The CDB Board of Directors has approved a technical assistance grant to build interim solutions to solve the Eastern Caribbean’s air transportation challenges after LIAT’s bankruptcy.
The CDB will finance consulting services to design urgent interim steps to restore regular air transport in the sub-region. Another intervention will investigate lasting solutions.
Antigua and Barbuda, Barbados, Grenada, Guyana, Saint Lucia, and St. Vincent and the Grenadines requested help to address airlift capacity concerns. The consultancy will develop interim solutions to reduce the existing capacity deficit and specify immediate activities required of participating Governments to restore regular inter-island air service. The consultant must also give project management to implement accepted solutions.
LIAT, the largest intra-island air carrier in the Eastern Caribbean, collapsed after the COVID-19 outbreak and severely cut flights. LIAT runs 50 flights a week, 90% fewer than before its dissolution. Reduced airlift capacity has hampered the transportation of products, services, and people, hurting tourism, trade, employment, commercial activity, and social interactions.
“The intra-regional movement of people and commodities is vital to regional cooperation and integration,” said CDB Vice President, Operations, Isaac Solomon. “We have consequently placed a high focus on supporting reliable and cost-effective air transportation within the Region.”
“The proposed technical assistance will provide member nations with credible choices for urgent airlift capacity improvement, a costed and fully funded business plan, and personnel considerations for implementation,” he added.
The CDB Board authorised the funding on December 9, 2022.
