🛫 Cayman Airways' Barbados route financially secure

Cayman Airways' (CAL) agreement with Barbados to launch a route to the eastern Caribbean island ensures that the airline's costs are covered, plus a small mark-up, according to documents released under a Freedom of Information request. Despite only achieving 24% occupancy in October, CAL is not expected to suffer losses due to the deal's financial guarantees. The deal, which lasts for one year, allows CAL to explore an inter-Caribbean route without financial risk. If the route is successful, CAL will retain the profit. 📃

The agreement was previously undisclosed, but an internal review following a refused FOI application led to the release of the redacted deal with Barbados Tourism Marketing Inc. The airline officials explained that the revenue guarantee agreement was redacted in two places due to commercial value concerns that could prejudice CAL or Barbados Tourism Marketing. The released documents suggest that the guarantee is in Cayman Airways' favour. The route could also potentially attract European travellers flying into Barbados to Cayman, creating potential dual-destination vacationers. 🌐

Despite ongoing criticisms over its finances and the large subsidies it receives from the public purse, this deal is not expected to have an adverse effect on CAL. It could also potentially boost the Los Angeles route, as the timings of the two routes are designed to allow travellers from California to go to Barbados via Cayman and vice versa. ✈️