanty might get the deal for $1 although at this point ‘tanty’ might do a better job.
Maybe Sir Richard Branson would be the best man, who knows? Now there’s a *light bulb* thought.
One thing my silly brain doth know and that is that Caribbean integration and success (YES! THAT WORD CARICOM COMES TO MIND) is based on LIAT (or a LIAT-type operation with inexpensive fares) and they have had enough time to show their true colours and so far it more a blank canvas than a colourful image. Governments of the Caribbean have to understand that an island-hopping putter-clinker airline such as LIAT needs two (duh! rocket scientist at work here) things to make it work: the lowest airport taxes possible and the highest level of management.
LIAT currently serves many islands in the Caribbean which are not profitable which a Redjet (a scam) would flat out refuse to.
and we could ‘rap’ all we want, if we do not stop this airline’s foolishness NOW we run the risk of further deteriorating our Caribbean tourism image.
http://www.nationnews.com/index.php/articles/view/liat-rapped-over-delays-missing-shades/
BAD MANAGEMENT THE REAL STORY OF LIAT. LIAT needs to get its House in Order from top to Bottom all the money in the world cannot address That PROBLEM.
It does not take a rocket scientist to figure out that LIAT Problems are self made Efficiency stinks underscoring everything that is WRONG with LIAT.
Even though Gonsalves might have a point in regards to subsidies . the magnitude and combination of the problems are greater than the sum combined,
Venezuela ent a bad idea, think gas money.
But still. LIAT needs a shakeover. New management. New look. New name. Lowered airport taxes. And brilliant sunshine can reign supreme for Caribbean integration/business/tourism. But it cannot be done later…it got to be done now. Stop all the bullshit meetings, just get on with the job fast.
Not forgetting at least two cargo planes with cold storage access at the airport for the easy and cheap transportation of products/produce under the CARICOM banner of duty-free.
David, the possible investment of Venezuela into LIAT raises a number of questions. If such an investment takes place, would LIAT benefit from lower Jet A1 fuel prices under some sort of ALBA agreement. Trinidad and Tobago could hardly object as they are currently subsidising CAL.
As I understand Venezuela currently sells Jet A1 at international prices and only domestic airlines get discounted fuel for SELECT domestic flights.
@Adrian
Any investor will want a business plan which assures that inefficiencies are addressed.
David, ‘any investor’ – Does that mean our Government has seen and approved a business plan, ploughed in millions and plan to ‘invest’ more but refuses to inform that taxpayers of what that ‘business plan’ is?
The greedy governments in the Caribbean are taxing LIAT out of business. The need LIAT to bring travellers to their shores but they first priority for LIAT is tax generation and that is killing the airline. The next time you purchase a LIAT ticket check and see how much of the fare goes to the airline: the taxes cost more than the flight.
One fundamental matter that has to be addressed if LIAT is to move forward at all. The headquarters HAS to be removed from Antigua.
David you hit the nail on the head. Investors first check the balance books. Investors listen and check the negative contributing to the publicity of the airline. The most LIAT can expect from Venezuela is cheaper gas ?.. But I would dare say that an airline with so much negativism , Poor management , High debt nobody in their right mind would be willing to put their money in such a investment.
LIAT showed the world with that PR stunt released recently how poor their management decisions are made LIAT for sure does not understand the turbo dynamics that drives the engine and if a correction is not made immediately would be stranded on the tar mat indefinitely without getting off the ground or hope of making a major impact in the way of doing business that is successful in the way that is appealing to attracting customers and generating revenue,,
Taxes are a reality and in cases like airline the taxes are a combination of a multiple of charges , However it is the business of airlines to find ways around those charges that would not impact the customer and it goes back to its marketing strategy, People would complain if they are not receiving compensation in forms of good service or other marketing ideas that would boost up the psyche of the customer.LIAT has problems way beyond the Taxes ,however LIAT incompetency shines bright and it is a definite turnoff to customers and potential customers and investors.
LIAT has never been run as a business but as a social ministry….
Everybody beating up on LIAT (maybe deservedly so) but was Barbados always the principal shareholder in the entity? If not, when the decision was made why didn’t the powers that be insist on moving the HQ as a condition of its investment?
He who pays the piper calls the tune – the Trinidadians know that- Bajans seem to be slow learners.
A certain future coalition government of Barbados – of which the PDC will be a part of – shall Abolish All TAXATION in this country.
TAXATION is criminal mass theft.
It is evil, wrong, and destructive.
It is virulently anti-masses, anti-middle classes, anti-production and distribution, and anti-national development any where it is found in this world.
It is the major cause of this political economic depression that Barbados is experiencing at this juncture.
PDC
move its headquarters to where………. Inefficiency across the caribbean is epidemic , isn’t it why most or all govts are in financial trouble, The apple doesn’t fall far from the tree;,MOVE IT TO WHERE. any ideas PELTDOWN>>……I didn’t think so..
I was just informed, and how true it is is not know but would not surprise me and I quote: “LIAT’s inflight magazine needs to be looked into. Taken away from a Caribbean publisher that employs Caribbean people in their offices and Caribbean people to do their writings and photography only to be given to a London/African publisher based in England who uses English and other writers that require free-flights, free-accommodation + daily fees + fees for the contribution + fees for the photography all the way from there to the Caribbean.” If this is true: Good thinking again LIAT.
@Adrian
It is hard to imagine the CDB would advance 65million on the basis of an old business strategy which has shown not to work. Unfortunately our government who spends and commit our taxdollars say nothing to us. This too is a problem.
