Fears continue that regional air carrier, LIAT, could soon be a thing of the past.
According to the latest statement on the regional airline, shareholder Chairman, Ralph Gonsalves, the Prime Minister of St. Vincent and the Grenadines, expresses sentiments that the closure of the regional island-hopping carrier is imminent.
With recent wake-up calls for the airline to have greater financial support from governments in the region that would help it keep afloat, Grenada dished out some one million EC dollars.
This is because countries, including the four major shareholders – Dominica, Antigua/Barbuda, Barbados, and St. Vincent and the Grenadines – along with Grenada, agreed to contribute to a 5.4 million US-dollar bail-out, requested by the airline for its survival.
The feeling the Company is still in a mess is that most of the countries which use the carrier services are not responding favorably to the airline’s request.
Dominica, is being asked to contribute 347,938 US dollars in light of its 25 weekly flights; St. Vincent and the Grenadines, with 52 departures per week, asked to contribute 723,711 US dollars; Barbados, which has 116 weekly departures, the highest by LIAT, is being asked to contribute 1.614 million US dollars, Antigua/Barbuda, 69 departures, asked to contribute 960,310 Us dollars.
The deadline for payment was slated 15th March, but according to Dr. Gonsalves Grenada is the only government that has acceded to LIAT’s request, paying some 487,113 US dollars.
It should be noted that Grenada entertains some 35 LIAT departures weekly.
Dr. Gonsalves is saying that due to the lack of financial input from the other shareholding countries, LIAT’s closure is imminent.
He further stated that LIAT has a compliment of 10 aircraft – seven are leased and three owned by the Barbados-based Caribbean Development Bank (CDB), due to monies borrowed, and a decision will soon have to be made on the way forward.
Under the circumstances, there’s fear, however, that a new airline would probably have to be the next option for the region, if LIAT is closed.
However, Dr. Gonsalves express fears there’ll be consequences in terms of job losses.
In thinking about another option, Dr. Gonsalves indicated giving the airline to the private sector completely, while the third option was to close it down and start afresh.
