BRIDGETOWN, Barbados (CMC ):

There were clear indications Wednesday from officials of regional air carrier, Leeward Islands Air Transport (LIAT), of increased airfares as a result of the planned merger with Caribbean Star.

LIAT Chief Executive Officer Mark Darby told reporters at a media briefing here that the new entity - LIAT-Star of the Caribbean - intended to become profitable soon after the merger and could not make a profit under the present fare structure.

Investment

"If you look at the investment that we make to carry our passengers and all the other agencies that we have to deal with that are taking their part of it, the airports, the handlers, the fuel companies, the aircraft manufacturers; out of all of that, historically we've been making nothing, " Darby said.

"We need to make a profit. If you're seeing higher fares, it's because frankly between us, (LIAT and Caribbean Star) in trying to compete with each other and trying to fill our empty seats, we've been driving the price down and down and down.

"I think it's been great for the travelling public but it's an unsustainable position, and we cannot afford to carry on effectively subsidising air travel," he said.