Gonsalves defends LIAT surcharge

The fuel surcharge imposed by LIAT "has caused some pain" for passengers, but Prime Minister of St Vincent Dr Ralph Gonsalves says it is necessary to help the cash-strapped airline raise revenue.

LIAT announced mid-August that the fuel surcharge is based on mileage and that passengers will be charged US$12.50 for a one-way trip of up to 150 miles; US$17.50 for a one-way trip of between 151 to 300 miles; and US$20 for a one-way trip above 300 miles.

Gonsalves told reporters that LIAT's fuel cost in 2010 was EC$10 million (US$3.7 million) more than 2009 and this year would amount to EC$26 million (US$9.6 million) more than two year ago, if fuel prices remain as they are.

"When LIAT had to put on the fuel surcharge, we hear a lot of complaints but it is something we had to do. If we didn't take the step to put on the fuel surcharge, the losses for the year would have been entirely unsustainable," Gonsalves said.