Island Aviation

Island Aviation (1015)

SOUTHLAKE, TX, USA, and San Juan, Puerto Rico Sabre Corporation (NASDAQ: SABR), one of the global leaders in travel technology solutions, reported its first quarter 2016 financial results this week.

Sabre reported strong growth in the first quarter 2016. “Our solid start to the year sets us on a course to meet our full-year operational and financial objectives,” said Tom Klein, Sabre president and CEO. “Our focus on creating platforms for innovation and enabling our customers' success continues to drive our growth. The breadth of our software solutions and depth of our customer relationships uniquely positions us to continue to define and lead the travel technology industry.”

The company’s business focuses on two lines of business and reports results in those categories:  Travel Network, a global travel marketplace that connects more than 420,000 travel agencies and travel management companies in more than 160 countries with airlines, hotels, car hire, cruise lines, tour operators and other travel suppliers across the world, and the Airline and Hospitality Solutions business, which provides technology software solutions and consulting to the global airline and hospitality industries.  For the first quarter 2016, highlights included:

                    Travel Network revenue increased by 23%, while bookings increased 28%

                    Travel Network growth was driven by last year’s Abacus acquisition and bookings growth across much of the world, driving global market share up 1.7 points to 37.4 percent

                    Travel Network experienced gains in every region

                    In the Airline and Hospitality Solutions business, revenue increased 16 percent

                    183 million passengers were boarded using the SabreSonic reservations system – a growth of 45 percent year-over-year.  The American Airlines migration in Q4 2015 and Air Seychelles SabreSonic migration in March 2016 contributed to this increase

                    In January 2016, Sabre closed its acquisition of Trust Group, taking the number of hotel properties using Sabre’s guest reservations system to over 30,000 worldwide

                    Significant progress on the rollout of the SynXis property management system in the first quarter, with hundreds of properties live, and implementation continued at Wyndham Hotel Group which operates more than 7,800 hotel properties worldwide

Outside of North America, the company reported the following:

  • In Latin America and the Caribbean region, Sabre Travel Network increased market share, consistent with the company growing market share in all operating regions.  Strategic airline customers based in Latin America continue contributing to 16 percent global revenue growth for Airline Solutions.
  • EMEA led global Travel Network growth, where bookings, driven by new agency conversions and solid share gains, increased 12 percent – more than five times the overall GDS market growth in the region
  • In APAC, the integration of the Abacus business into Travel Network continued to help drive growth and the strong market share in the region gives the company a platform for new business development.

“We continue to innovate to enable change in the industries we serve while earning a greater share of the technology spend in those growing sectors,” said Klein during a conference call to investors on April 28.  “We are seeing very positive customer response to our new product offerings and our ability to execute on our customers’ behalf.

“As the only provider that goes to market with our broad capabilities, we have a unique advantage of being able to see opportunities and needs across a very broad spectrum of the industries we serve.   Our customers expect us to bring them new innovations and new technologies that can have a big impact on their business.   As we execute against our deep investments in platforms, processes, and tools that increase our clock speed of innovation, we will capture a greater share of an increasing pie of technology spend,” said Klein.

“Every time we introduce new innovations like Sabre Red Workspace 3.0 in Travel Network and Revenue Optimizer in Airlines Solutions – two new products that will be on display at our upcoming Investor Day – we view that as an opportunity to not only increase our share of market, but to potentially increase the size of the overall spend in the market.   We are selling into a very good environment that rewards innovators and is hard on those competitors that cannot keep pace,” said Klein.

U.S.-based Sabre is headquartered in the greater Dallas-Fort Worth region of Texas, and processes more than US$120 billion of estimated travel spend annually, serving customers in more than 160 countries around the world.  It has nearly 10,000 employees globally. 

BRIDGETOWN, Barbados – Deann Pat Portia Plummer, 33, a LIAT flight attendant will appear in the District “B” Magistrate Court tomorrow on a number of drug related charges.

The St Lucian national has been charged with possession of five kilograms of cocaine, possession of 1.3 grams of cannabis, possession with intent to supply cocaine, trafficking cocaine, and the importation of cocaine.

Plummer, who arrived here on Tuesday, was interviewed by personnel from the Drug Squad.

She was subsequently referred to Customs and a search revealed five kilograms of cocaine in her handbag.

