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KLM11
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Joined: Tue Dec 30, 2003 2:32 pm

How Profitable Are Carribean Airlines/Routes

Sun Feb 01, 2004 4:12 pm

I am just curious...is the Carribean Profitable. I was on a flight (AA -- 738) from MIA to Dominican Republic (Puerta Plata), and it was PACKED!!

--KLM11
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dstc47
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RE: How Profitable Are Carribean Airlines/Routes

Sun Feb 01, 2004 5:17 pm

Most past and present Carribean local carriers seem to be either always unprofitable, or unprofitable in any traffic downturn situation. Some of these are self inflicted wounds.

AA - who are only a relatively recent strong force in this region, are killing them with better frequency, service standards (not too hard given the woeful reputation of many carriers there past and present), economic and political clout with small islands and their network advantages.
 
N276AASTT
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RE: How Profitable Are Carribean Airlines/Routes

Sun Feb 01, 2004 5:37 pm

Being from the islands, I wish there were more options for us "islanders." Granted AA has the frequency and the network to get us where we're going, but they've pretty much got us locked down. The majors charge astronomical fares. Ex: SJU-STT can be as high as $200 rt!. That is a 30 min flight on an AE ATR-42(72) or AA 15 min mainline. Cabin service........uh, there is none. No drinks, peanuts or pretzels, nada. AE's F/A's could do the cabin service within that amount of time. If not, hire better F/As. DL, CO, and US all service (limited) here as well, each the same thing to their respective hubs. I call for a local airline that caters to us, the caribbean people. One that doesn't charge us an arm and a leg. One that will give the majors a run for their money and force them to lower fares and offer a better product. We can have that with Liat, Caribbean Star, and BWIA. But that remains to be seen. Take care.
Dejale Caer tu el Peso! YOMO
 
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chepos
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RE: How Profitable Are Carribean Airlines/Routes

Sun Feb 01, 2004 11:18 pm

Both BWIA and LIAT are huge money losers, the government of Trinidad and Tobago has had to inject money into the carrier to save ailing BWIA. that Air Jamaica whiCh is better off than BWIA is not a big money maker either, yes they add new routes here and there and get new planes but apparently the airline is loosing money. AA is extremely strong in the region and alot of the airlines locally based dont have the resources to compete effectively with AA. N276 you mentioned high fares on intracaribbean flights listen to this- AA charges $324.00 during high season for a 35 min flight to SDQ from SJU, around $274 during low season. Most probably thats whay Air Santo Domingo is making a killing on the route with its $150 fares .
Chepso
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behramjee
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RE: How Profitable Are Carribean Airlines/Routes

Mon Feb 02, 2004 7:01 am

Considering that majority of European pax to the Carribbean are leisure low yield pax...do BA-VS-AF and KLM make a good amount of profit flying to this region with B 747s-A 340s and B 777s??? Are their many F&J class pax as well as premium eco / world trav plus pax flying this route on a consistent basis?
 
Islandboy
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RE: How Profitable Are Carribean Airlines/Routes

Mon Feb 02, 2004 11:37 am

I agree with N276. More options and more frequencies. Nassau to MIA/FLL is a very profitable route but AA dominates it and pretty much control the prices. Bahamasair & Continental Connection do serve these routes too but most people dont like to fly on small planes (Co B1900) and Bahamasair doesn't have enough aircraft to utilize more frequencies; having to fly to the major Family Islands and an almost sub-shuttle service to Freeport daily.

Thats why tickets can go up to $325 depending how long you wait in high season.
Looks like the fresh wind has gone stale
 
BWIA 772
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RE: How Profitable Are Carribean Airlines/Routes

Mon Feb 02, 2004 1:04 pm



I dont want to sound bad or being anti AJ but no sandals no AJ.

Behramjee

BA makes money on the caribbean or they would have pulled out a long time ago. I know that Tobago and Grenada receive at least a weekly service from BA and VS but BA may be more.

BA and VS make a killing on the BGI route. BA has a daily 777 service and VS a daily 747. BA for the winter also added an extra 777 service along with a 747 service.


For caribbean airlines:
BWIA seems to be coming out of its depression but I think the people their lack vision especially marketing. DO THEY DO RESEARCH!!!

LIAT under capitalized from start move to Antigua was not good and they are over staffef. For all the talk LIAT still has 70% of the market and that market is not one that money cant be made off of. (info for LIAT was obtained on by a person on the inter island committee looking at LIAT)

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