Grenada Comes to LIAT’s Rescue
Wednesday 6th March, 2019-Almost a week after it was revealed LIAT was quickly running out of money and there was need for Caribbean states served by the airline to contribute to its survival, Grenada has pledged to assist financially.
The Grenada government said Tuesday it would be making a “cash contribution” to cash-strapped LIAT.
Grenada’s CARICOM Affairs Minister, Oliver Joseph said “We will make a cash contribution to LIAT this month and going forward we will pay LIAT additional funds based on load factor.”
“LIAT is in a dire financial situation and that one-off contribution is to ensure that it continues flying so that cash contribution for March has nothing to do with the load factor,” he added.
The major shareholders of the airline are Barbados, Antigua and Barbuda, St. Vincent and the Grenadines and Dominica and Antigua and Barbuda Prime Minister Gaston Browne said last week that there are plans to encourage the governments of St. Kitts-Nevis, St. Lucia, Grenada and Guyana to become shareholders.
“There is a need for us to have a model of shared burden, recognising that from time to time LIAT would need some level of support. We have recognised that LIAT is making a significant contribution, not only in terms of the connectivity of people within the region, but even the airport taxes, the landing charges and so on that are earned by the various governments,” Browne said.
Joseph did not say how much money the Keith Mitchell government would pump into the airline, adding that it will be based on a report from the airline’s board of directors. He said the government has requested the regional airline submit a formula to regarding its restructuring plans because that formula will be used to determine how much the contribution will be under the load factor arrangement.