Flights ‘on way back’


The majority of airlines which serviced Barbados before the COVID-19 pandemic are expected to return when commercial services resume.

However, acting head of Barbados Tourism Marketing Inc. (BTMI), Robert Chase, says while Barbados will be supporting airlines hit hard by the pandemic, it will not be through the minimum revenue guarantee (MRG) arrangement in which a government assumes a portion of the risk with the guarantee of a minimum level of revenue and profitability to an airline.

“Minimum revenue guarantees are a model used in the industry to support airlines and we have traditionally been moving away from that model. So we have reduced (aspects of airline agreements) to a very small proportion of our contract with our partners, including MRGs,” Chase said yesterday.

“Fundamentally, we have said to the airlines (we can be) partners either through co-op marketing arrangements or through full seat support, where we will support the number of seats they are bringing with a certain amount of financial support per seat.” (GC)


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