Antigua seems to be alone in plans for a new LIAT – PM Browne
Gaston Browne, the Prime Minister of Antigua and Barbuda, says that the island seems to be on its own when it comes to making a new company to replace LIAT (1974) Limited, which went out of business in 2020.
LIAT (1974) Limited, based in Antigua, went into administration in July 2020 because of rising debt and the effects of the COVID-19 pandemic.
The government of Antigua and Barbuda, Barbados, Dominica, and St. Vincent and the Grenadines all own the airline. Since November 2020, a smaller version of the carrier has been running on a reduced schedule with a smaller staff.
But Browne said that he now realizes that “Antigua and Barbuda is practically standing alone in terms of having an entity that is owned by a group of governments.
“At the moment, most heads seem to think that there are enough assets in the region. In fact, the Caribbean Development Bank and the Organization of Eastern Caribbean States (OECS) did a study, and I went to a meeting about it in St. Lucia, where everyone agreed that the region has enough assets to meet its needs.
Browne said that “most of the assets are owned by the private sector, and they don’t think it’s necessary for the government to invest in any national or regional airline.”
Last month, the leaders of the Caribbean Community (CARICOM) met for their 44th regular summit in the Bahamas. They left with no closer to a solution to the problems that travelers in the region are having since the collapse of the regional airline LIAT in 2020.
Dominica’s Prime Minister Roosevelt Skerrit told reporters, “We’re still talking about it, and we’ve asked the Caribbean Development Bank (CDB) to look into the problem we’re facing and come up with some suggestions on how we can solve the problem of travel within the region.”
LIAT used to fly to several places in the region before it went bankrupt. Since then, it has cut back on its operations and now only flies to Anguilla, Antigua, Barbados, Dominica, Guyana, Grenada, Guadeloupe, Martinique, San Juan, Puerto Rico, St. Kitts, St. Lucia, and St. Maarten.
In February, the government of Guyana said that it hasn’t promised to invest in LIAT, a regional airline that is short on cash, but that it still wants to be “part of a solution for regional air transportation.”
Last month, President Dr. Irfaan Ali told the Guyana-based online news site Demerara Waves Online News that his government has been asked to help Antigua’s LIAT get back on its feet and that the governments of Antigua and Barbuda and St. Vincent and the Grenadines have been talking with his government about a “possible role” in a revived regional carrier.
“They asked us to help come up with a solution. “Of course, part of the solution could be to look at investments and the debts owed to Guyana,” he said, adding that countries haven’t decided yet how they will help Guyana.
Browne also said that his government would not talk to trade unions here about paying out severance to former LIAT workers until other shareholder governments joined the talks. The former employees are owed millions of dollars in severance pay and other back pay. One EC dollar is worth about $0.37 US cents.
Browne said that the local trade union is being unreasonable when it asks his government to pay all of the workers who are still owed money.
“Well, I think that if this problem is to be solved in the future, there may have to be some cooperation…a joint effort to involve all of the shareholding governments, because I don’t see us having any talks with a union about 100%…”
Browne said last Friday that the government gave LIAT $1 million to fix one of the airlines. He added, “So you could see the commitment, and the commitment for Antigua and Barbuda is helping regional people connect.”
In January, the government of St. Lucia kept its promise to pay compensation to former employees of the cash-strapped regional airline. Labour Minister Dr. Virginia Albert-Poyotte told them to use the money wisely.
The government gave bond certificates to the former local LIAT workers. These certificates can be turned in for cash and can also be used as collateral to get a loan.
