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NewsWhore
06-02-2008, 04:10 PM
Caribbean expert David Jessop says that the DR stands to be hit the hardest by the fuel crisis that is affecting the airline industry. According to Jessop, all around the world the biggest airlines are reducing services, increasing fares, levying surcharges and abandoning destinations as the cost of fuel continues to rise. "According to industry sources, those destinations likely to be hardest hit as the year proceeds will be those served by American Airlines, such as the Dominican Republic, the Dutch Antilles and a number of Eastern Caribbean nations served by American Eagle's San Juan hub, as these are replaced by less frequent direct services from the US mainland. They cite increased fuel costs coupled with the high levels of operating costs and taxes levied in the countries concerned as reasons for the choice of cuts to these and possibly other regional points.
When airline fares were dropping, the Dominican government padded them with increasing taxes and over the years this has added up to the point where the destination has the highest non-fare charges on tickets in the region.
Recommendations for tackling the situation will be presented at the First Annual Caribbean Tourism Summit, (ACTS) scheduled for Washington, 21-25 June.
Many of the solutions being considered concentrate on ways in which governments might reduce costs for the airlines and increase regional competitiveness. They focus on issues such as a reduction in landing fees, reform of the region's aviation standards, reducing the region's multiple air traffic control systems and navigation fees so that there is a single charge, as is the case in the European Union. They also focus on the ever-growing range of passenger taxes and airport fees and surcharges levied by governments on air travelers - but not on cruise ship passengers - that are often hidden in ticket prices.
http://dr1.com/trade/articles/681/1/The-View-From-Europe/... (http://dr1.com/trade/articles/681/1/The-View-From-Europe/Page1.html)

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