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Thread: AIRLINE WAR: LIAT vs Caribbean Star

  1. #1
    Registered Member VINCYPOWA's Avatar VINCYPOWA is offline
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    AIRLINE WAR: LIAT vs Caribbean Star

    Predatory pricing unmasked

    Monday November 07 2005



    There is a deafening silence in Kingstown St. Vincent these days regarding the recent implementation of LIAT’s new fares policy.

    Prime Minister Ralph Gonsalves has not uttered a single word since LIAT introduced its predatory fares a month ago.

    We remember well some years back when this same Prime Minister unleashed a venomous attack on Caribbean Star Airlines, accusing the new airline of “predatory pricing” with its introductory fares.

    We remember too, his excursions up and down the Caribbean, as Caricom’s mouthpiece for air transportation, breathing fire and brimstone about this foreign-owned airline coming into the region and engaging in such a practice with the sole purpose of putting LIAT out of business, nary a word about good, stiff competition.

    Today PM Gonsalves’ lips seemed zipped when LIAT arrogantly chooses to call its predatory pricing initiative “A Quiet Revolution”. Suddenly he does not speak for the region anymore on matters dealing with air transportation, or so it seems.

    Now that his airline mask has been removed, we realise that PM Gonsalves, one of the newer PMs in Caricom, was really only about improving his image among his peers and not truly concerned about the future of air transportation in the Caribbean.

    But call it what you want, “A Quiet Revolution”, or “LIAT’s New Business Model,” it all comes down to LIAT’s burning desire to try and wrest from Caribbean Star, that large chunk of market share the new airline has chiseled away from it over the last five years.

    It is just plain, unadulterated brass that LIAT could advertise up and down the Caribbean it was introducing a “whole new way to fly” (for now we won’t even consider whether it was patterned after Caribbean Star’s “a whole new altitude”) because Caribbean Star never offered a fare as low as US$22, yet PM Gonsalves chooses to remain silent on the issue.

    But there’s an old Caribbean saying –“What’s good for the goose is good for the gander” and PM Gonsalves has to remember that.

    CEO Cullen is not without blame in this whole sordid, hypocritical scenario. We remember him crying crocodile tears about unfair competition and predatory fares being implemented by Caribbean Star. But, that was when LIAT was hurting badly for money. Today the story is somewhat different. Cullen got hold of US$25million from Caribbean taxpayers late last year affording the beleaguered airline some breathing space, so LIAT can now afford to implement predatory pricing and seemingly, is able to get away with it.

    We remember when Cullen, on so many occasions, going cap in hand to the various governments begging for much-needed funds and always promising that if LIAT got the money he would correct all the ills and lead the airline into profitability.

    Today after the capital injection, he is still saying he needs two years for the turnaround, even though the airline is still indebted to the tune of some $200 million.

    To justify its introduction of predatory fares, LIAT has labelled the new move as “customer empowerment”. Cullen said in his advertisement, “Customers can now plan travel itineraries spontaneously, or on their own time.” But weren’t customers doing this for years? The major problem was that when LIAT was a monopoly, planning itineraries was a useless exercise.

    Simply put, the thorny issue of predatory pricing is that when the accusations are levelled against Caribbean Star, it is labelled “predatory pricing”.

    When LIAT drops its fares to unrealistically low numbers that is called, “A Quiet Revolution.”

    We hope that Caribbean Star will grab hold of this opportunity and set up similar fares, knowing full well they cannot be accused of predatory pricing anymore.

  2. #2
    FRAUD baxters's Avatar baxters is offline
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    Quote Originally Posted by VINCYPOWA
    Predatory pricing unmasked

    Monday November 07 2005



    There is a deafening silence in Kingstown St. Vincent these days regarding the recent implementation of LIAT’s new fares policy.

    Prime Minister Ralph Gonsalves has not uttered a single word since LIAT introduced its predatory fares a month ago.

    We remember well some years back when this same Prime Minister unleashed a venomous attack on Caribbean Star Airlines, accusing the new airline of “predatory pricing” with its introductory fares.

    We remember too, his excursions up and down the Caribbean, as Caricom’s mouthpiece for air transportation, breathing fire and brimstone about this foreign-owned airline coming into the region and engaging in such a practice with the sole purpose of putting LIAT out of business, nary a word about good, stiff competition.

    Today PM Gonsalves’ lips seemed zipped when LIAT arrogantly chooses to call its predatory pricing initiative “A Quiet Revolution”. Suddenly he does not speak for the region anymore on matters dealing with air transportation, or so it seems.

    Now that his airline mask has been removed, we realise that PM Gonsalves, one of the newer PMs in Caricom, was really only about improving his image among his peers and not truly concerned about the future of air transportation in the Caribbean.

    But call it what you want, “A Quiet Revolution”, or “LIAT’s New Business Model,” it all comes down to LIAT’s burning desire to try and wrest from Caribbean Star, that large chunk of market share the new airline has chiseled away from it over the last five years.

