Unlocking Regional Air Connectivity: How Seat Guarantees Can Elevate Curaçao’s Aviation Strategy

By Interconsult Advisors (ICA)

In today’s competitive aviation landscape, small island economies like Curaçao face a unique challenge: how to attract and sustain air routes that are vital for tourism, trade, and regional integration. One powerful yet underutilized tool in this effort is the seat guarantee—a strategic incentive that can transform Curaçao into a regional air hub.

What Are Seat Guarantees?

A seat guarantee is a financial risk-sharing mechanism where a government, airport authority, or tourism board commits to covering the cost of a certain number of airline seats if they go unsold. This approach reduces the financial risk for airlines launching new or underserved routes, making it more attractive for them to invest in Curaçao’s connectivity.

There are several models:

• Minimum Revenue Guarantee (MRG): Ensures airlines receive a baseline revenue per flight.

• Block Seat Purchase: A fixed number of seats are pre-purchased by the government or tourism authority.

• Revenue per Flight Guarantee: Guarantees a minimum income per flight regardless of ticket sales.

Why Curaçao Needs a Seat Guarantee Program

Curaçao’s geographic isolation as a Small Island Developing State (SIDS) makes air connectivity not just a convenience, but a necessity. A well-designed Seat Guarantee

Program (SGP) can:

• Attract new regional routes to cities like Port of Spain, Santo Domingo, Kingston, and Bogotá.

• Support tourism diversification by opening access to new source markets.

• Enhance regional integration with CARICOM, the Dutch Caribbean, and Latin America.

• Stimulate economic growth through increased visitor arrivals, job creation, and trade.

A Strategic Fit for Curaçao’s 2025–2029 Vision

The proposed SGP aligns directly with the Hoofdlijnen Programa di Gobernashon 2025–2029, which emphasizes economic diversification, sustainable development, and regional cooperation. It also complements Curaçao’s National Export Strategy (NES) and the broader goals of the ICAO 2026–2050 Global Aviation Strategy.

How It Could Work

Interconsult Curaçao Group recommends the following framework: 

1. Pilot Program (2025–2026)

Launch with one or two strategic regional routes using MRGs, with performance-based KPIs such as load factors and marketing commitments.

2. Governance

Establish a dedicated Air Service Development Committee led by the Curaçao Civil Aviation Authority (CCAA), with participation from the Curaçao Tourist Board (CTB), Curaçao Airport Partners (CAP), the Ministry of Economic Development (MEO), and private sector stakeholders.

3. Funding Model

Adopt a public-private cost-sharing approach, potentially supported by regional development banks (e.g., CDB) or multilateral partners (e.g., UNDP).

4. Risk Management

Include sunset clauses, regular audits, and transparent reporting to ensure fiscal responsibility and program effectiveness.

Global Precedents

Curaçao would not be alone in this approach. The U.S. Essential Air Service (EAS) program, Dallas Fort Worth Airport’s incentive schemes, and similar initiatives in the Caribbean and Pacific Islands have all demonstrated the effectiveness of seat guarantees in enhancing air service.

The Way Forward

By implementing a Seat Guarantee Program, Curaçao can:

• Reclaiming its position as a regional aviation leader

• Drive sustainable tourism and economic growth

• Strengthening its role in regional and international networks

  
  

At Interconsult Curaçao Group, we believe this is not just a policy option—it is a strategic imperative.