After losing millions in what was considered “a competitive environment”, LIAT was forced to increase air fares, says chief executive officer Mark Darby.
In a Press release issued yesterday, he said LIAT had increased its fares by $20 since October last year before merging with Caribbean Star, mainly because the company was losing millions because of the region’s extremely high maintenance costs.
“The fares in the market today are appropriate and realistic as far as our costs are concerned,” Darby stated in the press release. “Overall, our fares are realistic, given where our costs are today.”
The CEO stressed LIAT was forced to battle with exorbitant maintenance costs for its 12 aircraft, with a quarter of its budget going to fuel consumption alone.
He added that LIAT was forced to deal with special circumstances which affected its fleet, like Sahara dust, and volcanic ash from Monsterrat, which allowed an engine life of only 3,000 to 4,000 hours of flight time, compared to 8,000 hours for similar planes used elsewhere in the world.
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