Tiara Air and DAE confirm a joint venture

It has just recently been confirmed that DAE and TIARA Air agreed, in principle and subject to further concord on detail, to enter into a joint venture.
This historical and unprecedented move on behalf of both companies is also unique in the aviation business in the Caribbean.
The venture will initially offer a major route — AUA-CCS-AUA – serviced by a Fokker 100 Jet aircraft.

The alliance between Tiara Air and DAE, may herald cosharing of more flights and a wide-range pooling of resources.

“In uncertain times,” explains managing director Raymond Maduro, “bold moves are necessary,” and in view of the airline industry’s rising challenges, Tiara Air decided to seek cooperation with other regional carriers as a way to increase service, lower costs and improve efficiency.

“Such alliances are taking place all over the globe,” Maduro adds. “This is the first such alliance in this region and it will result in major cost saving, improved efficiencies through network synergies and cross-selling. If the airlines save money, they will pass it on to consumers,” he concludes.  

“The carriers,” adds Alejandro Muyale, “are not merging; they are just collectively offering improved service in the local market, with the advantage of cross-selling tickets, sharing of aircrafts and crews and combined ground handling and fuel management operations.”

“The alliance,” Muyale states, “makes sense and is in line with what has been happening with other international airlines.” “If successful,” he predicts, “further initiatives will be pursued, seeking the blessing and the endorsement of the Department of Civil Aviation.

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October 14, 2008
Rona Coster