@ ac | July 22, 2013 at 7:43 AM |
“David you hit the nail on the head. Investors first check the balance books. Investors listen and check the negative contributing to the publicity of the airline. The most LIAT can expect from Venezuela is cheaper gas ?.. But I would dare say that an airline with so much negativism , Poor management , High debt nobody in their right mind would be willing to put their money in such a investment.”
So why is the current Barbados government committing the Bajan taxpayers to the continuance of such gross mismanagement and wastage of the country’s dwindling financial resources and compounding the national debt problem with no possible returns to show?
Why not insist of major structural reforms to LIAT as part of Barbados’ underwriting this massive additional debt?
But what can we expect from an administration that oversaw the Four Seasons fiasco?
How can Bajan shareholders aka taxpayers insist on holding LIAT to high standards of financial management and reporting when we continuously turn a blind eye to a similar “do-as-you-like” situation with our crucially important NIS funds that might just end up underwriting the LIAT investment?
Isn’t this a translucently white classic case of the pot calling the kettle black?
Caswell Franklyn | July 22, 2013 at 7:23 AM |
The greedy governments in the Caribbean are taxing LIAT out of business. The need LIAT to bring travellers to their shores but they first priority for LIAT is tax generation and that is killing the airline. The next time you purchase a LIAT ticket check and see how much of the fare goes to the airline: the taxes cost more than the flight.—————————————————————————————————–
CASWELL IS ABSOLUTELY CORRECT
Governments of Barbados have long been viciously violating, in the main, a fundamental principle in the material production distribution systems of this country, and, in the process of doing so (a la TAXATION), have been systematically more and more destroying ransacking, et al, the production and distribution processes and centres of Barbados, and the income and wealth generating and asset holding processes and potential of the masses and middle classes of this country.
The very axiomatic fundamental principle that the PDC herein writes about is: that entities must be able to present/give ( buy/sell) ANYTHING (good or service) to the relevant people (buyers/users) from ANYTHING (capital/assets/investments, etc) that is or can be used to get ANYTHING (nominal income/payments) from the relevant people as a means of advancing human society.
Whereas the private sectors have been able to fairly master and practice (with some exceptions) this holy grailite principle of social political interaction, and in consonance with the use of their human, resources, asset, money and market access capacities, to their relative benefits, the parasitic unproductive inefficient unrational government sector ( an entity itself) pretends – via the apposite words and actions of its putative political bureacratic administrative leaders and managers – that it is not able to do almost like the private sectors; with all those human, resources, asset, money and market capacities that it has been able to contract/use over the years, it has been failing to do like Cave Sheperd, Goddards Enterprises, Hinds Transport, etc., – in this sense – get income, revenue.
What raging egregious madness, indeed!!
And when the form of government that Barbados has refuses to live in harmony with and give due respect to such a fundamental principle – but instead continues to abrogate this principle, esp via the use of TAXATION, as a very uncooperative social entity, it will – if not eventually stopped from doing so by the majority agreeable actions of the politically awakened activated masses and middle classes – lead to the further and greater destruction of itself and the wider Barbadian society.
PDC
@ Georgie PORGIE ./.. What PROOF THAT YOU HAVE>>> WHEN WAS THE LAST TIME YOU FLEW ON LIAT AND FURTHERMORE ‘if” YOU DID FLY DID YOU REQUEST FROM LIAT THE PURPOSES OF THESE TAXES>
miller Your question is one of political grandstanding and yardfowl bating. no need for further comment from ac. Frankly ac not in the mood…….
Governments of Barbados have long been viciously violating, in the main, a fundamental principle in the material production distribution systems of this country, and, in the process of doing so (a la TAXATION), have been systematically more and more destroying ransacking, et al, the production and distribution processes and centres of Barbados, and the income and wealth generating and asset holding processes and potential of the masses and middle classes of this country.
The very axiomatic fundamental principle that the PDC herein writes about is: that entities must be able to present/give ( buy/sell) ANYTHING (good or service) to the relevant people (buyers/users) from ANYTHING (capital/assets/investments, etc) that is or can be used to get ANYTHING (nominal income/payments) from the relevant people as a means of making contributions to the advancement of human society anywhere.
Whereas the private sectors have been able to fairly master and practice (with some exceptions) this holy grailite principle of social political interaction, and in consonance with the use of their human, resources, asset, money and market access capacities, to their relative benefits, the parasitic unproductive inefficient unrational government sector ( an entity itself) pretends – via the apposite words and actions of its putative political bureaucratic administrative leaders and managers – that it is not able to do almost like the private sectors; yet with all those human, resources, asset, money and market capacities that it has been able to contract/use over the years, it has been failing to do like Cave Sheperd, Goddards Enterprises, Hinds Transport, etc., – in this sense – get income, revenue.
What raging egregious madness, indeed!!
And when the form of government that Barbados has refuses to live in harmony with and give due respect to such a fundamental principle – but instead continues to abrogate this principle, esp via the use of this criminal TAXATION system, as a very uncooperative social entity, it will – if not eventually stopped from doing so by the majority agreeable actions of the politically awakened activated masses and middle classes – lead to the further and greater destruction of itself and the wider Barbadian society.
PDC
The challenge many of the little islands have is that LIAT is the main or only airline that services the respective islands. To pay/support services offered by their airports they apply taxes. If not taxes subsidies?
