Notes From The Margin

January 30, 2008

Why did we get upset about Caribbean Star again?

Does anyone remember the arguments that were given around the time when Caribbean Star started up? This crossed my mind today, when I think back the main objection to Caribbean Star went something like this….
“We don’t want to have Caribbean Star run LIAT out of business and then have regional air travel at the mercy of an American who could then charge whatever he wanted”

That’s not a quote, that’s my summary of it.  So where are we now? Allan Stanford and the Caribbean governments have both spent huge amounts of money propping up unprofitable airlines. The standard of service was not raised by the competition, in fact Caribbean Star seemed to gravitate towards LIAT’s service levels.   However, fares were low and people traveled.

Realising that he was in a competition that couldn’t be won, Allan Standford blinked. “selling out” Caribbean Star in a merger with LIAT, and what has happened.

We now have an airline in the Caribbean that can offer terrible service, charges astronomical prices way above what the marketplace considers acceptable. Further it has a level of staffing (particularly in Antigua) that defies any rational economic explaination, and continues to be subsidised by the taxpayers of the shareholder governments.

Exactly HOW are we better off?

Marginal

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1 Comment »

  1. […] post by notesfromthemargin and software by Elliott […]

    Pingback by singlepilot.net » Why did we get upset about Caribbean Star again? — January 30, 2008 @ 10:05 pm | Reply


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