LIAT 2020, the airline entity that is being created to provide reliable air services
between the countries of the Caribbean, is one step closer to becoming a reality.
Prime Minister Gaston Browne has announced that one of the major hurdles,
securing approval from the shareholder governments of LIAT (1974) Ltd. for the
sale of the three aircraft that had been leased to the now-defunct airline, has been
overcome with all three governments giving that approval in writing.
Speaking on the Browne and Browne show on Saturday, PM Browne also
announced that the Caribbean Development Bank which financed the LIAT (1974)
Ltd.’s purchase of the three aircraft, has also signaled its approval of the purchase.
The Antigua and Barbuda and the CDB have agreed that the planes will be sold for
US$12.1 million. “We already have some of the money in an escrow account and
we are willing to make the first payment of US$4.1 million with financing for the
reminder already secured,” the prime minister declared.
The prime minister the new airline will have two shareholders initially and both
have committed to spend significant amounts to get LIAT2020 up and running.
“Along with the US$12.1 million that we will use to purchase the three aircraft, we
will have to send an additional US$8 million as only one of the planes is currently
operational. Air Peace, (the Nigerian airline) will spend another US$60 million
into the airline and they will be the largest shareholder and they will operate the
new airline. Together, this means that between our government and Air Peace you
are looking at EC$200 million dollars that will be spent to improve air connectivity
and to strengthen the integration movement,” PM Browne explained.
The prime minister scoffed at suggestions regarding Air Peace’s ability to live up
to its end of the arrangement and even the suggestion that some of its officers are
not able to travel to the United States.
PM Browne provided information indicating that Air Peace has just secured a route
to fly into JFK Airport in New York. “This confirms that Air Peace is the largest
airline in Africa which continues to expand. We are just happy to have this
partnership with them and to get LIAT 2020 going,” he emhasised.
The prime minister used the opportunity to restate his position on the decision in
the year 2020 at the height of the COVID-19 pandemic to close down LIAT (1974)
Ltd. and his government’s refusal to support that view. “COVID didn’t cause us to
close down LIAT, if anything, we saw an opportunity to ‘right-size LIAT’. There
is a principle that says wherever there is a crisis there is an opportunity; we saw
that opportunity and we took it,” he stated.