AC
GP FLEW ON LIAT THREE TIMES LAST YEAR
FEE STRUCTURE WAS POINTED OUT TO ME BY A LIAT ENGINEER
WHEN I COME ON BU I PRESENT FACTS AND THINGS ABOUT WHICH I KNOW
@ ac | July 22, 2013 at 10:36 AM |
We are glad you are aware of your place when it comes to serious topics like the one in hand.
We don’t think it is possible for you to make an analytically critically and well informed contribution on such an important topic as LIAT restructuring unless you are prepared to apply a similar lens to the behaviour of the current administration in charge of this country’s economic and financial fortunes.
The ball is in your court. Either bring a similar microscope to bear or leave LIAT to others who can make a more objectively critical analysis and recommendations for improvement.
The problems with LIAT are indeed compounded by the obvious lack of political will by the Barbados shareholder government to take this bull by the horns and guide it in the vitally important direction it needs to go if the tourism industry is going to thrive and a papier-mâché Caricom is going to morph into a real CSME
Right, Mr.ac?
@Miller
What you neglected to add is that the lack of political will has straddled both political parties in control of government.
Georgie @ AC
WHEN I COME ON BU I PRESENT FACTS AND THINGS ABOUT WHICH I KNOW
remember YOU are talking to an audience some of whom maybe new comers to BU and are unaware of your contributions on BU. therefore as it is only Fair for one to ask follow up questions and not to take any one comment as gospel
However it would instructive only if not in fairness to LIAT for you to give a short breakdown on those taxes as explained to you . I meaning this is a serious relevation which contributes to declines in customer share of the market for LIAT
However I do believe that LIAT can compensate the customer by developing marketing strategies that would be complimentary to meeting customers standards and needs.
miller I told You I am not in the MOOD to engage in YOUR POLITICAL YARDFOWL GAMES. NOW IF YOU CONTINUE TO BE AN INDOMINABLE IRRITANT PEST. .I WOULD HAVE NO OTHER CHOICE BUT TO TELL U WHERE TO GO > AND THAT IS PUTTING IT MIDLY.
millertheanunnaki | July 22, 2013 at 11:07 AM
@ ac | July 22, 2013 at 10:36 AM
The problems with LIAT are indeed compounded by the obvious lack of political will by the Barbados shareholder government to take this bull by the horns and guide it in the vitally important direction it needs to go if the tourism industry is going to thrive and a papier-mâché Caricom is going to morph into a real CSME
miller are u now sticking both feet in your mouth .. after years of calling this govt incompetent. now to making the above statement believing that if the Barbados govt take the bull by the horn it would make a difference,! do I detect confidence ” on your part or a back handed criticism.. in every event the message you trying to get across is a good one ;however too little too late that message should have been resonated years ago. Now go back to the drawing board and start all over again… CONFIDENCE” inGovt to get something right ! well wonders never cease ..LUV IT!
@ ac | July 22, 2013 at 11:22 AM |
Well do it and see if the miller gives Sweet FA!
Let us see your true colours and you will see if the miller is afraid of the biggest idiot on this blog.
You sound like a poor pathetic broken defeated piece of shit just like your two-bit piss poor DLP administration that would soon be shitting itself when DR. Estwick crosses the floor and become an “Independent” honourable member of Parliament unless he is given what he demands that is the MoF position.
@ ac | July 22, 2013 at 11:22 AM | & @ ac | July 22, 2013 at 11:36 AM |
The above two responses of yours can only be that of a confusingly contradicting constipated mind in need of a good purging.
Why don’t you follow your own prescription for colonic comic relief and stick to your promised silence to remain a dumb ass?
Miller……..we gotta admire ac, all her DLP yardies (yardfowls) abandoned her to take the heat, ran away and left her stranded to face the music.
@Miller
Expect Your last response…. Bulls EYE caught with a deadly dose of mental madness emitting from your mouth . Physican heal thyself,,,,,,,Stupid!! You are Dismiss…….
@
TimeLongerThanTwine | July 22, 2013 at 6:20 AM |
Truth be told, after the letter was highlighted by Branson, LIAT managers came to the realisation that something should be done. This Leesa person went ahead and made the video, posted it without clearing it with management. When the furor broke out, that was why it was hastily removed.
Truth be told, if LIAT is ever to prosper, it is imperative that the headquarters be removed out of the corrupt hands of Antiguans. The company is top heavy and the managers are sucking the airline dry! Plus Antigua thinks that it has a right to be headquarters for LIAT and that LIAT must provide jobs for its people. It is a widely held view that many of its non Antiguan staff hates living in Antigua.
and to think that with all the economic challenges this country is experiencing and people like miller calling for govt to lay off people and cut spending Miller of all people would be asking the govt to get itself all tied up fulltime with this dead horse LIAT as if the govt not good enough trying to hold restraint…. Miller U have been caught wid yuh pants down pissing on the sidewalk in broad daylight…….PHEW!
BTW prodigal I speak for ac I don’t need cheerleaders however apparently u never miss a beat of anything I say.
@Prodigal
You are spot on.LIAT is seen as an Antiguan airline operating on the backs of foolish Bajans,Vincies,and now Dommies(almost said Dummies but they are not).Trinidad once owned 90% of LIAT and they were exceedingly arrogant to Bwee which had that controlling interest obo the Eric Williams government.
Bwee eventually got out of the partnership.Since then LIAT resisted moves by
certain entities which wanted the operations ,administration and marketing relocated to St Lucia and Barbados.That decision would be political suicide so my advcice to the other Caribbean shareholders is to read the riot act to LIAT management and assert control of the carrier.Failure to do that is to condone the bad management practices and the unwieldy staff structure that combine to guarantee repeated financial bingo with taxpayers’ monies.
