Pan-Caribbean Airlines: Unlocking Regional Aviation Potential

Abstract

The Caribbean\u27s air transport system is facing significant challenges, including operational fragmentation, excessive costs, and inadequate inter-island connectivity. These challenges limit its ability to support the region’s heavily tourism-dependent economies. This research evaluates whether consolidating small Caribbean airlines into a single or virtual Pan-Caribbean carrier could transform regional air travel. Based on financial analysis, historical traffic data, and case comparisons with airline mergers in South America and the US, the paper simulates the anticipated efficiencies resulting from route consolidation, fleet standardization, and common operational services. The research concludes that consolidation may create a regional GDP impact of up to $3.3 billion and generate over 200,000 new jobs. Research highlights regulatory harmonization, stakeholder coordination, and governance reforms as essential conditions for success. Despite transparency challenges, a unified Caribbean airline offers a compelling path to regional economic integration, improved connectivity, and long-term sustainability in aviation