The St. Lucia government says it will not be giving new financial support to regional airline LIAT, but is instead considering alternatives for intra-regional travel.

Tourism Minister Allen Chastanet said the decision was made at a Cabinet meeting, following urgings by shareholder governments - Barbados, St. Vincent and the Grenadines and Antigua and Barbuda - for other regional countries to invest new equity in the financially plagued carrier.

The St. Lucia government recently announced that it would allow the United States-based American Eagle airlines to service the Barbados to St. Lucia route from September 4, as a to Antigua-based LIAT, whose fares it considers expensive.

The move by Castries had been criticised by St. Vincent and the Grenadines Prime Minister Dr. Ralph Gonzalves, who felt that St. Lucia should instead pump financing into the regional airline to help bring down its costs.

RESPECT

"As I have said to Prime Minister Gonzalves, with the greatest amount of respect, I do not interpret that he is subsidising St. Lucia," said Chastanet.

"Let's not forget that Antigua, St. Vincent and Barbados,the money they are putting into LIAT, they are receiving increased equity in the airline, which is diluting the equity of the other destinations, and we are comfortable with that position."

"One has to question, why have 15 airlines gone out of business in the last 10 years in this region, and what is the structural problem that has caused that?" he said.

Castries, meantime, has reiterated its preference for a policy on regional carriers.

"But in the absence of that policy, our Cabinet has met, discussed the issue, and decided that it was not in favour of investing in LIAT but would instead seek to create an environment in which other airlines would come in and serve this region," Chastanet said.