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CAL "Milking" Guyanese To Cover Tobago Losses

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CAL "Milking" Guyanese To Cover Tobago Losses

Postby bluefete » December 31st, 2019, 4:43 pm

Guyana getting bobolized all how - by ExxonMobil and by CAL and American Airlines.

Caribbean Airlines ‘milking’ Guyanese to cover Trinidadians’ air travel
By Tamica Garnett - December 31, 2019


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THE Competitions and Consumer Affairs Commission (CCAC), in a recent study, highlighted that Guyana continues to be exploited as “cash cow” for Trinidad state- owned Caribbean Airlines Limited (CAL) so that the struggling airline can offset huge losses being encountered at its internal air bridge route between Trinidad and Tobago.

The study released on Monday called, “Competition in International Airline Routes: A Study of the International Airline Sector in Guyana” contends that “revenues from Guyana are used, in essence, to subsidized Trinidadians’ travel between Trinidad and Tobago”.

“CAL kept prices in Guyana artificially high due to its monopoly to increase prices to offset the Port of Spain/Tobago air bridge that has financially hemorrhaged the airline,” the report asserts.

Operating more than 600 weekly flights to 19 destinations in the Caribbean, North and South America, and in Guyana, CAL operates seven weekly return flights to Miami, seven weekly return flights to Pearson International Airport in Canada and 10 weekly return flights to the John F. Kennedy Airport in New York.

Guyanese have continuously complained, over the years, of the exorbitant prices charged by the regional airline carrier, coupled, at times, with less than stellar service meted out to customers. The label “cash cow” was, according to news reports, used in 2017 by Trinidadian Member of Parliament, Fazal Karim, to describe the airlines operations in Guyana, at a time when it was now beginning to become profitable and ceasing to be a burden to the Trinidadian taxpayers.

Currently, the airline accounts for 59 percent market share of air traffic at the CJIA. The Guyana to John F. Kennedy Airport in New York route is the airline’s most lucrative route, with travel through this route accounting for 34 percent of the traffic passing through the Cheddi Jagan International Airport (CJIA). The next most popular route, Canada, accounts for only 15 percent of travel through the airport; Aruba accounts for 14 percent.

The study did not include data from the Eugene F. Correia International Airport and forms part of a larger document which seeks to examine Guyana’s airline industry in its entirety.

The study calls for the need of a Guyanese state-owned airline to “temper this monopoly” which CAL exploits. The airline experienced an average of the 78.35 percent seat capacity from 2008-2018. Notwithstanding, the prices remain high.

The study explains that the airline makes a loss of approximately US40 per passenger for its Trinidad to Tobago air bridge route, with the loss being significantly magnified given the fact that that route accounts for more than 50 percent of CAL’s air traffic.

“The route is responsible for an estimated US$40, 000,000 loss to the company annually. The price of a round trip on the Tobago air bridge route is US$60. The fare has been kept artificially down, the actual cost is… around $120, [and] the airline gets a subsidy of 20 dollars per passenger per trip, hence the loss on this route is $40 per passenger. This route accounts for more than one million passengers,” the study notes.

And Guyanese continue to pay for it. The study notes that, in terms of profit, CAL ‘milks’ as much as 100 percent on a return trip and 150 percent on a one-way trip for peak travelling from its Guyana to JFK route.
“At no time will CAL reap less than 97percent and 76 percent profit respectively. The returns are of course significantly higher, when tickets aren’t purchased early for the peak season. A typical basic non-flexible economy one-way flight, booked months in advance, for the peak season of July-August costs $553. 11 while a return costs $940. 65,” the report revealed.

The report provides calculations that places the airlines break-even cost per seat at US$297.64 one way and US$595.28 return, using maximum costing estimates.

“The minimum load capacity that CAL requires to break even on this flight on only their basic economy non flex price is 64 seats, a capacity of only 40 percent.”