@ Prodigal Son | July 22, 2013 at 12:15 PM |
For such a small airline LIAT has massively large overheads sitting primarily in that Antigua-based HQ.
It is expected that an airline that operates within a multiple-landing business environment (short hops and stops in multiple jurisdictions) would be challenged with unavoidable operating and maintenance costs. That’s an acceptable business cost limiting factor it must operate with as a reality.
An aircraft not in the air is incurring cost not generating revenue. But to saddle that same carrier with inexplicably excessive administrative costs mainly hidden in an unproductive HQ is a recipe for that airline’s congenital poor performance, financial and other wise.
An overmanned HQ answerable to no one in terms of justification for its inappropriate location given the airline’s operational configuration. A Head Office burdened with unjustifiably costly duplicating managerial supernumeraries with strong political connection and whose measurable contributions to either operating efficiencies, customer satisfaction or the airline’s general marketing and PR image building are way below break-even point.
BTW, Prodigal, have you heard about that strong rumour circulating in both political camps of a pending political bomb about to explode with possible massive damage to the ruling administration?
It seems that there could be another falling out with the “very pissed-off” individual crossing over to Jordan to sit in an unoccupied chair marked “Reserved for a Temporary Independent”.
We shall see if Fumble who has been given an ultimatum by the Agricultural Doc will stand his ground and allow Stinkliar to continue to call the shots in the MoF
This monkey-manned Cabinet is turning into a theatre for laughs with its regular comedy of errors on show.
@ac
“Any ideas Peltdown? ……….I didn’t think so.”
Thanks for giving me the chance, ac! There are only two obvious bases for LIAT, and those are the two hubs, Barbados and Antigua. It would appear to me, (and I’m always open to having you correct me ac, given your superior knowledge of airline operation) that the routes out of the Barbados hub carry more volume, and despite the fact that Barbados is not really well known for its level of service, it is still many times better than the service offered by the Antigua staff of LIAT. This doesn’t mean that there won’t be a hub in Antigua, just that management, operations, and engineering will be based in Barbados. I don’t need to explain further, Miller says it all in the above post.
Yes, miller, I have been hearing of some royal rumbling, we will wait and see.
Here is a joke for you. The lady in the DLP election bus ad went to a “Q in the Community” recently and she was booed from the place. The people there lighted into her, she was so ashamed, she ran for cover. They told her, “you are the reason the DLP got back in power and now have we suffering”.
Ha, ha, ha!
Using Barbados as a hub, the overall cost to Barbados plus supporting the airline would not make sense, Barbados is the biggest shareholder and it makes sense to stop there . The plan was for those in Caricom share bit of the Burden expecting Barbados to supply a bulk of the fiancés and then have to sink more money in management and marketing is a recipe for disaster
@ ac | July 22, 2013 at 3:35 PM |
You are just one little confusingly convoluted jump-up piece of intellectual shit.
We just don’t get what you are arguing in your schizophrenic-style contribution.
Sort your thoughts out and come back to the debating table.
Just another case of an idiot pretending to be wise!
are you talking to me… I don’t think so you are the one asking for govt take control of liat after YOUR stance on Govt unable to grapple with the economy and the govt is inefficient, ..Now all of a sudden you at the table presenting an opposite formula as to what you have been saying for years. Let other caricom countries figure a way forward, Govt of Barbados has enough to worry about .if Barbados can give valuable input that is all. Why should Barbados have to fix another broken horse . Afterall the govt was handed one back in 2008 .Enough is Enough. we might be major shareholders but we are not magicians. You are so frustrated that you sound drunk. stay off the liquor too early in the day.. NEGRO….. manage my a.ssss it cost money……..You always asking where is govt going to get money from. Now the same question I posied to YOU….Jacka.sss. Wunna get up in here saying one thing and n expecting another.. next YOU miller when the Sh..t hit the fan and this new formula don’t work out You would be bellyaching and blaming govt….. for all of LIAT problems the same way YOU blame Govt for all the past problems they inherited of the past 14 years,
I have a proposal for You and all BLP yardfowls put wunna money where wunna mout is and BUY LIAT and let MAM manage it.
Miller…………i though 14 + 6 =20…………..correct me if i am wrong.
Should read:
Miller……….. I thought 14+6=20
govt already put a cuzillion dollars trying to fix another broken horse called Tourism. miller how many broken horses do YOU want the govt to Fix at Tax Payers expense. Hey while you at the drawing board figuring out how to cuss me and show disrespect to a Woman….. Make a list and stand at the bottom steps of the parliament building on Wednesday and hand it to Sinckler maybe he could find room in the budget just to make your dead a/ss happy while f..king the taxpayers under the guise that the airline needs Barbados to manage it also give a copy to the do nothing opposition…who are modern day free loaders like those public workers You talked about.
@Miller 3.46pm
Your comment on ac’s contribution is also spot on.I say no more! Meanwhile as an unrepentant English Grammar School educated boy,paid for by his hardworking parents right here in Buhbaydus,I say all hail to her Brittanic Majesty and congratulations to William and Kate on the birth of a son…never mind the irrelevant and asinine comment of David Ellis today on Brasstacks when Mz Winnie raised the subject.Class is class Ellis.You ‘n got none!!Y’ass!
I agree with you Gabriel. David Ellis acted like a real jackass when Winnie mentioned the royal couple. He is getting on my last raw nerve these days……an opinionated jackass.