A search warrant was later executed at her apartment and 1.3 grams of cannabis were discovered. (Barbados TODAY)

SIMPSON BAY, St. Maarten - In a recent announcement Moody’s Investors Service (Moody’s) said it has “affirmed Princess Juliana International Airport Operating Company N.V. (PJIAE) rating of Baa2.” The rating outlook is stable.

“The affirmation of the rating and outlook is underpinned by the airport’s adequate financial metrics and enplanement trends,” Moody’s stated.

“The rating action also incorporates Moody’s views on the airport’s essential role for St. Maarten’s economy and its key role as a local hub connecting passengers to eight nearby tourist destinations,” it added.

According to Moody’s, “The stable outlook is a direct result of the company’s strengths,” taking into account the fact that PJIAE N.V. is a private corporation with limited and regulated government involvement.

The sole owner of all capital stock of SXM Airport is the Princess Juliana International Airport Holding Company N.V. (PJIAH), which is 100% owned by the Government of St. Maarten.

Moody’s further noted that, “an upgrade of the rating of St. Maarten could exert upward pressure on the assigned rating to SXM Airport.”

It said, “upward pressure could also occur if debt service coverage is sustained at 2.5 times or higher over the medium term, due either to increased passenger flows or cost containment measures.”

However, it also further stated that, “a downgrade of St. Maarten’s rating would exert negative pressure on the rating of SXM Airport.”

“Sustained material declines in enplanements at SXM Airport or debt service coverage consistently falling below 1.5 times and/or a decline in liquidity levels would also exert downward pressure on the rating,” Moody’s said and noted that the airport must therefore continue to be diligent.

“Our team has been working diligently to ensure that we meet the performance benchmarks set by our investors and maintaining our Baa2 rating is therefore good news,” said Larry Donker, deputy managing director of SXM Airport. “We must and will continue to do what’s needed in the interest of the company and those we serve”, he further stated.

ST JOHN’S, Antigua – The managing director of a Caribbean hospitality and tourism consultancy firm, has called on governments to reconsider their taxes on the travelling public.

Robert MacLellan said the various airline ticket taxes place a significant financial burden on business people travelling between the islands and on tourists from within and outside the region.

“The result is that the volume of Caribbean inter island air traffic has declined steeply over the last decade and the law of diminishing returns surely applies to the associated tax revenues,” MacLellan said.

He said that a similar situation exists with Caribbean hotels, “where several governments in the region have again increased hotel occupancy taxes, imposing a direct additional cost for those same “stay-over” visitors – business people and tourists.

“Hotel room taxes now average well over 10 percent across the Caribbean. Given the very high operating costs of hotels, particularly for smaller properties on the smaller islands, any additional occupancy tax cannot be absorbed within their room rates.

“The overall tax burden is part of the reason why there is a significant lack of re-investment in many Caribbean hotels with a consequent reduction in their level of competitiveness in an ever tougher global market place,” he warned.

ST JOHN’S, Antigua – Prime Minister Gaston Browne has once again scoffed at suggestions that regional airline LIAT would be better off financially with its headquarters based in Barbados.

Last week the Minister of Tourism and International Transport in Barbados, Richard Sealy, was reported as saying that such a move would be a sensible one which would redound to LIAT’s financial health.

“What is more relevant where LIAT is based in terms of its overall performance is where you have your hubs located. One of the things that we have discovered, is that because of the level of airlift that comes into Barbados, particularly from the UK [and the rest of] Europe, it makes more sense to have more LIAT aircraft based here,” Sealy said.

“The point is, having a large element of your flight operations at the VC Bird [International] Airport in Antigua, didn’t necessarily make as much sense as having some of the flights here . . . and we have an increase in the number of aircraft that are based in Barbados.”

But Browne, LIAT’s second largest shareholder Prime Minister told Caribbean News Service (CNS) that there is absolutely no discussion about moving the headquarters of LIAT to Barbados.

“In any event, Antigua and Barbuda enjoys Category One status and if you were to move LIAT to Barbados then clearly LIAT will then have problems flying into US territories including the Virgin Islands,” Browne said.

“The Minister misspoke. It is true that last year a decision was taken by the Board that there should be some redeployment of assets, particularly the number of airplanes that would be stationed in Barbados. That is distinct from moving the headquarters from Antigua and Barbuda. So the Minister may be comingling the issues.”