The Commission noted being compelled to conduct the study due to the lack of reasonably-priced and reliable international air travel in a time of increased global competition has –
“[It] prompted us to examine the industry to ascertain how we can promote competition.
Given the international traffic to and from Guyana in relation to its population, it is imperative that for all parties involved that international travel to Guyana by air remains a competitive affair,” the study said.

Mistreatment of Guyanese by state-owned Trinidadian airlines dates all the way back to the 1980s when it was known as British West Indies Airlines. CAL was incorporated on September, 2006, and began flight operations in January, 2007.

The study underscores that the situation of Guyanese is compounded by Guyana’s lack of alternatives, which “completely eroded any consumer power”.

“In an ideal market, customers would also have other travel options to consider such as high-speed trains, cars, ships, and buses. This isn’t the case for Guyana and its GEO-JFK market. They are no substitutes for this market; we cannot get there by car, bus or boats,”

The study notes that the Guyana’s airline market is not susceptible to market factors that usually drive the cost down, particularly increase in competition. It notes the example of the lack of changes in price even after American Airlines entered the Guyana market in November, 2018, catering for flights between Guyana and the US.

“Guyana had hoped prices would be driven down. This hope never materialized,” the report noted.

The study goes on to reference American Airlines as being on its own exploitation mission, targeting mainly employees and others related to the oil exploration operations currently ongoing in Guyana, further burdening Guyana, given that the country is responsible for oil exploration expenses, including those for travel and accommodation.

https://guyanachronicle.com/2019/12/31/ ... 2EHkBjdpcE

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Re: CAL "Milking" Guyanese To Cover Tobago Losses

Postby Dizzy28 » December 31st, 2019, 5:05 pm

Sensationalism at best!!

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Re: CAL "Milking" Guyanese To Cover Tobago Losses

Postby zoom rader » December 31st, 2019, 5:17 pm

PNM airlines at its best.

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Re: CAL "Milking" Guyanese To Cover Tobago Losses

Postby ProtonPowder » December 31st, 2019, 5:19 pm

Trinidad does love its monopolies

Wonder if this also explains the absurd prices between Piarco and Kingston

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Re: CAL "Milking" Guyanese To Cover Tobago Losses

Postby zoom rader » December 31st, 2019, 5:23 pm

ProtonPowder wrote:Trinidad does love its monopolies

Wonder if this also explains the absurd prices between Piarco and Kingston
Well we need to keep Jamacians out.

Wish they bust some prices on the Grenada and St Vincent.

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Re: CAL "Milking" Guyanese To Cover Tobago Losses

Postby vaiostation » December 31st, 2019, 5:34 pm

How ya expect CAL to pay for imbutt son stipend.

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Re: CAL "Milking" Guyanese To Cover Tobago Losses

Postby antlind » December 31st, 2019, 5:42 pm

Pretty soon Guyana will have their own airline. If all that oil money isn’t squandered.

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Re: CAL "Milking" Guyanese To Cover Tobago Losses

Postby Dizzy28 » December 31st, 2019, 5:59 pm

Every thing Guyana want to do they need to look at us. Airlines are a low margin business with little scope for inefficiencies. CAL claim profitability this year but didnt tell anybody NP write down 300m for thier fuel bill.

Guyana would be foolish to start an airline unless they want to really throw money away.
antlind wrote:Pretty soon Guyana will have their own airline. If all that oil money isn’t squandered.

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Re: CAL "Milking" Guyanese To Cover Tobago Losses

Postby paid_influencer » December 31st, 2019, 6:22 pm

antlind wrote:Pretty soon Guyana will have their own airline. If all that oil money isn’t squandered.


starting their own airline is the definition of squandering money. :drinking:

as i get old, i learn not to trust the newspapers. the "guyana chronicle" article is garbage, like 90% of our caribbean news "products".

setting up divisions, Trinis vs Guyanese, is somebody is pushing propaganda.
Last edited by paid_influencer on December 31st, 2019, 6:27 pm, edited 2 times in total.