I laughed y head off last week when a Dem told him he should not talk as he did not vote….Ellis lighted into the man. Not that i agreed with the Dem as it is every man’s right to vote or not to vote. Ellis is just plain disillusioned with the Dems and if you monitor his tirades…….he criticises the government but would always go back to …………….this id not just get started…..these problems go back years!
Dems will not take responsibility for anything. Blame the BLP!
The bottomline is that shareholder governments namely – Barbados, Antigua, St. Vincent and Dominica – need to update their respective constituents what are the conditions of the loan given by CDB for 65 million.
How long has that gentleman Dr. the Hon. Jean Holder been the chairman of LIAT?
@Nostradamus
Since Adam was a lad.
Actually when he resigned as Chairman in 2011 he had served 7 years.
LIAT has a very poor reputation among both locals and visitors to and from the Caribbean Islands. Their flights often operate irregularly, with inconsistent arrival and departure. They may depart even if all ticketed passengers are not on board. Baggage is often misdirected or not loaded entirely. They are known for having very poor customer service, late departures, flights cancellation and their staff is thought by some to be surly and unhelpful. These problems have been exacerbated with the 2010 strikes – with many flights canceled and passengers stranded and unable to receive refunds. The management and head operators of the airline makes it clear that they are not responsible for any flight cancellations or stranded passengers.
source Wikipedia…
@ ac | July 22, 2013 at 4:45 PM |
So you are playing the gender card now are you? I was of the view I was responding to Mr. ac, not Ms Idiot. What will you do next? Play the “Negro” card of spade?
If you want to find out how important tourism is to Bim and the vital role LIAT plays in its regional connectivity then ask your PM in his recent justification for Barbados underwriting the loan from the CDB for the same airline to lease/purchase the recent additions to the fleet.
Now ac, can you help us figure out the following pieces of confusion you so stupidly repeated in your hallucinating stupor @ac | July 22, 2013 at 4:28 PM
“I don’t think so you are the one asking for govt take control of liat after YOUR stance on Govt unable to grapple with the economy and the govt is inefficient,..”
“Govt of Barbados has enough to worry about .if Barbados can give valuable input that is all.”
“Why should Barbados have to fix another broken horse.”
And most telling of the lot of conflicting intellectual madness.
“..we might be major shareholders but we are not magicians.”
Who do you expect to look after your baby seen as a public good and at the same time major breadwinner?
Well, if you can’t then put it up for adoption (privatization) since the other parent(s) do not seem to be interested in taking on such responsibilities.
I have not flown on liat for over 20 years, just the disrespect and rudeness of their employees is a huge turnoff, even more so than their bad service.
I have nothing to explain to YOU, don’t try me .
@David | July 22, 2013 at 11:11 AM |
“What you neglected to add is that the lack of political will has straddled both political parties in control of government.”
No, David! I refuse to concede this as a salient point worthy of repetitive reference. Retrospective analysis has it worth but loses it decisional value after a while which has been long passed.
The shareholders (residents and taxpayers) of the public company called “Whither Barbados” elected in 2008 and reelected (by suspect means) in 2013 a Board of Directors and Management called team DLP to right all the wrong things that kept back Barbados from progressing and to work steadfastly in the future the economic interest of its shareholders so as to return a social dividend reflective of its investment in human capital.
Now when are the shareholders going to reap their return either on an accrual basis or immediate dividend payout like firing the lying misfits foolishly chosen by the “sweetened” voters in a rigged quinquennial mass meeting of the malleable sheep?
LIAT Chief Executive Officer (CEO) Ian Brunton
. ST JOHN’S, Antigua – LIAT Chief Executive Officer (CEO) Ian Brunton has added his voice to the many that have come down against the new Airport Authority Administration Charge implemented just this month
Speaking on OBSERVER Radio’s Big Issues, Brunton said as a result of the airport administration charge, taxes now represent between 30 and 60 per cent of LIAT’s airfare.
“As we go to our shareholder governments, we are pointing out to them that 30 to 60 per cent now, since the Antigua increase on the first of November, of the air fare out of Antigua is in fact airport fees and taxes,” he said.
The CEO said he sympathised with governments that need the revenues to run the air travel infrastructure, but a new collection model needed to be devised.
“We have to find a different model, a different way for them to get the revenue to run the infrastructure without having to directly tax the passengers on the ticket,” Brunton said.
“What people don’t realise is the airline collects those taxes and it costs us administrative fees to collect them. Also it costs us on the transfer of funds to governments because we collect them in local currencies and transfer them in foreign.”
Brunton said the collection of the tax is making it hard for the airline to operate as the ticket prices are far too high.
“It’s well over a 20 per cent drop in demand now than it was four years ago, and it is continuing,” he added.
When the tax was first announced both the Antigua Hotels & Tourists Association (AHTA) and the Airline Association penned a letter to the prime minister and minister of tourism expressing their concern that any additional tax would negatively affect tourist arrivals to the country.
On November 1, each departing and arriving passenger began to pay US $37.50 for the Airport Authority Administration Charge.
The tax replaced the Embarkation (Departure) tax and the Passenger’s Facility Charge. Passengers pay the tax when they purchase their tickets.
The Embarkation Tax was US $20 for Caricom nationals and US $25 for international passengers; and the Passenger Facility Charge was US $25.
Caricom nationals travelling into and out of Antigua now pay US $30 more in taxes as the administration charge stands at US $75 per round-trip.
Prime Minister Baldwin Spencer earlier stated that the tax was fair and dismissed claims that it will negatively impact the tourism product.
