THE NEW TODAY - July 24th, 2010

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Chairman of the LIAT Group of Trade Unions, Senator Chester Humphrey is championing the cause for there to be a single regional air transport. Speaking to media last week Wednesday, Sen. Humphrey said there is certainly a case for the region to have a single carrier since the regional unions within the LIAT operating system believe that the nature of inter-regional travel and the associated cost make it uncompetitive to have competitive airlines.

 He recalled that it happened before with Caribbean Sun and Caribbean Star competing with LIAT, and it resulted in the near collapse of the competitors. “What we need to do is to have a regional airline that is a monopoly but whose pricing mechanism is not monopolistic”, he said. “To keep the price of air travel within the region within the reach of the vast majority of the Caribbean people requires a subsidy for the airline. There is no two ways about that, but the airline must also, at the same time, achieve certain proficiencies,” he added.

 The Grenadian trade unionist admitted that inter-regional travel is expensive. and even at today’s high rates, LIAT is just breaking even. According to Sen. Humphrey, just about 40 percent of the ticket is made up of dues and taxes. Earlier this year the Trinidad-based Caribbean Airlines merged with Air Jamaica in an effort to bail it out of its financial woes. Sen. Humphrey said there has always been talk about the Trinidadian airline merging with LIAT, but at present he has no information to say if that is currently being pursued in a serious way.

 He also expressed concerns about the planned redundancy of staff in the regional city offices. He said he did not believe that this is about to take place as a result of any merger arrangements unfolding between LIAT and Caribbean Airlines. Close to eight offices that are operated by LIAT in the region are earmarked to be closed by the end of August. As a result approximately one hundred workers would be sent home.

 Speculation is rife that the plan has been put on hold following opposition from the regional trade unions. There are unconfirmed reports that the three-shareholding government, Antigua, Barbados, and St. Vincent & The Grenadines were seeking exemptions for their workers.

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Lloyd   |129.11.77.xxx |2010-08-03 08:05:24 continuing from below.......................... 4) Block working hours for ground handlers or contract that part of the service out to a dedicated ground handler. As they would have already being handling other airlines they would have a higher rate of operational efficiency and equipment utilisation moreover you can hold them accountable for lapse in service standards. 5) And finally, get rid of some layers of top management. Do you really need some many managerial and supervisory layers? Getting rid of layers help in two areas: a. Reduce cost b. Enable staff and customer feedback to reach the correct personnel and be action quicker. This can have a fundamental impact upon staff morale and possible gains in productivity and operational efficiency. 6) And finally, the use of IT. I left this for last because introducing IT is not a competitive strategy but rather an enabler to the companies’ strategy. Having a computer does not instantly make you more profitable, it is the ability to use that device to effect efficiency, effectiveness and overall profitability. The author is a Researcher and Lecturer in Strategic Management and Corporate Social Responsibility at the University of Leeds (UoL) UK. bn08lba@leeds.ac.uk Alleyne, L B Quote 1   1

Lloyd  - Humphrey is having a laugh ... Monopoly carrier   |129.11.77.xxx |2010-08-03 04:08:21 I cannot see how the need for a single carrier would benefit the airline sector. That is a new concept “a monopoly without monopolistic powers” what is the enticement to compete? It may as well be nationalised!. Competition is good, it aid innovation and improve service standards. The Caribbean has the capacity to have up to 3 regional carriers all functioning profitable. Humphrey’s indication of a monopoly carrier begs the question of who will police their powers, and who will pay for the policing cost? I guess he is speaking on rhetoric and has not thought out his idea properly. In contrast to Humphrey’s analysis I wish to offer my insight. 1) Better network coordination and planning. Regional airlines need to synchronise their schedule better with that of the major carriers, regional carriers should be the hoppers for tourist in the smaller islands. 2) Reduce overhead – Do we really need meals on a 30mins flight? And does a 37 seater really need two flight attendants? Getting rid of the on-board catering facilities save both weight and personnel time. The box juice provided cost about $.50 USD each plus adds to the airline’s fuel weight thereby reducing its capabilities to max its payload. 3) Changes to equipment – What is the efficiency savings between a Dash 8 and a B737 or A319? How much more seats can be sold? You can get more people onto a larger plane and begin to enjoy economies of scale and scope in operations quicker. This savings can then be passed on in the form of lower fares, enticing more customers to travel. This then help operators to get toward full capacity and optimisation quicker. 4) Block working hours for ground handlers or contract that part of the service out to a dedicated ground handler. As they would have already being handling oth... Quote 1   0

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