(Jamaica Gleaner) The regional carrier, LIAT, has charged that the subsidy given to Caribbean Airlines (CAL) by the Government of Trinidad and Tobago is a violation of the Revised Treaty of Chaguaramas.
However, St Vincent and the Grenadines Prime Minister Dr Ralph Gonsalves, who made the assertion, says he does not want to pick a fight with the Kamla Persad Bissessar administration and instead will pursue dialogue in Port of Spain later this month.
Speaking at the end of a shareholders meeting of the Antigua-based LIAT Airlines, Dr Gonsalves, said that the subsidy to CAL is also a violation of the Common Air Services Agreement among CARICOM member countries.
He says this has resulted in substantial losses to LIAT.
Citing one example, Dr Gonsalves says between 2008 and 2012 LIAT spent more than US$106 million on fuel.
He says if LIAT was able to purchase fuel at the same price as CAL over the same five year period, it would cost US$43 million.
