Is CARICOM ‘flying a kite’ on single Caribbean airline?
Analysis by Rickey Singh
Guyana Chronicle
November 11, 2002

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IF SOME governments of the Caribbean Community (CARICOM) are not having a joke at the expense of the region and its peoples, then there better be some urgent, specific action to the latest reports of plans being pursued for the creation of a single regional airline.

This “ole' talk” has come upon us again, now by a mixture of old and new political leaders in power. Unless they are properly and quickly advised, and are prepared to listen and act, they may spend valuable time and scarce resources trying to recreate the proverbial wheel as they confront difficult choices in the post-September 11, 200 terrorist attacks phase.

Indeed, even as the CARICOM Bureau was preparing for its meeting today in Barbados, the question was being asked whether the Community's governments are really ‘flying a kite' on the question of a single Caribbean airline.

Prime Ministers Patrick Manning and Ralph Gonsalves of St. Vincent and the Grenadines in particular, who have separately and enthusiastically been talking about the necessity for a single Caribbean airline, should make known, with clarity, how such a laudable objective is to be pursued now following the recent mini CARICOM Summit in Kingstown where regional air transport and more specifically LIAT's financial woes, were discussed.

Even before any working party could be assembled to consider how best to proceed on the issue, the bossman of 'Air Jamaica' and distinguished regional entrepreneur Gordon 'Butch' Stewart, has knocked down the idea of a single regional airline.

He said it wouldn't work and argues instead for "code-sharing" other forms of cooperation with BWIA and other airlines of the Caribbean.

Then followed objection also to any kind of merger or airlines by the Texan billionaire, Alan Stanford, who owns and bankrolls 'Caribbean Star' to the economic disadvantage of LIAT.

FROM DEMAS TO WI COMMISSION
The late William Demas, that elder statesman among leading regional technocrats who have steadfastly laboured in the cause of Caribbean economic integration and functional cooperation, would have been amused about the revival of this "talk" about a single airline to serve the region

After all, it is an issue he had articulated with much foresight over three decades ago when he produced the valuable publication "From CARIFTA to Caribbean Community" in his capacity as Secretary General of CARICOM.

He and other respected regional colleagues were to return, with even more clarity, to the issue in their "group of experts" report nine years later, on "The Caribbean Community in the 1980s".

Well meaning as they undoubtedly are, Manning and Gonsalves, as well as Guyana's President Bharrat Jagdeo, current Chairman of CARICOM, and Barbados' Prime Minister Owen Arthur, would also be aware of the attention devoted to very pressing regional issues like regional air transport by "The West Indian Commission" in its far-reaching "Time for Action" report.

In the circumstances, to learn of Prime Minister Manning's statement as reported in last week’s "Sunday Express" (November 3) that "we are trying to actively promote a regional airline in the Caribbean" came as a surprise.

A welcome surprise, mind you, if cynicism could give way to optimism. As they say, better late than never; and despite the early reservation of 'Butch' Stewart, while BWIA remains too pre-occupied trying to raise some US$13M in emergency assistance.

As informed regional technocrats as well as political leaders who have either retired from electoral politics or lost power at elections would have been reaching for relevant files or publications on this new 'talk' on a single regional airline and the woes of LIAT and BWIA, there came another surprise. This time a rather upsetting one.

It was the report out of Kingston last week that Jamaica and the USA had come to an "open skies" arrangement that would permit their airlines to freely access their markets.

JAMAICA’S SURPRISE
Why should this be upsetting? Simply because it is contrary to an earlier principled, collective stance by CARICOM states, including Jamaica, against entering into any such agreement with the USA unless mutually satisfactory conditions were obtained between America and CARICOM -- the latter as a negotiating bloc for some 15 countries.

The USA has been leaning heavily on CARICOM, right up to an informal meeting of top technocrats from both sides in Kingston Jamaica in 2000, and beyond, to sign on to its designed format for an "open skies" agreement.

It had done so against compliant responses by Latin American states, and ignored CARICOM's argument that while Latin American states had signed on individually, CARICOM must satisfy the national interests of all its member countries.

Hence the need for a CARICOM-USA "open skies" agreement. This did not happen. Now comes news of a Jamaica-USA pact.

The factors that would have made it necessary for Jamaica, of all CARICOM states, to break ranks from a collective, consensual approach on this vital issue, caught a lot of people by surprise.

When I spoke with Secretary General Edwin Carrington of the CARICOM Secretariat, he was both surprised and disturbed, explaining that if an explanation existed, then perhaps it was in the mail, as he was yet be officially informed.

I later telephoned Reginald Dumas in Trinidad and Tobago, one of the region's most informed public sector managers and former diplomat, now in retirement.

He was the number two man on a CARICOM technical committee negotiating with the USA on the "open skies" issue. He too was surprised and "deeply disturbed by this turn of events".

Dumas had earlier spoken with Ken Rattray who, as Jamaica's Solicitor General, and himself a highly respected regional technocrat, was the chairman of a CARICOM negotiating body on the "open skies" arrangement with the USA.

SOME CHOICES
The retired Prime Minister of St.Vincent and the Grenadines, James Mitchell, who had lead responsibility for air transport within CARICOM as a head of government, Dumas and Rattray, would easily qualify, among others, as informed contributors to any regional committee established to consider current financial problems of LIAT, BWIA and Air Jamaica, as well as the overall strategy for the establishment of a single Caribbean airline.

Among those Community leaders that gathered in Kingstown to assist LIAT with emergency support to overcome current financial hurdles, Prime Minister Gonsalves would have been a very consistent one for his significant support to keep LIAT afloat since coming to power some 19 months ago.

Goodwill was also well demonstrated by Prime Minister Arthur of Barbados, despite the factors, including disagreements over route rights, that had contributed to the collapse of the short-lived "Carib Express", of which he was among leading public sector players.

Prime Minister Manning, like other heads of government at that Kingstown meeting, ought to be aware of how 'American Airlines' and its subsidiary "American Eagle" continue to dominate Caribbean air routes to the disadvantage of regional carriers, with a virtual monopoly on the Puerto Rico-Eastern Caribbean routes.

Even now, while BWIA cries out for help, American Airline and its 'Eagle' subsidiary fly regularly into Piarco International from New York and San Juan respectively.

If today's CARICOM leaders are serious about their commitment --and we must give them the benefit of the doubt, in the face of all the negative developments since the idea was first mooted some 30 years ago -- then they should know where and how to begin.

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