Political Analyst Peter Wickham is questioning the long term sustainability of some of the airlines named publicly as replacements for LIAT in the event that it is liquidated.
Last week, the St. Vincent and Barbados Prime Ministers said there were at least six airlines who want to replace LIAT.
However, Wickham says history has shown that these airlines are only interested in domination by way of a monopoly.
“There is always a perception in a situation where there is a deficit that you can fill that deficit. We saw this with Stanford airline, Redjet and a number of other airlines that stepped up in the hope filing that bridge over the years. The idea is if you are in a monopoly situation you can charge people whatever you want .
“And I think more than anything else these regional carriers who have attempted to replace LIAT over the years, they have essentially piloted that model. Remember when Stanford was pushing his airline, his idea was you push over LIAT to control a market. You can dominate it and charge people whatever you want, but guess what, that failed,” he told state media.
He also stated that other airlines may not be able to match the kind of service that LIAT provided.
“I think a number of these other airlines which are coming up the operations are not really identical to LIAT. I mean the One Caribbean operation, if you look at the kind of equipment that they use they are not going to be able to essentially command the kind of routes that LIAT commanded with the frequency and capacity and so on and that really is the problem.”
He added, “so you looking to fill a breach for a limited period but I think the understanding is that there is a long term viability issue which I think a number of these airlines will not be able to match.”
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I agree with you Peter: “HISTORY HAS SHOWN that these airlines are only interested in domination by way of a monopoly”
A hope your man vice PM heard you loud and clear too. She and Yugge Farrell ex father-in-law
Why is this Wickham guy considered to be an expert in anything? He just says “stuff” and we are supposed to pay attention? Bring on some real experts. Thank you.
LIAT caved while these other airlines survived. Yet the analyst thinks they’re the ones that won’t have long-term sustainability? And that they should want to replicate LIAT, the company going bankrupt?
HA,HA,HA,PETRA WICKMAN AGAIN.HE IS AN EXPERT ON ALL MATTERS.HE REMINDS ME OF A PERSON WHO REFERS TO HIMSELF AS FORT KNOX.HE HAS ALL OF THE ANSWERS TO ALL THINGS ON EARTH.
But he doesn’t have the answer(s), only an opinion. He ain’t all that.
What Mr. Wickham failed to look at was financing of LIAT verse the market financing of private sector airlines. He claims that other airlines tried to be a monopoly and failed but was LIAT not a de facto monopoly.
LIAT being owned by some regional governments was able to get market access. LIAT was able to gain market share even at a loss as the regional governments / the tax payers kept underwriting loss after loss; year after year.
If LIAT did not have this financial government back up it would have folded. Therefore did the airlines in the past truly have a fair market chance to succeed against an inflated, over staffed government owned and unproductive airline.
Does limited cash resources at this time should be spent when for example 30% of Antiguan homes do not have a water supply. When the majority of the region’s hospitals And health care are below international standards, when the region’s agriculture sectors need development, when costal erosion is a problem and when renewable energy is critical for our region???
The kind of analysis that put LIAT in the grave.
What is his married name or is he the man of the house? Asking for abfriend
Good question Mel.
I understand what he is saying. A few of you strengthened the point. Even though governments subsidized Liat still wasnt as profitable. Now imagine a private entity taking up the challenge chances are ticket fees will be much higher and an even greater reduction in travel. Eventually they may see it as a fail venture.
Over the years I have implored on governments to reduce airfare taxes within the region which would have encourage inter island travel and thus resulting in a more profitable liat.
At least this time Wickham is right. Just as LIAT couldn’t survive despite subsidies these rinky dink airlines as Gaston called them can’t either without subsidies.
And if Gov’t are going to subsidize them then it would just be another LIAT.
1-Liat need to be bought over.
2- they need to dismantle the board CEO and all others so called top management.
3- keep the aircraft that liat has get a young business minded gruop as a management team to take care of liat if it is to work.
4/ most importantly the government’s of the Caribbean need to lower the taxes to give them the breathing space they need and we can’t continue to have the headquarters in Antigua.
5- Mr. Wickham you and you team has failed on most if not every analytical thing you all has presented this one is also the same.
This is laughable! LIAT failed over and over but was propped up and bailed out over and over with tax payers money by the shareholder governments! And LIAT is the biggest airline monopoly in the region doing exactly what you scuffed at Stanford airline for attempting, charging whatever they want! And how could you not address those ridiculous government taxes on Caribbean travellers? This is not an analysis, this is just babble!
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