[Date Prev][Date Next][Thread Prev][Thread Next][Date Index][Thread Index]

8684: 8676, Re:Haitian Airline (fwd)

From: Gilles Hudicourt <hudic@videotron.ca>

That Haiti can support its own airline, I am certain, but nowhere in the
World has any government, even serious ones, been able to maintain a
State-run airline without having to subsidize it with the people's money.
This includes airlines like Air France and Air Canada that lost money when
they were government run and became profitable ones once they were
privitized.  In Haiti, a Haitian Government-run airline would be run into
the ground in no time at all, and would absorb with it much of the country's
money.  This is a business that need to be done seriously by serious people
who know what they are doing.  Amateurs and those who want to make a quick
buck should look elsewhere.  I have often encouraged haitian businesspeople
to invest in a Haitian Airline to no avail.  There are over one million
Haitians living overseas plus those living in haiti, a good number of which
also travel.  I think that there are about 600,000 passengers to and from
Haiti a year, maybe more, I haven't at the figures recently. If each one
spends on average $200 on airfares, that is over 120 million dollars that
Haitians spend each year on airfare alone. Why we should leave it to
American Airlines is beyond my comprehension.  The myth that these companies
are too strong to compete against is just that, a myth.  Their operating
expenses are very high, they pay their employees high salaries, their
overheads are high.  As an example, Air Canada which is by far the biggest
carrier in Canada with about 200 jets has a seat/mile cost of $0.28
(Canadian dollars).  That means that it cost the company $0.28 to carry one
seat, one mile.  Miami-Port-au-Prince is 725 miles one way, so a company
like Air Canada would have a cost of about $408 Can ($270 US) for a round
trip ticket between Miami and Haiti.  It would have to sell tickets above
that price in order to make a profit.  A few years ago, a small company
called WestJet was created in Calgary that started competing against Air
Canada.  They ran a tight and lean company and were able to have maintain a
seat/mile cost of just $0.13, lest than half of Air Canada's.  Well WestJet
is here to stay and is growing every year.
Can a Haitian pull something like that off ?.  The most important thing is
already there, its the customer.  All that is required is the product.