St Kitts and Nevis (WINN): Grenada is to make a one-off payment to LIAT, followed by monthly payments based on load factor.
That’s according to Now Grenada, which is associated with MTV News Grenada.
It quotes Caricom Affairs Minister Oliver Joseph as disclosing that the government in St Georges will be contributing to the survival of LIAT by making a lump sum payment in March to ensure the regional airline continues flying.
According to Now Grenada, the Keith Mitchell-led NNP government will also provide additional monthly payments based on load factor to the island.
“We will make a cash contribution to LIAT this month and going forward we will pay LIAT additional funds based on load factor. Government’s decision is based on what was presented at the recent intersessional,” Joseph said.
Caricom as a body is reported to have called on all member states to contribute to LIAT’s survival.
Joseph said the size of Grenada’s contribution will be based on a report from the company’s Board of Directors.
He expressed optimism that whatever Grenada contributes, will ensure LIAT’s survival in the short term.
Joseph explained that government has requested the regional airline submit a formula to them about its restructuring plans, because that formula will be used to determine the amount the contribution that will made be under the load factor arrangement.
LIAT needs an immediate financial injection of US $5 million to keep flying.