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Re: CAL "Milking" Guyanese To Cover Tobago Losses

Postby matr1x » December 31st, 2019, 6:25 pm

vaiostation wrote:How ya expect CAL to pay for imbutt son stipend.



Ask stewie girl spawn

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Re: CAL "Milking" Guyanese To Cover Tobago Losses

Postby hydroep » December 31st, 2019, 6:46 pm


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Re: CAL "Milking" Guyanese To Cover Tobago Losses

Postby zoom rader » December 31st, 2019, 8:00 pm

paid_influencer wrote:
antlind wrote:Pretty soon Guyana will have their own airline. If all that oil money isn’t squandered.


starting their own airline is the definition of squandering money. :drinking:

as i get old, i learn not to trust the newspapers. the "guyana chronicle" article is garbage, like 90% of our caribbean news "products".

setting up divisions, Trinis vs Guyanese, is somebody is pushing propaganda.
Nice bro you learning

It's the same with local media houses, anyone who believes they read from the PNM & 1% media houses are truly fools

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Re: CAL "Milking" Guyanese To Cover Tobago Losses

Postby rspann » December 31st, 2019, 8:05 pm

Good the skunt dem getting rob. Dem been all de time outsmarting everybody.

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Re: CAL "Milking" Guyanese To Cover Tobago Losses

Postby Dizzy28 » December 31st, 2019, 8:24 pm

Some ah them scam yuh rent ah wha??
rspann wrote:Good the skunt dem getting rob. Dem been all de time outsmarting everybody.

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Re: CAL "Milking" Guyanese To Cover Tobago Losses

Postby rspann » December 31st, 2019, 8:32 pm

One rent an apartment for $3000 and sublet to about ten of them' sleeping all in the living room on sponge 'charge them $1500 EACH and tell them rent expensive in trinidad. A tenant alerted me and I went there abòut six am. Bacchanal like that when i vrace them, then they find out how much she paying, is level guyanese cuss.

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Re: CAL "Milking" Guyanese To Cover Tobago Losses

Postby Dizzy28 » December 31st, 2019, 8:34 pm

Basically one set of skuntay then!!!!!
rspann wrote:One rent an apartment for $3000 and sublet to about ten of them' sleeping all in the living room on sponge 'charge them $1500 EACH and tell them rent expensive in trinidad. A tenant alerted me and I went there abòut six am. Bacchanal like that when i vrace them, then they find out how much she paying, is level guyanese cuss.

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Re: CAL "Milking" Guyanese To Cover Tobago Losses

Postby zoom rader » December 31st, 2019, 8:41 pm

rspann wrote:One rent an apartment for $3000 and sublet to about ten of them' sleeping all in the living room on sponge 'charge them $1500 EACH and tell them rent expensive in trinidad. A tenant alerted me and I went there abòut six am. Bacchanal like that when i vrace them, then they find out how much she paying, is level guyanese cuss.
Rookie mistake

Always state on the lease a number of people in your appartment.

If 3 ppl renting in my place then it's 3 people only, if visitors staying ie hoildays then they have to give me a letter in writing. Breach of lease and I kick them out.

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Re: CAL "Milking" Guyanese To Cover Tobago Losses

Postby rspann » December 31st, 2019, 8:56 pm

I don't make mistake dan. I have it down like a science. But when they hide out you wouldn't know unless they living in the same compound with you or somebody sell them out. I run they skunt one time. I just tell them I calling immigration. She run too.

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Re: CAL "Milking" Guyanese To Cover Tobago Losses

Postby pugboy » December 31st, 2019, 9:02 pm

yuh need to put some cameras

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Re: CAL "Milking" Guyanese To Cover Tobago Losses

Postby rspann » December 31st, 2019, 9:07 pm

Not me. I don't have time for that. There is always an informer. Just call me if you have a problem, and pay monthend.
Last edited by rspann on December 31st, 2019, 9:08 pm, edited 1 time in total.

