The recent escalation in airfare prices throughout the region has been a major talking point in recent times, and it was no different during the 45th meeting in Grenada last week of  Heads of the sub-regional Organisation of Eastern Caribbean States (OECAS).

Host Prime Minister, Dr. Keith Mitchell was among those who spoke on the issue of soaring airfares affecting travel throughout the region. In his address, Dr. Mitchell told the gathering that Grenada continues to be negatively affected by the high cost of air and sea transportation.

The fares, he said rank among the most significant of all the factors that impinge on the country¹s development. According to the Grenadian leader, there now exists a perception among traffickers and the wider business community that the high and rising cost of air transportation bears a direct relationship to the merger of LIAT and Caribbean Star, which essentially creates a monopoly.

He said he is concerned that all efforts at constructing a social, economic and politically cohesive OECS will flounder unless the problem is solved. Dr. Mitchell said that Grenada continues to carry costs for the airlines and in fact is still repaying millions in loans undertaken for previous restructuring exercises.

St Vincent and the Grenadines Prime Minister, Dr Ralph Gonsalves, had called on countries which have been critical of airfares since the LIAT and Caribbean Star started joint operations ahead of a formal merger to "come on board and put equity into LIAT or provide market support".

The St Vincent prime minister noted that some regional governments were already providing market support to foreign carriers flying into their countries in a bid to boost tourist arrivals."It is a strategic necessity for us to keep LIAT in the skies" he declared.

Dr Gonsalves who has responsibility for transportation matters in Caricom was responding to questions about the cost of air travel, especially the fares of LIAT and Caribbean Star. Incoming OECS Chairman Roosevelt Skerritt also expressed concern about the high cost of airfare in the region and called on the leaders to address the problem.

St. Lucia recently complained about the high airfares and also blamed them on the commercial agreement between LIAT and Caribbean Star which will see the two carriers merging fully by June 15.

Last week, the island¹s Tourism Minister Allan Chastanet announced that St. Lucia had entered into an agreement with American Eagle to enter the market in direct competition to LIAT in a bid to drive down the high fares.

Meanwhile, officials of LIAT have blamed taxes imposed by the government in Grenada for helping to drive up the cost of airline tickets to locals.

One official said that EC$230.00 is paid in taxes on every ticket sold on the island as contributions to government and the Grenada Airports Authority (GAA).