    It is just plain, unadulterated brass that LIAT could advertise up and down the Caribbean it was introducing a “whole new way to fly” (for now we won’t even consider whether it was patterned after Caribbean Star’s “a whole new altitude”) because Caribbean Star never offered a fare as low as US$22, yet PM Gonsalves chooses to remain silent on the issue.

    But there’s an old Caribbean saying –“What’s good for the goose is good for the gander” and PM Gonsalves has to remember that.

    CEO Cullen is not without blame in this whole sordid, hypocritical scenario. We remember him crying crocodile tears about unfair competition and predatory fares being implemented by Caribbean Star. But, that was when LIAT was hurting badly for money. Today the story is somewhat different. Cullen got hold of US$25million from Caribbean taxpayers late last year affording the beleaguered airline some breathing space, so LIAT can now afford to implement predatory pricing and seemingly, is able to get away with it.

    We remember when Cullen, on so many occasions, going cap in hand to the various governments begging for much-needed funds and always promising that if LIAT got the money he would correct all the ills and lead the airline into profitability.

    Today after the capital injection, he is still saying he needs two years for the turnaround, even though the airline is still indebted to the tune of some $200 million.

    To justify its introduction of predatory fares, LIAT has labelled the new move as “customer empowerment”. Cullen said in his advertisement, “Customers can now plan travel itineraries spontaneously, or on their own time.” But weren’t customers doing this for years? The major problem was that when LIAT was a monopoly, planning itineraries was a useless exercise.

    Simply put, the thorny issue of predatory pricing is that when the accusations are levelled against Caribbean Star, it is labelled “predatory pricing”.

    When LIAT drops its fares to unrealistically low numbers that is called, “A Quiet Revolution.”

    We hope that Caribbean Star will grab hold of this opportunity and set up similar fares, knowing full well they cannot be accused of predatory pricing anymore.












    Cullen got hold of US$25million from Caribbean taxpayers late last year affording the beleaguered airline some breathing space, so LIAT can now afford to implement predatory pricing and seemingly, is able to get away with it.

  3. #3
    IMIX ATTORNEY GENERAL Trinibaje's Avatar Trinibaje is offline
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    Quote Originally Posted by baxters
    Cullen got hold of US$25million from Caribbean taxpayers late last year affording the beleaguered airline some breathing space, so LIAT can now afford to implement predatory pricing and seemingly, is able to get away with it.



    this whole issue is hysterical.... good luck to Liat with their Quiet Revolution.... i hope Carib-Star stays put and continue pressing Liat's buttons because on thing people in the caribbean seem to forget.. is that compeitition is good...

    Hey once pilots are employed i have no quarrel... now i wish some one will give me a billion dollars so i can start an airline to put BWEE out of its misery...

  4. #4
    Freedom Soca Taliban's Avatar Soca Taliban is offline
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    Cool

    Quote Originally Posted by Trinibaje


    this whole issue is hysterical.... good luck to Liat with their Quiet Revolution.... i hope Carib-Star stays put and continue pressing Liat's buttons because on thing people in the caribbean seem to forget.. is that compeitition is good...

    Hey once pilots are employed i have no quarrel... now i wish some one will give me a billion dollars so i can start an airline to put BWEE out of its misery...

  5. #5
    FRAUD baxters's Avatar baxters is offline
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    Quote Originally Posted by Trinibaje


    this whole issue is hysterical.... good luck to Liat with their Quiet Revolution.... i hope Carib-Star stays put and continue pressing Liat's buttons because on thing people in the caribbean seem to forget.. is that compeitition is good...

    Hey once pilots are employed i have no quarrel... now i wish some one will give me a billion dollars so i can start an airline to put BWEE out of its misery...



    a billion dollars so i can start an airline to put BWEE out of its misery... ...

    u might only need bout 2 million tuh do this

  6. #6
    Registered User trinidarkie is offline
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    Quote Originally Posted by Trinibaje


    this whole issue is hysterical.... good luck to Liat with their Quiet Revolution.... i hope Carib-Star stays put and continue pressing Liat's buttons because on thing people in the caribbean seem to forget.. is that compeitition is good...

    Hey once pilots are employed i have no quarrel... now i wish some one will give me a billion dollars so i can start an airline to put BWEE out of its misery...
    I could get a job?????

  7. #7
    Registered Member VINCYPOWA's Avatar VINCYPOWA is offline
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    I SUPPORTING LIAT because it has been the AIRLINE of the EASTERN CARIBBEAN since the DAYS of the DINOSAURS.

    Nevertheless, COMPETITION is good....the CONSUMER will be the WINNER in all this.

  8. #8
    Pebbles362436
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    "PM Gonsalves’ lips seemed zipped when LIAT arrogantly chooses to call its predatory pricing initiative “A Quiet Revolution”. LOL I know the feeling what they don't know won't hurt them.

    The airline biz/industry is no joke. However, I will also continue to support and promote some of them in my very own creative and innovative ways. Who vex lost.

  9. #9
    Anbu Black Ops passy's Avatar passy is offline
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    we flyin liat
    and if they had introduce this earlier i would be flying them to go home

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