Discussion to establish a new regional airline

ROSEAU, Dominica, CMC -Prime Minister Roosevelt Skerrit says countries within the sub-regional Organisation of Eastern Caribbean States (OECS) are discussing efforts to establish a new regional airline, even as he insisted that governments should not play a significant role in the management of any airline.

Dominica, along with Antigua and Barbuda, Barbados and St. Vincent and the Grenadines, were the major shareholders of the regional airline, LIAT (1974) Limited which went bankrupt and is expected to wind up its operations in its current form on January 24.

In a letter to staff outlining the latest position regarding the Antigua-based LIAT (1974) Ltd. last Thursday, the court-appointed administrator Cleveland Seaforth wrote “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.”

Skerrit, speaking on the state-owned DBS radio, said he had always informed Dominicans that if “LIAT does not fly for one day in the Caribbean we will be in trouble.

“I always held the view that for you to have any sustained airline business in the Caribbean among these islands…governments must be involved. Governments must seek to underwrite certain portions of the expenses associated with running these airlines and this is why we invested in LIAT against all the public criticisms which were meted out to me when I took the decision to invest in LIAT.

“Dominica is still prepared to invest in any airline outfit that will serve the Caribbean because we believe that it is absolutely important,” he added.

During the presentation of his country’s national budget last month, Antigua and Barbuda Prime Minister Gaston Browne said his government had embraced the responsibility to restructure and resurrect LIAT, with a “with a vision of returning the airline to the regional skies”.

Browne said then the airline, which has been under administration since July 24, 2020, “has long been an essential thread in the fabric of Caribbean connectivity.

LIAT, prior to entering into administration had been servicing several regional destinations and has since scaled down its operations and is now servicing Anguilla, Antigua, Barbados, Dominica, Guyana, Grenada, Guadeloupe, Martinique, San Juan Puerto Rico, St Kitts, St Lucia and St Maarten.

“In 2023, despite hurdles, including unserviceable aircraft, unresolved issues for former workers, financial constraints, staff attrition, and disruptions caused by the hurricane season; LIAT 1974 Ltd operated a limited schedule, ensuring vital connectivity across destinations with 167 dedicated staff,” Browne said of the airline.

Browne said that the Barbados-based Caribbean Development Bank (CDB) will play a critical role in solidifying the arrangement among the governments, adding that this will set the stage for finalising the arrangement with Air Peace, a private Nigerian airline founded in 2013, “so that LIAT 2020 can begin operations, thereby securing a promising future for regional travel.”.

Browne said that in 2024, the Antigua and Barbuda government will spend an estimated EC$30 million (One EC dollar=US$0.37 cents)  to “ensure LIAT 2020 Ltd has all the aircraft needed and appropriate maintenance and operational arrangements are in place for the safe, reliable, and efficient delivery of service to the people of the region.

“In the spirit of optimism and faith in our ability to rise above challenges, we draw inspiration from the words, “the glory of the latter house shall be greater than the former,’ Browne told legislators, adding that “just as our nation has overcome adversities in the past, so too shall LIAT 2020 emerge stronger, more efficient, sustainable, and better positioned to serve the needs of our people and our Caribbean neighbours”.

Skerrit told radio listeners “my view is let us come together as governments.

“Okay, we need 20 million US dollars to start the airline, let us have a strategic plan for this airline, let us put in good management, an executive chairman, good board members, let the governments stay out of the running of the airline.

“Let the board and the management implement the strategy plan. I don’t believe in governments running anything and this is why we don’t own things in the private sector as a government.”

“Anytime we invest in anything that’s suppose to be in the private sector because there is a gap and I don’t believe in the government running anything. Governments should not be running anything, leave it to the private sector people to run this airline ,” he added.

“So we are having these discussions with some of the islands within the OECS about looking to see how we can work together towards introducing some kind of operations that will alleviate the situation within the Caribbean, but the Caribbean cannot grow to the extent that it wants to grow without addressing intra-regional travel,” Skerrit said.

In his letter, Seaforth told the staff the company was not in a position to make any severance payments at this stage, but indicated that it would not be shying away from its obligations to them on severance, vacation pay, retroactive pay and any outstanding salaries.

“The company recognises its obligation as it relates to any of the [aforementioned] applicable entitlements, which will be provided to you under separate cover within 45 days of this letter after the respective computations have been completed.”

The Antigua and Barbuda Workers Union (ABWU) says it is actively exploring options regarding the severance payment to former LIAT workers.

ABWU general secretary, David Massiah, said discussions are being held with other unions representing the former employees in the Caribbean.

“We have the legal team on the ground looking at everything and I am seeking more or less to get all the unions throughout the LIAT’s body to sit down…so we can come with a commonality to go forward.”

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