Trinidad & Tobago moves to end subsidies to Caribbean Airlines

Caribbean Airlines will no longer receive subsidized jet fuel after the Trinidadian government bowed to strong pressure from LIAT and Delta Air Lines as well as fellow Caribbean trade-bloc partners to cease the practice on the grounds it gave the local carrier an unfair competitive advantage. 

In his 2013/14 Budget speech to the island nation's parliament last week, Minister of Finance, Lawrence Howai, said the suspension of the USD500million subsidy would begin in October and come on the back of calls by US airline lobby group, Airlines for America (A4A), for the US Department of Transportation to reject an application from CAL to operate direct flights to and from Georgetown Cheddi Jagan airport citing excessive taxes, fees and the subsidy CAL was getting from its government. 

According to Amsterdam News, Fly Jamaica Airways was also singled out in the A4A motion, as it has also expressed a desire to service the Georgetown Cheddi Jagan to New York JFK route, left to CAL following Delta's withdrawal from the route in May. In his address, Mr Howai said his decision to rescind the subsidies was also meant to prepare CAL to survive on its own but noted that as 100% shareholder in the airline, should CAL find itself in trouble, government would necessarily have to bail it out as "it was too big to fail."

Source: CH-Aviation