By: Staff Writer
January 9, 2024
Regional airline LIAT to official shut down on January 24 to make way for the new LIAT (2020)
In a letter signed by its court appointed administrator, Cleveland Seaforth said that despite the closure resulting in staff layoffs, a few personnel are anticipated to remain in order to supervise the final duties necessary for concluding the company’s affairs. According to one of the few remaining employees, this action is a part of the process to form its replacement, the projected LIAT (2020) Limited.
It is also reported that Mr Seaforth, has made the decision to permanently halt all commercial flying operations of the scaled-down LIAT (1974), effective from the end of business on January 24, 2024. This decision comes after careful consideration and evaluation of the current operations. LIAT had initially collapsed in 2020, resulting in numerous job losses throughout the region.
He added: “Due to the reasons mentioned above, we hereby inform you that your employment with LIAT (1974) Limited (in administration) will be terminated on February 4, 2024.”
Seaforth also informed the employees that the company is now unable to provide any severance payments. However, it assured them that it will fulfil its responsibilities regarding severance, vacation compensation, retroactive pay, and any unpaid salaries.
Antigua and Barbuda has allocated an estimated XCD30 million East Caribbean dollars (USD11.1 million) from its 2024 budget to breathe life into LIAT 2020 Ltd, the new company of the beleaguered Caribbean carrier LIAT 1974 Ltd, dba LIAT (Antigua and Barbuda) (LI, Antigua), Prime Minister Gaston Browne has declared.
Mr Browne also said: “Despite hurdles in 2023 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,” he told legislators on December 15 about the existing airline, as quoted by the Caribbean Media Corporation.
The shareholders of the cash-strapped carrier are the governments of Antigua and Barbuda, Barbados, Dominica, and St. Vincent and the Grenadines.
Browne said that following talks, several regional governments had expressed interest in partnering with Antigua and Barbuda to revive LIAT for the benefit of the region. The Barbados-based Caribbean Development Bank will play a role in cementing agreement between the governments, he added, and this will set the stage for finalizing a deal with Air Peace (P4, Lagos), “so that LIAT 2020 can begin operations, thereby securing a promising future for regional travel.”
Mr Brown also hopes that the January 24 shutdown of LIAT 1974 Limited will be followed by a smooth transition to LIAT 2020 Limited.
Browne stated on his weekly radio programme on Saturday that his administration is awaiting letters of no objection from the other shareholder governments of LIAT 1974 Limited before requesting authorization from the Caribbean Development Bank (CDB) to permit Antigua and Barbuda to acquire a minimum of one aircraft for LIAT 2020.
Antigua and Barbuda, according to Browne, hopes to acquire three LIAT aircraft from the CDB “at commercial value.”
“If everything goes as planned and the respective prime ministers and their governments take prompt action… provided that those letters are dispatched by early next week, we anticipate concluding the sale of the initial aircraft for LIAT 2020 within a few weeks,” he further elaborated.
“Our objective is to conclude the year 1974 by the conclusion of this month and simultaneously commence the year 2020.”