Caribbean Airlines gets two years to turn profitable or face overhaul
PRIME minister of Trinidad & Tobago Kamla Persad-Bissessar has issued a stern warning to Caribbean Airlines Limited (CAL), giving the State-owned carrier a two-year deadline to become profitable or face a complete overhaul of its management team.
Addressing State board members at the United National Congress’ “First 100 Days in Office” meeting in Couva on Monday night, Persad-Bissessar accused CAL of chronic mismanagement and an over-reliance on taxpayer-funded bailouts, despite operating with consistently high passenger loads.
“Caribbean Airlines… they have 86 people in their financial department. But guess what? They have spent over TT$60 million hiring Ernst & Young and Pricewaterhouse to conduct audits. Eighty-six people on your staff. Billions and billions being paid out like this. To date, Caribbean Airlines has not submitted an audited financial statement for the last nine years,” she said.
The prime minister further disclosed that not a single route in CAL’s network is profitable, calling into question the sustainability of its operations.
“Not one single Caribbean Airlines route is bringing a profit. Yet planes are filling up every day, going and coming… Your future is in your hands,” she told the airline’s leadership. “No longer will we accept taxes paid by ordinary citizens… to keep CAL and allow this management to receive large salaries for doing what? Failing in their jobs?”
The remarks represent one of the strongest public rebukes of CAL’s performance in recent years and underscore the Government’s shift away from unconditional financial support for underperforming state enterprises. Recent reports suggest that the prime minister is set to review Trinidad and Tobago’s failing industries with intent to put them to rest in a span of two years.
Since its formation in 2006 following the collapse of British West Indies Airways (BWIA), CAL has been heavily dependent on government injections to cover operational shortfalls. In 2010, it absorbed the loss-making Air Jamaica in a deal backed by both the Trinidad and Tobago and Jamaican governments, a move that significantly expanded its network but added to its financial burdens.
Over the years, the airline has invested in fleet upgrades — including the introduction of Boeing 737 MAX 8 aircraft and ATR 72-600 turboprops — and opened new routes across the Caribbean and into North and South America. However, persistent fuel costs, currency fluctuations, and competition from low-cost regional carriers have kept profitability out of reach.
Government records show CAL has received hundreds of millions of dollars in subsidies over the past decade, prompting growing calls for greater transparency and performance accountability. The announcement was met with applause from many Trinidad and Tobago citizens who took to social media to throw their support behind the prime minister.
PERSAD BISSESSAR…Not one single Caribbean Airlines route is bringing a profit. Yet planes are filling up every day, going and coming… Your future is in your hands. No longer will we accept taxes paid by ordinary citizens… to keep CAL and allow this management to receive large salaries for doing what? Failing in their jobs?