Barbados Today: “From all indication, LIAT will be liquidated,” Prime Minister Gaston Browne has just announced.
The Prime Minister said there will be a meeting of all shareholders shortly to discuss collapsing LIAT.
A new entity will be formed.
“COVID would have actually, let’s say increased the losses exponentially, so whereas in all of 2019 LIAT made a loss of about EC$12 million, that was within the means of the shareholder governments to subsidize,” Browne said on local radio in Antigua.
“You would have found that since COVID, the planes have been grounded, they have to pay the lease payments and they are not getting any revenue.
“A decision will have to be made to collapse it and then maybe the countries within the region will have to come together to form a new entity,” Browne added.
The Antigua and Barbuda leader says he cannot see the region moving forward without a form of connectivity and you cannot have an integration movement if people cannot connect.
New entity will require full cooperation
Browne said the new entity will require full cooperation with a mixture of public and private capital.
“What I’m hoping that we do not have going forward with the new entity, is any squabble over the location of the headquarters,” Browne said.
“At the end of the day, the only service that Antigua and Barbuda has enjoyed … within CARICOM is LIAT and this has been the case for several decades.
“So I just hope that we are not going to have countries within the region opportunistically fighting us to get the headquarters in their country to displace Antigua and Barbuda,” added Browne.
Leeward Island Air Transport was established in 1956 on the island of Montserrat. In 1971 Court Line Aviation of the UK acquired control and renamed the airline LIAT. Ownership of the airline was acquired by 11 Caribbean Governments in 1974 and it was renamed LIAT (1974) Ltd.