Caribbean Airlines told to cut non-profitable routes

Caribbean Airlines told to cut non-profitable routes

PORT OF SPAIN, Trinidad — The Trinidad and Tobago Parliament’s Joint Select Committee (JSC) has recommended that Caribbean Airlines Ltd (CAL) immediately review the viability of some of its North American routes, as these have been unprofitable and resulted in an “unabated trend of declining passenger numbers and massive financial losses.”

At a press conference at Parliament on Monday, JSC chairman, independent Senator David Small, said the problem demanded urgent attention, adding that CAL needed to employ strategies to save such routes to prevent future financial leakages, the Trinidad Guardian reported.   

He also called on CAL to immediately cease all international recruitment of foreign pilots so as to ensure local pilots were instead hired.

He also urged CAL to recover the “huge sum” of money being owned by Venezuela, but when asked what was the figure Small said he preferred not to make this public as it may have negative repercussions.

But he described the Caracas route as one of the more profitable ones.

Small said during three meetings the committee “struggled” to obtain pertinent information from CAL, as partial submission of information was given, adding there seemed to be a challenge with CAL regarding the way it managed its operations. The JSC recommended that CAL immediately put a freeze on any salary increases until such time as its operation was sustainably profitable.

“CAL should immediately cease the practice of annual incentive or merit payments given the current unprofitable status of the company,” the JSC said.

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