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Entry of new airlines to the CARICOM region is severely restricted and as a consequence regional airlines charges higher airfares

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Entry of new airlines to the CARICOM region is severely restricted and as a consequence regional airlines charges higher airfares than US airfares for routes of comparable distances. An airline expert estimates the annual air travel demand between Trinidad and Antigua to be:
Q = 1,000 – 10P; where Q is the number of trips in (000’s) and P is the one-way fare in US dollars. In addition, the long-run average cost (one-way) per passenger is estimated to be $50

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