PM Gaston Browne eyes LIAT transfer to revamp airline

Prime Minister Gaston Browne of Antigua and Barbuda spoke of his aim to facilitate a convenient and easy switch from LIAT 1974 Limited to LIAT 2020 Limited, as the former ceases operations on the 24th of January, 2024.

Prime Minister Browne spoke about how the nation’s administration is waiting for the Caribbean Development Bank to receive no objection letters from the governments which are limited shareholders in LIAT 1974.

This will allow Antigua and Barbuda to purchase at least one aircraft for the benefit of LIAT 2020, if not more. Prime Minister Browne used his weekly radio program to reach out to his constituents regarding the latest developments in this regard, thus maintaining transparency about the transactions surrounding LIAT.

Prime Minister Gaston Browne mentioned the fact that he is aiming to help Antigua and Barbuda purchase 3 of LIAT’s aircrafts from the Caribbean Development Bank at commercial value, thus undertaking a transaction that would be beneficial for all parties involved. In a statement regarding the same during his weekly radio address, he added the following, “If all goes well and the respective prime ministers and their governments act with some urgency…on the basis that those letters go out by early next week, we expect to complete the sale of the first plane for LIAT 2020 and in a matter of weeks we can get the EOC. What we are trying to do here is to wind up 1974 by the end of the month and to start 2020 concurrently.”

According to sources, LIAT 2020 will be a collaborative venture involving St Vincent and the Grenadine, Nigerian airline Air Peace, Antigua & Barbuda, Dominica and Barbados.

Out of the various parties involved, Air Peace is expected to hold a majority share in the joint venture. Prime Minister Browne clarified that a significant portion of the staff employed by LIAT 1974 will be hired by the new conglomerate, thus alleviating worries regarding their job security and future.

LIAT 1974 filed for bankruptcy on the 24th of July, 2020, and restarted its operation only in November of 2020. Despite continuing to function, LIAT remained operable only to a limited degree, which was made evident by the fact that the airline scheduled very few flights to a frugal number of locations.

These destinations included the British Virgin Islands, St Maarten, Antigua, Barbados and Dominica.

The LIAT has been granted a court appointed administrator to maintain its baser functions. Cleveland Seaforth of BDO Eastern Caribbean has taken up this role to help maintain the limited operations of the airline while also helping facilitate a smooth transition.

Cleveland Seaforth also confirmed that the airline would be bringing its operations to an end before the month is out and has been responsible for informing the staff regarding the most recent developments.

In his official address to the 90 plus staff members of the organisation, he stated the following, “After careful consideration and evaluation of the present operations, a decision has been taken by the court-appointed Administrator to permanently cease all commercial flying operations as of the close of business on January 24, 2024. As a result of the foregoing, you are hereby notified that your employment with LIAT (1974) Limited (in administration) will be made redundant effective February 4, 2024.”