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Caribbean Airlines sensibly axes London as it works toward sustainability and survivability

Analysis

Beleaguered Caribbean Airlines is exiting highly unprofitable trans-Atlantic operations in early 2016 when it ends service from its Port of Spain hub in Trinidad to London Gatwick. The airline resumed London flights in 2012 but struggled to compete against European carriers.

The route should arguably have ceased at least two years ago as Caribbean Airlines has been loss making for years amidst pilot unrest, numerous executive changes and increased competitive pressure on key North American routes. Part of the reasoning for cutting the long-haul flights is to compete more strongly with LCCs on strategic North American routes including Fort Lauderdale, New York and Toronto.

Caribbean Airlines finally appears to be taking some rational steps toward achieving profitability as subtle shifts are occurring in the aviation landscape within the region. As Caribbean Airlines shrinks in the hopes of turning a profit, the already profitable InselAir Group is becoming a powerful force in the Caribbean with its latest push from hubs in Curacao and Aruba.

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