Antigua and Barbuda has announced a 50 percent reduction in taxes on airline tickets for travel within several countries of the Caribbean Community (CARICOM) with St John’s indicating also that the measure will last for six months in the first instance.
“We think at this time where regional travel is relatively low, extremely flat that there is very little to lose and even though it may not be the best condition which to analyse the elasticity of ticket prices, it will give us some indicative indication as to how a reduction in pricing would impact on demand without creating a financial crisis” Prime Minister Gaston Browne said.
Browne said that a reduction in taxes would assist the cash-strapped regional airline, LIAT, which has been placed under court ordered administration.
