(CMR) Cayman Airways will not face any major financial risk flying into Barbados as the eastern Caribbean country will be guaranteeing flights for the airline, CMR sources have revealed.
Several people have expressed concerns about the profitability of the route for the airline following an announcement on Monday that Cayman Airways will start flying into Barbados this October.
However, CMR understands that under a one-year agreement, Barbados will pay Cayman Airways for trips if they do not earn a certain amount each trip, approximately $30,000 each way. However, once the airline is earning a profit, Barbados will not pay (Listen to Sandra Hill explain on The Cold Hard Truth).
This new route is expected to bring benefits to both Barbados and the Cayman Islands, with Cayman Airway providing connecting flights out of Barbados to Los Angeles. People traveling from Manchester, England, via Virgin Airlines can also connect through Barbados to the Cayman Islands. The arrangement is expected to boost tourism for both nations.
Speaking at the announcement on Monday, the chairman of the Cayman Airways board, Dr. John-Paul Clarke, said the board is constantly reviewing destination opportunities to expand revenue.