Prime Minister Baldwin Spencer earlier stated that the tax was fair and dismissed claims that it will negatively impact the tourism product.@ WHAT AN ASS….. LEAVE THE PLANES ON THE GROUND , TAKE A BOAT OR STAY HOME AND USE SKYPE.
Another major cause of the political economic depression that Barbados is going through at this juncture is as a result of the operation of exchange rate parity regimes that Barbados has with some major international currencies, especially the one with the US Dollar.
It is the operation of these parity regimes that is helping to increase substantially the real actual cost of use of money (local) to our incomes, payments and transfers esp from the perspective of the importation of goods and services into this country.
Let it be known too that it is the operation of these parity regimes that is helping to increase tremendously the real actual cost of use of money (foreign) to our local incomes, payments, and transfers esp from the said perspective of the importation of goods and services into this country.
It is the operation of these parity regimes and their severe impact on the real actual cost of use of money (local/foreign) to our local incomes, payments, and transfers that in turn have severe and damaging effects on the overall potentiality and actuality of Barbadians to export goods and services to many other places.
A certain future coalition government – of which the PDC is a part of – shall ABOLISH all exchange rate parities with the Barbados Dollar.
Out of so many other things that will happen locally/internationally as a result of such a progressive visionary policy – there is one thing that will happen and it is this: that a domestic importer of goods and/or services will simply be required to apply to a proposed National Currency Board for an amount of foreign exchange in the international currency the particular goods and/ or services transaction will be denominated in to give the foreign exporter to Barbados of such goods and services.
PDC
@PDC
What happens if the Bajan importer has to pay a country like Guyana which has a currency with no easy recourse?
By applying to a central body removed from the banking system how do you expect it would impact timeliness of transactions and business confidence?
On the subject of confidence the routine delays experienced by LIAT customers, negative ROI for the FOUR shareholders out of all Caricom, an inefficient business/service culture MUST be solved. This is 2013, we have to stepup our game and stop this political poppycock.
Baldin spencer is being indigenous ,he agrees with the caricom govts needs for revenue but openly he says different,,However instead of criticising he and board management could have and should have found ways to put plans in place that would have taken soften the impact that these charges would have taken on the customer pockets, how about a free miles plan. Liat does have a big breakdown in its management team who are inept and void of any ideas except to place blame. A good Management team would have used brains in creating ideas that would have given customer certain options and preferences which are complementary as to the servicing of customers. if they have none create a mailing list and get customers input by email. it will cost them nothing.nobody wants to give and get nothing back in return,
the blame game by spencer opens a glaring hole of incompetence on his part. customers would adjust but doing nothing to compensate them is inexcusable. he should be fired…
What have you been smoking this morning ac? Your post makes no sense. Unless, of course, you were referring to Ian Brunton and not Baldwin Spencer, in which case the word is “disingenuous” not “indigenous”! Even so, he is not being disingenuous at all – he’s telling it like it is. No matter which way you look at it, you can’t get around the huge portion of air fare that is made up from taxes. Which is more for the shareholder governments – what they earn in taxes from LIAT, or what they pay in subsidy? A simple calculation is all that is needed.
AC……”Baldin spencer is being indigenous, he agrees with the caricom govts needs for revenue but openly he says different”
AC I am no grammarian BUT you are taking this too far and exposing yourself too much.
Indigenous…when a person or thing is from a particular country or region
disingenuous….. not sincere; lacking candour
Did you attend Cave Hill?
OK>disingenuous However I don’t not believe him. when he says he disagree. For one he should know how much it takes to keep an airline up and running and in good condition, Except for that one reason which he gave which is self serving . He knows that the financial aspect is bigger than what he states and if he is so concerned about the impact that it cause or backlash from customers he and board of management should step up to the plate and offer some remedy for the customer, have he done so ,lNO. instead gives a reason which does not take a rocket scientist to figure out. How about ideas or suggestions to soften the landing before LIAT falls from the sky . That is what management job is all about,
Island gal……………I am not the problem……. Stay FOCUS …………LIAT! please…..I forgot to take my meds ….
Yeah peltdown it is not as simple as that.; you can’t just summarized the problem by looking at one problem and again if those taxes are a problem then something or somethings in form of incentives must be found to address this problem talking and crticisng is not the answer , I believe that those big Heads command big bucks to do their job and there is no way of getting around it. Excuses are not the answers
@ islandgal246 | July 23, 2013 at 8:19 AM |
Do you see why the miller continues to struggle with ac to get her to even understand the basics far less attempt to deal with topics like the one in hand?
We should not give up totally on the poor soul. She is trying to move away from cussing OSA and blaming the BLP for all the problems in Bim today. But instead of offering objective critical advice to her DLP administration she behaves like an ostrich and avoids the source of many of this country’s homegrown problems by taking pot shots on entities like LIAT, the still raging International recession, the credit rating agencies, IMF, Britain, Detroit and even the lazy ass civil servants.
We shall soon see how ac reacts when this DLP administration is faced with a possible no-confidence vote in the totally lost PM and his dysfunctional Cabinet.
But let us not hold our breath. Such a motion would hardly come before the House under the aegis of the Current Speaker.
Don’t be surprised if sittings of Parliament are deferred or even suspended hoping the heat subsides and the hotheaded Dr. Estwick does not lose his ‘cool’ and demands his pound of flesh of the promise made to him by the same Fumble from Integrity Court for his platform support during the last general elections.
The PM might have to swallow his pride to save his moribund administration from Parliamentary defeat and fire Stinkliar. Let him go to the back bench or cross the floor and join the clergy to become a priest. The country would be better off for it.
