(Barbados, TIA2000) "Airline blames Govt for limbo"

islandflyer
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(Barbados, TIA2000) "Airline blames Govt for limbo"

Unread post by islandflyer » Sun May 06, 2018

Barbados Sunday Sun newspaper

(Barbados, TIA2000) "Airline blames Govt for limbo"
Barry Alleyne
Sunday May 6, 2018

Trans Island Air (TIA) 2000, a small regional airline operating out of Barbados, has been forced to suspend all flights for the next 60 days as it battles to remain competitive in what it sees as the absence of a clear aviation policy.

And the airline is contending the Barbados Government is partly culpable in TIA being forced to suspend its operations.

"The decision to suspend commercial operations was made to safeguard the financial interest of the investors. No airline can be viable when the environment created by its own Government is this hostile," a senior official, who requested anonymity, told the Sunday Sun.

"The commercial environment created by the Government of Barbados for TIA is highly politicised, discriminatory, dysfunctional and hostile," the official also claimed.

The source noted that as far back as the first quarter of 2015, TIA sought from Government traffic rights between St Vincent and the Grenadines, on the one hand, and St Lucia and Dominica, on the other. Although those rights were granted by Dominica and St Lucia, TIA was unable to exercise them because Barbados did not secure them from St Vincent and the Grenadines.

"In fact, they do not seem to have been requested by Barbados on behalf of the carrier," the source contended.

In the latest development, management of TIA met with Minister of Tourism and International Transport Richard Sealy on April 18 to discuss their long outstanding route rights request and rights that were unilaterally given to Vincentian carriers by Barbados.

According to the source, the minister admitted that following a call from the prime minister of St Vincent and the Grenadines [Dr Ralph Gonsalves], Barbados has allowed a third Vincentian carrier full traffic rights into and out of Barbados (to and from St Vincent and to and from third countries), even though the Bilateral Air Services Agreement currently in effect between the two countries limited designation by St Vincent to a maximum of two carriers (Mustique Airways and SVG Air).

He said TIA had been completely ignored even though its management made it clear that time was of the essence, since the fixed cost associated with maintenance of the air operators' certificate exceeded BDS$300 000 per month.

Efforts to reach Minister of International Transport Richard Sealy were unsuccessful.

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Re: (Barbados, TIA2000) "Airline blames Govt for limbo"

Unread post by bimjim » Mon May 07, 2018

And so the blame game starts.

The owner of TIA2000...
  • makes promises to various regional governments,
    • then puts mid-sized aircraft on the routes that cannot use all of the installed seats when baggage is added,
      • then is unable to attract more than two or three passengers per flight,
        • and then has the cojones to blame the governments when his erratic, incompetent and abusive management is unable to make a profit.
As he himself is famous for saying, "Only accountants are qualified to run airlines." Which, I suppose, combined with one airline failure after another, should now say a great deal - to us - about his professional accountant qualifications, because he certainly has demonstrated - over and over again - how BAD he is at running a small insignificant airline.

Perhaps Mr. Bruce Kaufman should concentrate on selling faulty baby cribs to Americans, which is his main business, and stop deluding himself that he is some outstanding airline CEO. Fact is, he sucks, BIG TIME, at people skills AND accounting.

But no doubt Brucie will be back in our faces in a few years with TIA 2020 - and perhaps yet another failure?

Bye bye, Brucie, don't let the the prop nick you on the way out.

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Re: (Barbados, TIA2000) "Airline blames Govt for limbo"

Unread post by islandflyer » Sun May 13, 2018

"a senior official, who requested anonymity"
:D
Gee, I wonder who THAT could be?

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Re: (Barbados, TIA2000) "Airline blames Govt for limbo"

Unread post by bimjim » Sun May 13, 2018

May 13, 2018
Comment by Tomas Chlumecky

The aviation business in the Eastern Caribbean is full of political BS, everything revolves around money-losing LIAT (5 x ATR-72-600, 5 x ATR-42-600), which is primarily owned by Barbados now, with small minority ownership by Antigua and Barbuda, St. Vincent and the Grenadines and Dominica.

LIAT is one of only 2 multi-national airlines left in the world (SAS the other), a business model of the 1950's to the 1970's when governments thought it was a good idea to co-own a national airline with other countries.

From 1946 to 1977 there was East African Airways (EAA), Kenya, Uganda and Tanzania working together, then in 1975 with $120m in debt, no one wanted to pay up, and in 1977 they split and all had their own national carrier, Uganda Airlines, collapsed, Air Tanzania struggled and was flat lining till now, and Kenya Airways did well till recently.

Air Afrique, 1961 to 2002, 11 ex-French colonies got together, and it was too political with 11 states, then in 1971 Cameroon pulled out to form Cameroon Airlines, in 1976 Gabon pulled out to form Air Gabon, meanwhile Togo, Sierra Leone and Mali joined.

In the 19080's "Africanization" started, ex-pats out, political appointees came in and by 2001 with $431m in debt it was downhill, with just 6 aircraft and 4,600 employees, it was over.

Malaysia-Singapore Airlines (MSA), 1966-1972, eventually broke up and we had Singapore Airlines (SIA) and Malaysia Airlines (MAS).

Gulf Air, 1974 to present, started off with 4 owners, Qatar, Bahrain, Abu Dhabi and Dubai each with 25%, later to be joined by Oman.

In 1985, Dubai left to form Emirates, then in 2002 with financial problems within Gulf Air, Qatar left to form Qatar Airways, followed by Abu Dhabi left to form Etihad Airways, and in 2007, Oman left to form its own Oman Air, and Bahrain now owns 100% of Gulf Air from 2007.

SAS, 1951 to present, today 50% id owned by the 3 governments of Sweden (21.4%), Denmark (14.3%) and Norway (14.3%), and both Denmark and Norway have talked of reducing or eliminating their ownership in the airline.

This multi-national ownership does NOT work in the long run, governments change, country relationships change and today in 2018, its dinosaur business model and no better example of it not working than LIAT, where governments bicker over where maintenance should be where flight crews should be based to routes and frequencies.

Its why countries like Grenada, St. Lucia, and St. Kitts and Nevis just stay out of pumping more money into it, all looking for better options. LIAT does not allow any direct competition, even from DHC-6 Twin Otters, which can do no harm a ATR operation.

Two years St. Kitts and Nevis appointed St. Maarten based Winair (5 x DHC-6-300) as its national carrier, to provide badly needed service between St. Kitts and Nevis with connections to St. Maarten, as LIAT was not going to do it, so they took the decision and go to a foreign carrier to do what is essentially a cabotage service (8th freedom).

Mr. Bruce Kaufmann of TIA2000 has been in the Caribbean a long time, he knows the BS that goes on in aviation, he ran Carib Aviation in Antigua & Barbuda for awhile until it went bankrupt, and he's owned TIA2000 for some time, in fact shut it down in mid-2016 over problems with Barbados and import duties on his Beech 99's and King Air 100, then re-started again a few months later, just BS on his part too.

To blame Barbados is right, but then blame all the islands for ill-conceived air transportation model, that relies on LIAT and CAL for inter-island travel, yet LIAT's history included 2 subsidiaries flying DHC-6 Twin Otters and BN2 Islanders.

You need to know the history of events to see through the BS that is out there in our industry, sadly few know aviation history today, and yet its so important to know to avoid the same mistakes of the past, which I see investors and executive do all the time, over and over again, this is why I like to say:

"Those who cannot remember the past are condemned to repeat it" ~ George Santayana

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