Now Playing

Lower taxes could make island‑hopping affordable again – experts

If Barbados and its Caribbean neighbours follow the advice of two aviation experts on improving regional air connectivity, the cost of intra-regional travel could nose-dive and encourage more people to fly. 

The experts’ plan, which will be sent to regional governments to support economic growth and better air connections, includes lowering airport fees and passenger taxes as key recommendations.

Aviation consultant and France’s Honorary Consul to Barbados Captain Don Chee-A-Tow, along with Paul Gravel, managing director of SVG Air, Grenadine Airways, and OECS Aircraft Maintenance, said in their joint report that lowering taxes, security fees and airport charges on genuine intra-regional flights would stimulate passenger demand and improve airline competitiveness.

They are also recommending that Barbados and other Caribbean Community (CARICOM) governments treat regional aviation as essential infrastructure.                            

“Governments should formally recognise regional aviation as critical economic infrastructure, comparable to ports, highways and telecommunications. Efficient air connectivity underpins tourism, commerce, healthcare, education, investment and disaster resilience throughout the Caribbean,” the experts contend in their document dated August 10 and seen by Barbados TODAY.

They urge policymakers to provide more resources to regional civil aviation authorities to speed up aircraft registrations, licence validations and certification processes while reducing unnecessary delays.

They also suggest rebuilding regional aviation training and improving access to aviation financing.

For training, the two experts recommend setting up a well-funded regional aviation academy for pilots, aircraft maintenance engineers and other aviation professionals.

They believe this would help build a steady regional workforce and reduce dependence on overseas training.

Turning to accessible aviation finance, Chee-A-Tow, a former LIAT pilot, and Gravel suggest that the Eastern Caribbean Central Bank (ECCB), the Caribbean Development Bank (CDB), regional governments, commercial banks and international partners should collaborate to develop new aviation financing mechanisms.

The report states: “These may include partial credit guarantee schemes, aircraft financing facilities, development finance programmes, regional leasing initiatives and risk-sharing arrangements with commercial banks.” 

“Such measures would reduce lender risk while enabling operators to invest in safer, more fuel-efficient and economically sustainable aircraft.”  

They also recommend encouraging airlines to merge strategically.

“Support the development of fewer, stronger and better-capitalised regional airline groups capable of achieving economies of scale, improved fleet utilisation and stronger financial resilience,” Gravel and Chee-A-Tow stated.

They back promoting fleet modernisation, developing regional centres of excellence, introducing targeted public service obligations, strengthening commercial cooperation and reducing political interference.

“Encourage investment in modern aircraft appropriately sized for Caribbean markets, offering lower operating costs, greater fuel efficiency, reduced environmental impact and improved reliability,” they said. 

“Fleet standardisation should also be encouraged wherever practical to reduce maintenance, training and inventory costs.”  

The authors ask governments to set up shared regional facilities for aircraft maintenance, pilot training, engineering education and technical support to maximise scarce resources and improve efficiency.

On targeted public service obligations (PSO), they want the authorities to support important but less profitable routes through “transparent” PSO programmes, rather than expecting airlines to keep losing money on them.

To strengthen commercial integration, they suggest expanding interline agreements, coordinating schedules, offering through-ticketing, and partnering with tourism groups, hotels and cruise operators to boost demand and improve the passenger experience.

The authors believe that reducing political interference is possible by encouraging professional corporate governance and business-focused decisions, while still keeping important regional connections.

“Sustainable airlines require long-term business strategies supported by sound financial management rather than short-term political objectives,” they said.

In conclusion, Gravel and Chee-A-Tow said the Caribbean’s geography makes efficient regional air travel indispensable.

“The region’s continuing cycle of airline start-ups, financial distress and eventual collapse is not primarily the result of insufficient demand. Rather, it reflects structural challenges that have remained largely unaddressed for decades,” they said.

“By recognising aviation as essential economic infrastructure, strengthening regulatory capacity, rebuilding aviation training, improving access to finance, encouraging strategic consolidation, modernising fleets with appropriately sized aircraft and reducing political interference, Caribbean governments and regional institutions can establish a more resilient and commercially sustainable air transport system. 

“A stronger regional aviation network will not simply benefit airlines. It will enhance trade, tourism, healthcare, education, disaster response, investment and regional integration, delivering lasting economic and social benefits to all Caribbean citizens.”  (EJ)

The post Lower taxes could make island‑hopping affordable again – experts appeared first on Barbados Today.

Share the Post:
📲 Download the LOUD App
Faster access. Better experience. Tap once and you’re locked in.
🎧 Live Radio 24/7
🔥 Top DJs + Trending Shows
⚡ Instant tap & play
Available on Google Play
You can always listen on web too. iOS App Coming Soon!

#LOUD

Music Submission

Fill out the form below, and we will be in touch shortly.
Contact Information
Upload & Submit