Inadvertence,
It should have been ‘of which the PDC will be a part of’.
David,
Two things.
If the Guyanese exporter requires that the Barbadian importer use US dollars, or Britiish pounds, Euros, or Chinese yuans, to at first represent his remuneration, the chief monetary authority here in Barbados – and this will be at a reasonable time after the coming about of this certain future coalition government – the National Currency Board (NCB) – must make sure there are enough available quantities in numbers of these currencies in stock in or that can be accessed via the external banking accounts of Barbados, that will allow the Guyanese importer to ultimately get his remuneration; as first represented in which of the said US Dollars, British pounds, Euros, Yuans, from the Barbadian importer via the NCB and the relevant others, has to be later then substituted by the chief monetary authority in Guyana for Guyanese dollars which ultimately represents his remuneration.
PDC
http://www.travelweekly.com/Caribbean-Travel/Incentives-help-lure-film-crews-to-Caribbean/
Barbados???
David,
This proposed National Currency Board will be the chief monetary authority in Barbados.
It will replace the Central Bank of Barbados as the present chief monetary authority in this country.
The advent of this National Currency Board will signify substantially the undiluted tremendous emphasis that will be placed on money and monetary affairs and policies in this country at the time of such a coalition government.
The Central Bank of Barbados’ dimunition in the pecking order of financial institutions in Barbados will be certain under such a government, as that it has long been helping to bring about these political economic depressions in Barbados, by emphasizing those particular backward wicked, even destructive, fiscal and economic policies, over the search for truth in the sanctity of the implementation of the right money and monetary policies for Barbados.
The Central Bank of Barbados has therefore in this modern era been helping to create deep-seated hopelessness, distress amongst much of the populace in Barbados and has also been helping to bring about a new level of wretched persistent poverty in this country.
It must be downgraded.
PDC
AC what fcuk are you doing? Please take a double dose of your meds!
today my computer is giving me problems I am out of here
as they say garbage in …garbage out! LOLL
oh my god I am having tech problems OOPS! SORRY!
@ David
🙂
Man Enuff is Enuff….
…time to ban ac ….fuh real
LOL Ha Ha
@ ac | July 23, 2013 at 10:25 AM |
You damn liar; computer problem what!
Stop blaming the blooming machine. It’s just your mind going bonkers to the extreme.
A viral infection like the bug of retribution is attacking you. You just have a bad case of dirty foot in your mouth disease causing you to vomit pure unadulterated nonsense.
Write something commonsensical and of substance and the bug would go away.
Now here is a possible cure for your runny mouth. What would you say if your “worst favourite “DLP politician Dr. Estwick decides to pack it in with the DLP and moves across the floor?
It seems he is tired being used like a doormat, abused like a mop by the PM and discarded like a used condom.
Sometimes being a ‘glorified’ team player can turn out to be a case of pure exploitation by an exceedingly weak leader who has not a clue of what is is going on in his administration especially in matters of public financial management.
It’s time he Estwick breaks for himself and put the PM in his selfishly disloyal deceitful place. He needs to tell the PM that it is either the MoF after the budget or look across the floor to see an ‘Independent’ with the power to bring down his fumbling administration without a shot being fired by Jonesy the potential head cracker and Massacre.
ac………….now i am laughing, hee, hee, hee.
David you please remove that awful piece of garbage AC posted?
@ David
Islandgal said…
David you please remove that awful piece of garbage AC…
***********
…CAN you P L E A S E????
LOL
ac…Mrs Malaprop’s big sister!
ok. island I agree, however I have a virus which I am working on pops up all over the place, now it might be awhile before it is fixed,
Any how in that last comment many pieces were missing behind the madness in that post..there was important info in regards as to how incentives are critical in luring customers to compensate for the additional charges .. Inasmuch it was implemented by govt there was still ideas to garnish that any airline could have used, LIAT is not alone with having to pass Taxes and additional charges to customers I noticed that charges in the USA can be as high as US 60 and more, not including baggage fees and other miscellaneous fees . But airlines knowing the fall out does not sit down and do nothing and blame govt like LIAT, LIAT has a bunch of FAT LAZY CATS who would rather criticize than find ways around the problem that would benefit the customer and LIAT, they all should be FIRED,
BTW DAVID my apologies and delete the earlier post, I know the BLP yardfowls enjoy beating up on me and that was another stick, However ac not the Problem .
@ Anunnaki
“@ ac | July 23, 2013 at 10:25 AM |
You damn liar; computer problem what!
Stop blaming the blooming machine. It’s just your mind going bonkers to the extreme.
It would appear like her “cuntputer” acting up she may need a technician to go over and take care of her problems.
Oh lawsie, dere goes de buzzer pun de intercom, i am being summoned.
Sage, when she went way heah de udder day she see dis intercom ting in Radio Shack and “bring it back heah fuh de house so when i far in a nex room she can let me know she calling me!!”
I waitng fuh a few weeks to pass and i gine put some drops uh water in evey one uh dem, watch me, evey time is sitting down “bzzzzzzz” and den “are you dere pookings?”
Man it got me pun edge. Al least doah it ent got nuh camera
so what my computer acted a little crazy not the end of the world , had a lot of big mout mcguffie asking to ban ac. cud dear! any how it cost me a couple hundred dollars to fix it .No big deal however i requested quality not a half a.ss technician with a manual who was having on the job training but as luck would haveit the company sent me such a person which I did not hesitiate to let my feelings know and demanded that the company send me some one who was prepared to do the job cause after his dilly dallying. my patience ran out and I showed him the door pronto. . which brings me to my favourite airline LIAT , with their stinking management team. boy would I like to get a chance to show them the door, them guys wouldn’t last with me for I day,,. why should cutomers suffer,
Commentary: Saint Lucia’s pitfall to stagflation
By Melanius Alphonse
With the ever increasing deficit, money supply squeeze and runaway inflation, the Saint Lucian economy continues to recoil at a very rapid rate.
