Barbados is to give up its majority ownership of regional airline LIAT, according to a report in Barbados Today.
According to the publication, Prime Minister Mia Mottley made the announcement in parliament this week.
It said the announcement comes amid speculation that Barbados may back the startup of a rival carrier involving Barbadian investors and a multilateral lender.
Prime Minister Mottley confirmed to parliament that her country has accepted an offer from Prime Minister Gaston Browne to take up most of its 49.4 per cent stake in LIAT, it was reported.
Antigua and Barbuda currently holds 34 percent ownership of the cash-strapped regional airline, followed by St Vincent and the Grenadines and Dominica to make up 94.7 per cent of the total, while private shareholders and staff own the remaining 5.3 per cent.
Saint Lucia’s Prime Minister Allen Chastanet has consistently made it clear that his administration will not support the regional carrier if there continues to be ‘business as usual’ at the airline.
However he has disclosed that Saint Lucia is willing to back a ‘new engaged LIAT.’
At the same time, Chastanet has expressed confidence that that there are other airlines that could very easily fill the gap if LIAT folds up.