CAL fuel subsidy continues to court controversy

Victoria
By Victoria February 21, 2013 10:43

CAL fuel subsidy continues to court controversy

St Vincent’s Prime Minister Dr Ralph Gonsalves, who is also chairman of airline Liat, has called on the government of Trinidad and Tobago to meet to discuss the continued fuel subsidy grants to national carrier Caribbean Airlines Limited (CAL).
Gonsalves recently listed the fuel subsidy as one of the “central challenges” the Liat airline faced. He claims that the subsidy is in contravention of the revised Treaty of Chaguaramas which governs the Caribbean Community (Caricom).

Meanwhile, Liat’s ATR order in December for three ATR-42-600s, with options for two ATR-72-600 as well acquiring two leased ATR-72-600s from Air Lease Corporation (ALC) is being questioned by some in the country. Liat intends topartially finance the order with a long term commercial loan of (US)$74.1 million and raise the remaining funding (US)$23.1 million, from current shareholders Barbados, Antigua and Barbuda and St Vincent and the Grenadines and the Commonwealth of Dominica, as well as some un-named potential new shareholders. The source of funding for the larger aircraft has not been disclosed however.

Victoria
By Victoria February 21, 2013 10:43
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