Premier Reuben Meade has announced plans for a year-long price cap on flights to and from Montserrat to help make air travel more affordable.
The proposal comes amid ongoing concerns over lack of ferry access to the island and the high cost of flights.
Speaking in a meeting of the Montserrat Legislative Assembly on 25 February, Meade, who also serves as access minister, briefly outlined the plan.
However, he did not specify the level of the cap or what the cost to the government is likely to be.
He was responding to a question from opposition leader Paul Lewis, who asked why tickets on Fly Montserrat and SVG are not subsidised, while Winair has a subsidised contract arrangement.
Meade said the government does not have the authority to regulate the pricing policies of private airlines.
“However, we have attempted to mitigate these costs through ticket subsidies, though this is not a sustainable long term solution,” he said.
“For the next 12 months, we plan to implement a price cap arrangement with current airlines to reduce ticket prices subject to the availability of financing.”
Winair contract
Meade went on to say that the six-week Winair service which is operating over the St Patrick’s Festival period of February and March is not subsidised, but contracted.
“We have contracted Winair to assist with the demand, and I can confirm that most seats are already booked, demonstrating the necessity of this measure.”
He added that by the time the Winair contract was signed, Fly Montserrat and SVG were already fully booked for the season.
The access minister said the additional flights allowed the government to alleviate the financial burden on passengers struggling to travel to and from Montserrat.
Opposition member Donaldson Romeo asked the premier for the monthly costs to contract Winair during February and March.
Meade responded that the the cost for February was US$27,300 and for March was US$252,700 – a total of US$280,000 or EC$756,000.