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Wednesday, September 11, 2013
Authorities in Trinidad and Tobago say they have been assured by Caribbean Airlines Ltd (CAL) that ticket prices will not be affected by the government's decision to remove its multi-million dollar fuel subsidy to the Airline. Finance Minister Larry Howai told the Parliament on Tuesday that the decision will be effective as of October 1. However, the subvention for the Tobago air bridge remains enforced.
According to Howai, it is imperative for the debt-ridden State airline to adopt a financially-sound business model in targeting segments of the global tourism market. The new CAL board has completed the first phase of a revised business plan for the airline to achieve financial viability. The subsidy for the Tobago airlift will remain. "These factors have been incorporated into the business plan which I expect to receive on September 17, 2013", Howai said.
The fuel subsidy for CAL is estimated to be TT$300 million.
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