Financially troubled carrier LIAT to reduce debt – planning employee layoffs

The financially strapped regional airline, Leeward Islands Air Transport (LIAT), has announced plans for a voluntary separation package that could result in more than 150 employees being removed from the company’s payroll.

According to LIAT CEO David Evans, the airline will embark on a process of cost reduction that will also include a reduction in the number of employees. “We will embark upon that process in full consultation with our staff themselves, and also their representatives. We would wish to achieve these reductions, where possible, on a voluntary basis,” he added.

The Chairman of the shareholder governments, Prime Minister Ralph Gonsalves of St. Vincent & the Grenadines, speaking at the end of a meeting in Bridgetown, Barbados, said that he plans were to reduce the airlines debt significantly.

He said it would involve reducing the staff number from 800 to about 620, “which should save us about EC$13 million (US$ 4.81 million) per year. The airline is looking to pay out a severance cost of about EC$22 million (US$8.14 million) in order to implement the empolyee voluntary separation package.

The meeting was also attended by host Prime Minister Freundel Stuart of Barbados, his Dominican counterpart Roosevelt Skerritt and Antigua & Barbuda’s Minister of Public Utilities, Civil Aviation and Transportation Robin Yearwood.

The regional shareholder governments also determined that LIAT would shift it’s base from Antigua & Barbuda where a number of aircraft will now be based in Barbados and Trinidad & Tobago. -(CMC)