Prime Minister Gaston Browne is calling for a shared subsidy model among OECS member states to safeguard regional air connectivity and stabilize airline service across the Eastern Caribbean.
Speaking during the Browne and Browne Show, Browne said regional governments must take a more proactive role in supporting inter-island travel, warning that small markets and high capital costs make it difficult for airlines to remain profitable without structured backing.
He suggested that member states commit to a minimum revenue guarantee or subsidy arrangement to cover shortfalls, while ensuring that inefficiencies are not rewarded.
“We cannot allow connectivity within the region to collapse,” Browne said, noting that reliable air service is critical for tourism, trade and economic integration.
The prime minister raised concerns about the aging fleets of existing regional carriers and questioned whether they would be able to finance new aircraft without government intervention.
He also pointed to approximately EC$140 million in dormant bank funds held at the Eastern Caribbean Central Bank as a potential source of capital that could be leveraged, alongside additional contributions from governments, to strengthen regional aviation.
Browne said the issue was discussed at the recent Monetary Council meeting, where leaders examined ways to deepen collaboration beyond monetary policy and pursue joint development initiatives.
He argued that a coordinated approach would help secure long-term sustainability for regional air transport and protect economic growth across the OECS.
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After LIAT 1974 LTD and its eventual failure because of the lack of regional support, I no longer think that we as taxpayers should be propping up struggling airlines. We shouldn’t be bailing out poorly run companies that over-leveraged themselves and expected never to see an economic downturn. We’re not a semi-socialist state, where the taxpayer takes all the risk but the private company takes all the profit. Companies fail because of poor planning and lousy business practices. It teaches stockholders and boards of directors to pay attention. It teaches CEOs to be responsible. More than that, it opens up space in the market for more innovative and better run companies to come in.
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