Willemstad---14 Sept. 2006---“Loosing one airline company is unfortunate.  Loosing two is sloppy!  In the past ten years, Curacao and the Neth.Antilles had lost three airline companies, namely ALM, Air ALM and DCA".

It often happens that politicians and the private sector meddle in aviation matters, while most of the time they do not even have the knowledge.  Furthermore, when it comes to financial support, the private (hotel) sector fails badly.  With a literally fire-and-brimstone sermon, Clifton Wallé, CTB-director welcomed the audience at the airport conference in the Marriott early this week. 

Most of the politicians don’t have a clue about aviation.  That’s the reason why politics have undermined the commercial operation of many regional companies.  “One part doesn’t understand anything about route-development.   Destinations are launched and then cancelled again as a result of political decisions.  Agreements are entered on political level without deliberating first with airline companies and other interested parties.”

The private sector in the region described Wallé as a “strange being; as e chameleon; very visible when not needed and invisible when needed”. Everywhere you see the private sector meddle in discussions about aviation developments, while often they do not know much about aviation.  “Discussing markets with them is the same as having a plumber do an open heart surgery.  And when it comes to marketing support, the sector is no available.” 

Wallé empathetically appealed to the airport, airline companies, and the tourist sector to follow the continued changing market.  There’s not much in it for the aviation industry.  The entire sector makes about 6 million dollars profit worldwide, not even 2 percent yield on investments; “way under the expectations of investors that demand 7 to 8 percent in sectors with a comparable risk.”

The Caribbean is just a small part of the total aviation market, and that part continues to get smaller, because other markets will grow faster in the coming 10 years.  Caribbean airline companies belong to the ones that perform worst in the world.  “We almost tower above them.”  He cited the national airline companies of Trinidad & Tobago and Jamaica as an example.  BWIA had a loss of 26 million dollars last year and one million dollars every month of this year.  The company that will cease to exist at the end of this year needs 250 million dollars to proceed. 

Air Jamaica had a loss of 136 million dollars last year and received an 85 million dollars injection this year.  “The barometer in the region drops fast; enough to become depressed, just as happened to many of my colleagues in the past years.”

Curacao can tell you all about it.  “Loosing one airline company is unfortunately.  Loosing two is sloppy!  In the past ten years, Curacao and the Neth.Antilles had lost three airline companies, namely ALM, Air ALM and DCA.” 

Wallé explained very clear the problems the regional aviation is coping with, like small islands that are in the making and the critical survival-mass that is often lacking.  All the Caribbean airline companies have a vulnerable basis.  Strategically considered, the Caribbean airline companies are not attractive for the big aviation alliances, and they get isolated and cannot optimize their distribution.   The regional airline companies do not have enough buffers and can therefore not compete. 

The CTB-director was also self-critical.  “We pretend to be dynamic and professional, but we are not resistant to the Caribbean depression and political influences.  Short-term planning often wins from long-term policy.  Political influence forms the biggest threat for successful and sustained marketing of the destination.  One of the main duties of the CTB is and remains the attraction of airline companies that fit in the market strategy.” 

Most of the Caribbean countries have an open sky-treaty with the United States.  “I am sorry to say this, but these treaties have not done the regional companies any good.  The Caribbean market is open for the US companies, but not the other way around.   Again, unless the Caribbean companies form alliances with other companies and with this create a win-win situation by connecting networks, they won’t have a chance in a big combat with the big American airports and airline companies.” 

He named the demands in order to come to a good development of aviation.  The markets have to be clearly portrayed and the product has to be positioned on top of that.  The quality product has to be marketed in the right markets as ‘value for money’.   This will build up the volume and the airline companies can be approached in an attempt to convince them that a flying route to Curacao has potential.   “Airline companies are continuously looking for more marketing- and commercial support.  However, pressure of competitors and bad structured support elsewhere in the region screw up the expectations of airline companies.  This tendency can damage the entire market on the long term.  We must therefore come to a reform that suites all parties.” 

“We must not only create the volume, but also communicate the possibilities to reach the destination.  You can not just leave the marketing to the companies.  Take Continental for example, they have hundreds of destinations.  Besides, the people that decide on the routes of an airline company often have nothing to say on marketing and promotion.  We are better off not losing our time on new airlift if we are not going to do anything on marketing our destination, marketing the flight or put money into a so-called route development fund.  To my opinion, the private- and public sector should create this fund together.  The hotel sector will immediately take advantage of it anyway.”

The CTB has a clear vision.  “We will continue supporting local airline initiatives, if their networks are consistent with our strategies.  We will continue building on new links from the markets that we want to develop.”

Source: amigoe.com