New LIAT airline set to launch in August

The government of Antigua & Barbuda is hopeful that LIAT 2020, the new regional airline, will begin commercial operations in early August. However, they are still awaiting a response from the Caribbean Development Bank (CDB) about their request for the bank and regional shareholder governments of the now-bankrupt airline to release their claims on an escrow fund, so the funds can be used to pay severance owed to former employees.

The shareholder governments of the previous LIAT (Leeward Islands Air Transport) airline are Antigua & Barbuda, Barbados, Dominica, and St. Vincent & the Grenadines.

Following the weekly Cabinet meeting, a statement noted that the ministers briefly discussed LIAT 2020 and its potential start-up date for resuming commercial flights.

“Although a precise date has not yet been decided, the Cabinet is confident LIAT will take to the skies in early August 2024,” the statement said.

Lionel Hurst, Chief of Staff in the Prime Minister’s Office, later informed reporters that LIAT 2020’s first commercial flight could coincide with the upgraded airport on Barbuda.

“Everything is ready in Barbuda. The runway is ready; the staff are in place for receiving flights. When LIAT takes off from Antigua as a commercial carrier, the first place it will land will be in Barbuda. That is the expectation at the new airport in Barbuda,” he added.

The new airport features a 6,100-foot runway, with plans to extend it by an additional 2,000 feet, bringing the total length to over 8,000 feet.

Antigua & Barbuda is collaborating with the private Nigerian-based airline, Air Peace, in establishing LIAT 2020. Earlier this year, Prime Minister Gaston Browne announced that Air Peace would invest close to US$65 million, while his government would invest US$20 million.

Additionally, the government stated it would contribute US$12.1 million into an escrow account to acquire more planes as efforts to launch LIAT 2020 Limited continue.

However, Browne is adamant that the CDB and the shareholder governments of LIAT (1974) Limited should relinquish their interest in the escrow funds.

“The Cabinet is still awaiting a decision by the Caribbean Development Bank in relation to US$12.1 million which Antigua & Barbuda has paid over for the purchase of three aircraft, and the re-purposing of that money to pay former LIAT employees,” the Cabinet statement noted.

Last month, the CDB, based in Barbados, stated that it is not a party to the sale agreement regarding the aircraft belonging to LIAT (1974) that went bankrupt. The bank’s role was only to provide consent for the sale, which it has done. Under the sale arrangement approved by the shareholder governments, the proceeds from the sale were to be proportionately allocated towards paying outstanding balances on CDB loans initially made to support LIAT (1974) Limited’s operations.

“The decision about the use of the sale proceeds rests with the shareholder governments. CDB is not involved in the financing or any aspect of the operations of LIAT 2020.”

Browne mentioned he would be writing to the shareholder governments of the defunct regional airline, suggesting they relinquish their interest in an escrow fund to finance severance payments owed to former employees.

“The Antigua & Barbuda government has always agreed to and maintained that the LIAT workers should be paid gratuitous payment representing the severance that would have been payable if the company had assets,” Browne said.

He stated that his administration initially proposed to pay 50 percent, but this was reduced to 30 percent “because of the lack of cooperation of the Antigua & Barbuda Workers Union”.

The Antigua & Barbuda Workers Union (ABWU) insists that former LIAT workers, including pilots, are owed millions of dollars in severance and other benefits and has called on the government to negotiate the package.