Caribbean Airlines makes USD31m in profit: CEO

Caribbean Airlines (CAL) chairman George Nicholas recently stated “CAL is a profitable organisation” and believes the company will report a profit of USD31 million (TTD200 million) this year, "even with reduced fares and increased flights" (Stabroek News, 16-Nov-2011). Mr Nicholas also said Air Jamaica, after the merger, also made its first ever consecutive profit in its 50-year history.

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  Consolidation in the US regional airline industry has failed to mirror the success achieved by the country’s network carriers after the latest round of mergers were completed between Delta-Northwest and United-Continental. The tie-ups in the regional sector have only intensified cost pressures at the consolidating carriers, which have left them searching for a viable long-term business model. In the short term, some of those airlines are attempting to work with their major partners to ease the cost inflation, but it is far from certain if legacy airlines intend to show any sympathy to their feeder partners.

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