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Re: CAL "Milking" Guyanese To Cover Tobago Losses

Postby matix » December 31st, 2019, 9:07 pm

Typical Guyanese

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Re: CAL "Milking" Guyanese To Cover Tobago Losses

Postby 16 cycles » January 1st, 2020, 9:00 am

Easiest way to burn through money is to open your own airline....ask Vijay Mallya...

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Re: CAL "Milking" Guyanese To Cover Tobago Losses

Postby Reamos EK9 » January 2nd, 2020, 3:46 pm

LETTER TO THE EDITOR

Caribbean Airlines Limited

Iere House

Piarco, Trinidad and Tobago, W.I.

January 02, 2020.


Dear Sir,

Re: Response to article published in the Guyana Chronicle on December 31, 2019

Caribbean Airlines has taken note of the article appearing in the Guyana Chronicle on December 31, 2019.

The airline considers it important to point out the following:

(i) Caribbean Airlines and its predecessor BWIA International Airways have faithfully served Guyana since 1947. While other providers have come and gone, Caribbean Airlines has maintained its commitment to Guyana regardless of whether times are good or bad.

(ii) Like all airlines in the current commercial climate, Caribbean Airlines faces intense competition and constant upward pressure on overall costs, while also trying to invest for the future.

(iii) Caribbean Airlines has and continues to carefully manage ticket prices for the Guyana market. The airline’s pricing policies are done in line with its operational costs and not with a view to exploit any given market, so the claim of artificially high prices, based on a monopoly as stated in the article is with respect, wrong.

(iv) Ticket prices of foreign carriers operating into and out of Guyana are in fact regularly higher than Caribbean Airlines, particularly with respect to fares that include a checked bag.

(v) Caribbean Airlines recently launched Caribbean branded fares which offer more choice and greater flexibility to all customers. The fare options on the airline are now LITE, CLASSIC, FLEX, BIZ and BIZ FLEX all with different features, to cater to the specific needs of travellers.

(vi) Guyana is the only market outside of Trinidad and Tobago which offers “Caribbean Layaway” which allows customers to use a payment plan to purchase tickets.

(vii) The assertion that Caribbean Airlines is “using the Guyana market as a "cash cow" using the revenues to subsidize Trinidadians travel between Trinidad and Tobago by offsetting (sic) losses being incurred by the company through the Port of Spain to Tobago air bridges (sic), which they say is haemorrhaging (sic) the airline” is wrong.

The accounts and financing of the domestic air bridge between Trinidad and Tobago is not co-mingled with the airline’s international operations. And the revenues from international routes including Guyana are not used to offset losses on the domestic air bridge.

Caribbean Airlines has a clear arrangement with the Government of Trinidad and Tobago (GORTT) as it relates to the financing and management of the domestic air bridge which has nothing to do with revenues from any international routes.

Caribbean Airlines as an organisation has achieved an operating profit for the first time in many years. The airline is excited to be reinvesting in a new fleet, new routes, and improved services. This includes Guyana, where we launched the new service to Havana, Cuba, added additional flights on existing routes including New York, and have further expansions planned over the next few months and years including the opening of additional ticket offices.

These are substantial investments in the Guyanese market, where Caribbean Airlines already has a number of competitors and where there is always the threat of new entrants.

On a final note, we are quite aware of and are very deeply concerned about the continued inconvenience associated with the need to transit through Trinidad and Tobago on the way to the United States of America.

Caribbean Airlines has met all of the requirements, to facilitate non-stop travel between Guyana and the United States of America. However, the final regulatory approval to permit such, lies within the joint jurisdiction of the Government of Guyana and the United States authorities to grant permission of same.

The airline is looking forward with much anticipation for this authorisation to be granted.

