LIAT 2020 is awaiting the issuance of ‘no objections’ letters from the shareholders
of LIAT 1974 Ltd. in order to purchase one of the three aircraft the company,
which is winding up, has on lease.
Prime Minister Gaston Browne is reporting that these letters are critical as they
will clear the way for the new airline – LIAT 2020 – to purchase one of the planes
in order to get an Air Operator Certificate (AOC). The new airline cannot
commence operations without an AOC.
“The hold-up now is that we are trying to purchase one of the aircraft of LIAT
1974 Ltd. However, ‘no objections’ letters from the shareholder governments are
needed to facilitate the sale and I have been told that those letters should be in hand
by this week. I am hoping that these letters will be sent so that we can complete the
purchase, perhaps as early as this week,” PM Browne stated.
He emphasized that LIAT 2020 cannot get the AOC without owning an aircraft.
“That is the issue right now. Once the letters are received, I can guarantee that the
purchase of the first aircraft may be completed by this week; the cost is somewhere
between 4 and 4.5 million dollars (US),” he reported.
The prime minister has indicated that the new airline will purchase the aircraft at
the current commercial value.
LIAT 2020 will be a joint venture between the government of Antigua and
Barbuda and the Nigerian airline, Air Peace. However, several Caribbean
governments have expressed an interest in participating in the ownership of the
airline. These include Dominica, Barbados, St Vincent and the Grenadine and St.
Kitts-Nevis.
Air Peace is expected to hold a majority stake in LIAT 2020 representing
approximately 70 percent. Antigua and Barbuda has indicated that it is prepared to
dilute its 30 percent shareholding to accommodate the other countries wishing to
participate.
LIAT 1974 Ltd. has been under Administration since 24th July 2020 when it
declared bankruptcy. Since restarting operations in November 2020, LIAT has
offered a limited schedule to destinations including Antigua, Barbados, the British
Virgin Islands, St Maarten and Dominica.
Cleveland Seaforth of BDO Eastern Caribbean is the cash-strapped airline’s court-
appointed administrator.
In a letter last week, Seaforth informed the Antigua-based airline’s staff that the
company will wind up its operations before month’s end.
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.”
PM Browne said the majority of LIAT 1974’s staff will be rehired at the new
company.
