LIAT Blames Taxes For High Airfares

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Business News

Monday, 17 December 2012 02:30

By caribarena news

Antigua St. John's - Caribbean nationals looking to travel for the holidays have quite an interesting task ahead of them, as regional ticket prices continue to skyrocket despite the economic challenges.

But regional airline LIAT says its not their fault the fares are so high, with Chief Executive Officer Captain Ian Brunton explaining that airport charges are what really pose the challenge for regional travelers.

Captain Brunton says airports in the Caribbean charge, in some cases, as much as 61 percent more than anywhere else in the world, and this is compounded by an additional 74 percent more in government taxes.

A 2008 IATA study on the cost of air travel, cited by LIAT in its recently released revised business plan, notes that while the airline might charge US$136 for an average ticket on Caribbean routes, government and airport taxes would make up for an additional US$56, compared to an average of US$33 charged against an average ticket price of US$246 from “benchmark” routes.

“This clearly indicates that LIAT fares are highly competitive and provide unparalleled value-for-money when compared with benchmarked routes in North-America and Europe,” LIAT said.

One adult ticket from Antigua to Dominica for the holidays, as of Sunday, averaged US$206.20 or EC$556.70, with taxes accounting for US$64.20 of that amount. This leaves the actual ticket cost at exactly US$142.

Former minister of tourism under the ALP Administration Molwyn Joseph said he was unaware at the present date of the dynamics of airport taxes and how they relate to LIAT airfares.

But he did posit that if the government intended to maintain any semblance of what currently exists with regards to visitor arrivals to Antigua from neighboring islands, it must keep in mind the cost of travel.

With that, Joseph cited the recent implementation of the airport administration tax, which not only combines all previous taxes, but adds an additional percentage that takes it to just around US$100 or EC$270, which is then added to the expenses of any passenger using the VC Bird International Airport.

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