LIAT’s major shareholders are Barbados, Antigua & Barbuda, Barbados, St Vincent & the Grenadines and Dominica.

SIMPSON BAY, St. Maarten - The Princess Juliana International Airport, SXM, has received yet another international award for excellence – “The Majestic 5 Continents Award for Quality and Excellence” granted by Paris-based Otherways Management and Consulting (OMAC).

The gala event was held at the Intercontinental Hotel in Berlin, Germany at the beginning of this month. Mr. Anastacio Baker, SXM Airport’s Manager of Quality Assurance Department, received the award on behalf of the company.

“St. Maarten was the only Caribbean island honored at this ceremony, but also the only airport honored,” Baker said.

“This award is a bit different from all the other awards we have been receiving, as this one highlights our Quality and Excellence in service by the employees of SXM Airport,” he said, adding: “This is the first time that SXM Airport has been nominated and selected for this award, which celebrated its 15th anniversary this year.”

The award is designed to recognize outstanding companies from around the world for their firm commitment to quality, innovation and excellence. A total of 36 companies was recognized and honored this year, 20 of them in the Quality and Excellence category and the rest in the Green Era category.

According to Baker, “Each company gave a five-minute presentation. Everyone present was impressed with our presentation as it detailed our geographical location and its advantages, as well as our role as the hub airport for the neighboring islands and our ongoing capital improvement projects.”

“This award adds to the growing collection of international recognition, which SXM Airport has been receiving in the last few years,” note Larry Donker, SXM Airport Deputy Managing Director.

“It is really an honor to see that the work of our employees is not only recognized on a local level but also on an international platform,” Donker said, while congratulating “all employees of SXM Airport for their contribution to the safety, quality and excellent service provided daily at the airport.”

In Photo: Mr. Anastacio Baker holding the Quality and Excellence Award granted to SXM Airport. (SXM photo)

caption2 A Baker SXM 4 2016

BRIDGETOWN, Barbados – Businessman Robert Pitcher is calling for radical changes to the management structure of regional air carrier, LIAT, recommending former Minister of Tourism Noel Lynch as one of the people to lead this change.

With the sudden resignation of Chief Executive Officer David Evans, Pitcher today suggested that Lynch should be approached to take over the leadership of the problem-plagued regional carrier.

Describing the former Member of Parliament for St. Michael South as “a good tourism person” who had a good grasp of the aviation sector, the Marketing Consultant of Fun ‘N’ Sun Publishing Inc hinted that Lynch would be an effective CEO.

“It would be a great move by Prime Minister Freundel Stuart to reach across the political divide and recommend his former political opponent Lynch for the position of CEO. Lynch was a good tourism person and he understands aviation,” Pitcher said of the man who Stuart defeated in St Michael South in 2008 and again in the 2013 general election.

However, Lynch, who served as Minister of Tourism and International Transport from April 2000 to January 2008, was not Pitcher’s first choice to replace Evans. That honour went to Captain Nigel Harris, the founder and Managing Director of Montserrat Airways, which trades as Fly Montserrat.

“We have a private airline which is owned by a European called Fly Montserrat. He is Captain Nigel Harris and he should be asked to assume the office of CEO with the absorption of Fly Montserrat into LIAT. The same way that he is making a small profit for Fly Montserrat he may be able to do the same for LIAT,” Pitcher told reporters at the offices of Fun ‘N’ Sun at Rendezvous, Christ Church.

Pitcher also called for the dismissal of the entire board of directors of LIAT, insisting they should be replaced with regional business leaders with good track records.

He identified Barbadian businessman Ralph Bizzy Williams, who was involved with the doomed low-cost carrier, RedJet, but otherwise remains a successful entrepreneur, as a possible chairman.

He also proposed the recruitment of prominent local businessman Mark Maloney and counterparts from Antigua & Barbuda, Dominica and St Vincent and the Grenadines to make inputs into the running of the regional airline.

Evans resigned after less than two years on the job after what was reported to be a heated meeting of the board of directors last week.

The airline issued a terse statement yesterday confirming his resignation and thanking Evans, but giving no reasons for his departure.

Evans had replaced Ian Brunton who had an even shorter stint as head of the embattled airline.

Brunton resigned in September 2013 after one year in charge.