Despite such, the Kenny Anthony administration continue to advance partisan base policies that are designed to benefit party supporters, while inflating the national debt.
melanius_alphonse4.jpg
Melanius Alphonse is a management and development consultant. He is an advocate for community development, social justice, economic freedom and equality; the Lucian People’s Movement (LPM) critic on youth initiative, infrastructure, economic and business development. He can be reached at malphonse@rogers.com
To many, what is currently taking place, is a stark reminder of what happens in a “winner takes it all system”, where the government of the day becomes preoccupied in creating jobs for its inner circle, while putting on the pretence of working in the interest of the nation.
In fact, no matter how cleverly the Kenny Anthony administration pretends to work in the best interest of the country, and the viewpoint that it is “unpatriotic” to be critical of his administration “efforts” to create welfare jobs, there is a line of truth that no one can ever debunk.
No government of Saint Lucia has ever awarded a job to anyone if it wasn’t first measured in political dimensions. In order words, your experience or ability to perform on behalf of the nation isn’t worth much, unless it is tested in terms of partisan loyalty. Meanwhile the economy is in freefall, the government can’t pay its bills and crime is on the rise.
It is this sort of mindless governance that turns a blind eye to quality and substance, and embraces instead an outdated system that makes partisan loyalty a prerequisite to contribute to risky economic policies that kills businesses, jobs, and investments.
The alarming number of families that are having difficulties in meeting the cost of basic necessities is just the tip of the iceberg, not even having to factor the cost of paying WASCO and Lucelec utility bills. But this administration does not seem to understand the effects that partisan base policies are having on economy performance.
This approach has already contributed to a higher unemployment index that is compounding the inflationary rate of 4.2%, while the economy continues to contract at 0.8%. The irony in all of this seems to be no serious attempt at correcting the situation.
The over-reliance on the tourism industry is at dangerous levels. In fact, not only has the Kenny Anthony administration misled the nation with the notion that his current policies are intended to advance eco-tourism, sports, medical and the creative industries, rather it is indeed a very shallow approach, which will not yield much for the nation in the absence of a national eco-system plan, supported by meaningful legislation, with the ability to withstand the competition from similar markets.
Meanwhile, development issues, the promotion of industry and product development are short-changed due to policy uncertainty and the authorities’ inability to increase revenue without hurting the poor. This proficiency is not only lacking, but is also compounded by the size, and cost of a welfare administration that continue to increase the national debt.
Perhaps the time has come for an in-depth plan to outsource non-core government services, and to seriously consider the intercession for P3’s (public private partnership) with global partners, and the proper divestment of non performing state assets to raise capital.
The key to successfully launching such is institutional strengthening; packaging and promoting the ease of doing business in a low tax and business friendly environment, with a high efficiency rate in achieving production targets and timely project completion.
Having said that, although there are moderate levels of investments and projects that have been completed on-time, economic output is not flowing at a significant level to inspire economic strengthening. As a result, this continuous slowdown is impacting Saint Lucia’s development adversely.
As usual, the Kenny Anthony administration does not know in which direction to go and has to embrace PetroCaribe and the Bolivarian Alliance of the Americas (ALBA) in search of the Hallelujah moment.
Of course this will turn out to be another misguided decision.
PetroCaribe and ALBA are political organizations with agendas designed to redirect resources for political gains. These agreements do not advance mutual economic development. At best, the program will defer Saint Lucia’s indebtedness and subsequently compound adversely its credit ratings, and accessibility to global capital.
Remember, it is common knowledge that a change of government in Venezuela would end the PetroCaribe programme in its current framework, thus leaving Saint Lucia with a huge bill to settle in short order.
Therefore, what will a future of increasing debt, low industry output; rising inflation and weak credit ratings lead to? How will voter pandering, shallow decision making and policy uncertainty play out in a comatose economy?
Well here’s the verdict!
The continuous level of high inflation should be a cause of serious concern to all. If the production of goods and services continues below the demand output, or they are too expensive to produce or deliver, then the economy is not growing in any way. Moreover, when prices are pushed up by greater demand, this is characterized in economic terms as “demand pull” inflation. If prices rise because costs go up, that’s called “cost push” inflation. Regrettably, Saint Lucia is in on the perimeter of both if there is no change of course.
This is very risky business, the result of which is “stagflation” — the combination of economic stagnation and wild inflation. Further, if interest rates rise and economic validity falls; business sales and services will drop. This means much higher prices, which will lead to higher interest rates and “depressflation” — the worst economic conditions combined with high inflation.
Indeed, every effort should be made through collaboration, the sharing of concepts, principles, and a set of actions to turn around this possibility. But, the unsavory blend of decision making seems to be a dress rehearsal for the Kenny Anthony administration for a greater politicization of the economy.
Sadly, while their politically based economic strategy does benefit a number of persons within their inner circle, the same can’t be said for the vast number of Saint Lucians (20% and rising) that are unemployed.
Currently, things are not looking good. People are falling behind, not only socially but economically. What once seemed like a promising future following independence on February 22, 1979, has now turned into a catastrophic situation where Saint Lucians are unable to support a quality standard of living.