Caribbean Airlines continues to be committed to faithfully serving Guyana and the region as a whole and takes this opportunity to wish all of our loyal customers a happy and successful new year and we look forward to being your Caribbean airline of choice in 2020.



Sincerely,



The Caribbean Airlines Team

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Re: CAL "Milking" Guyanese To Cover Tobago Losses

Postby Country_Bookie » January 2nd, 2020, 6:46 pm

Good response from CAL but these paragraphs below are quite vague. I would really like to know whether the subsidy is just US $20 & if they making a loss of US$40 everytime someone uses the air bridge. The part about not comingling revenues from the air bridge is questionable, since they have to report consolidated financial statements.


The accounts and financing of the domestic air bridge between Trinidad and Tobago is not co-mingled with the airline’s international operations. And the revenues from international routes including Guyana are not used to offset losses on the domestic air bridge.

Caribbean Airlines has a clear arrangement with the Government of Trinidad and Tobago (GORTT) as it relates to the financing and management of the domestic air bridge which has nothing to do with revenues from any international routes.

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Re: CAL "Milking" Guyanese To Cover Tobago Losses

Postby zoom rader » January 2nd, 2020, 6:51 pm

^^^ what a load of bull5hit.

CAL should have never replied.

They more guilty as fvck now

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Re: CAL "Milking" Guyanese To Cover Tobago Losses

Postby AbstractPoetic » January 2nd, 2020, 8:34 pm

antlind wrote:Pretty soon Guyana will have their own airline. If all that oil money isn’t squandered.


This.

Also, I believe JetBlue and American Airlines will start to fly direct from JFK to GEO in March 2020. I am pretty certain CAL will have to lower their prices and improve their services to be able to compete.

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Re: CAL "Milking" Guyanese To Cover Tobago Losses

Postby Dizzy28 » January 3rd, 2020, 9:50 am

With the impending expansion of competition on CAL's bread and butter route they will have to optimise and become very efficient or else more of our tax payers money going to be pelting out to prop up fake profitability.

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Re: CAL "Milking" Guyanese To Cover Tobago Losses

Postby hydroep » January 3rd, 2020, 10:27 am

Seeing that the PNM on a move to wean people off their dependency on the State they should remove the fuel subsidy on the airbridge. If they subsidize fuel on the seabridge remove that too.

Sure that will make things in Tobago more expensive and perhaps make it a less attractive vacation spot but...as they said with the removal of the motor vehicle fuel subsidy it will reflect the true cost of doing business and force the Tourism Market to become more efficient to remain competitive.

And for the regular Tobagonian and inter-island vacationer who starts to complain just hush allyuh skunt. Who want to travel pay full price — otherwise stay home or swim...:|

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Re: CAL "Milking" Guyanese To Cover Tobago Losses

Postby bluefete » January 3rd, 2020, 10:31 am

Dizzy28 wrote:With the impending expansion of competition on CAL's bread and butter route they will have to optimise and become very efficient or else more of our tax payers money going to be pelting out to prop up fake profitability.


Nail on head there Dizzy28.

That Operating Profit BS CAL and TSTT are pushing is fooling a lot of people.

It is profit BEFORE Interest and Taxes are deducted, Once the interest and taxes are added/taken out, you then have a true figure as to whether the compnay really made a profit or loss.

Operating profit tells you how the core operations of the company performed. This is used by management to deternine how efficient they were at controlling costs.

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Re: CAL "Milking" Guyanese To Cover Tobago Losses

Postby bluefete » January 3rd, 2020, 10:32 am

AbstractPoetic wrote:
antlind wrote:Pretty soon Guyana will have their own airline. If all that oil money isn’t squandered.


This.

Also, I believe JetBlue and American Airlines will start to fly direct from JFK to GEO in March 2020. I am pretty certain CAL will have to lower their prices and improve their services to be able to compete.


It happens all the time. Once there is competition some costs are lowered.

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