At his news conference today, Pitcher suggested that LIAT had moved away from its initial function as an island-hopping airline.

He said the current route structure, which includes direct flights from Barbados to some destinations, was unsustainable.

“I recently returned to Barbados on a direct flight from Trinidad and Tobago with only twelve passengers on board. This flight is only fully used at carnival time in Trinidad and Tobago.

“Similarly, it does not make sense to have a direct flight to St Kitts or Tortola. Flights going north or south along the chain of islands should be picking up and setting passengers as it serves the chain of islands,” the tourism marketing consultant and frequent flyer argued. (Barbados TODAY)

GEORGE TOWN, Cayman Islands Cayman Airways has received approval from the Cayman Islands Government to proceed with its Fleet Modernisation Plan.

This plan will commence in the fourth quarter of this year and will see the airline’s current fleet of 122-seat Boeing 737-300 aircraft fully retired and replaced with new Boeing 737-8Max aircraft, by 2020.

“This government is delighted to announce its approval of Cayman Airways’ Fleet Modernisation Plan in-keeping with the airline’s business plan,” said Deputy Premier and Minister for Tourism, District Administration and Transport, Moses Kirkconnell.

“The modernisation starts this year with the introduction of a next generation Boeing 737-800 to the existing fleet, followed by the phased introduction of four brand new, state of the art, Boeing 737-8Max aircraft between 2018 and 2020.  By 2020, the 737-300s will be retired and Cayman Airways will have a fleet complement of four 737-8Max aircraft that will not only give our National Airline the newest fleet in the region, but will also guarantee our growth in tourism air arrivals as we prepare our airport to accommodate more visitors and as our room stock grows accordingly.

“Cayman Airways will now have the range to be able to reach any part of the United States and most of Canada with a significant growth in capacity, poising the airline to increase the $200 million economic contribution to the local economy annually. We are also pleased to state that due to the airline’s continued positive financial performance, with the full support of this Progressive Government, no government guarantees or other contingent liabilities were necessary to achieve this milestone,” Kirkconnell added.

For the fiscal year 2014/15 Cayman Airways delivered audited financial results with a profit of US$3.64M and for the first eight months of the current 2015/16 fiscal year, Cayman Airways has already surpassed that profit. This strong financial performance has proved to be the foundation of the proposed fleet modernization program, as the airline has achieved an ability to accomplish the modernization program without the need for government to issue any guarantees or take on any new liabilities.

BASSETERRE, St. Kitts – The Minister responsible for aviation in St Kitts and Nevis says he hopes last week’s resignation of LIAT Chief Executive Officer David Evans will not prove too  much of a setback for the regional airline.

Evans, who was touted as a results-driven executive when he became LIAT CEO in April of 2014, resigned following what was described as a stormy meeting with the board of directors of the airline.

It remains unclear however, what was the exact catalyst that prompted him to walk away from a LIAT he indicated at the start of his stint that he would try his utmost to turn around the fortunes of the cash strapped regional airline.

Aviation Minister Brantley is hoping that LIAT will put this apparent setback behind it and move forward.

“It is our hope that that will not damage the fortune of LIAT too badly, that we’ll be able to find in quick order, someone who could manage the affairs of that airline” he said.

Trade Unionist Chester Humphrey’s TAWU represents some of LIAT’s workers.

He has expressed surprise at Evan’s going, and says the airline needs to adopt a business model that will provide more stability in terms of its leadership and operations (WINN FM)

PHILIPSBURG, St. Maarten – The permanent Committee of Parliament for Tourism, Economic Affairs, Transport and Telecommunications (TEATT), will meet on April 22ndwith representatives from Ava Airways.


The Committee meeting is set for Friday at10.00amin the General Assembly Chamber of the House at Wilhelmina Straat #1 in Philipsburg.

The agenda point is a discussion with representatives from Ava Airways concerning the business plan; the Sint Maarten Aviation Open Sky Policy; the private public partnership proposal with WINAIR; the intension with FAA IASA Cat 2 aviation rating and the circumvention, slanderous statement, discrimination and protecting of a monopoly in Air Transport within the Dutch Caribbean by the Government of Curacao.

Members of the public are invited to the House of Parliament to attend parliamentary deliberations. The House of Parliament is located across from the Court House in Philipsburg.

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