{"id":184250,"date":"2023-09-04T07:34:57","date_gmt":"2023-09-04T11:34:57","guid":{"rendered":"https:\/\/antiguanewsroom.com\/?p=184250"},"modified":"2023-09-04T07:34:57","modified_gmt":"2023-09-04T11:34:57","slug":"antigua-govt-to-purchase-liats-assets-plans-for-new-airline","status":"publish","type":"post","link":"https:\/\/antiguanewsroom.com\/antigua-govt-to-purchase-liats-assets-plans-for-new-airline\/","title":{"rendered":"Antigua Gov’t to purchase LIAT’s assets, plans for new airline"},"content":{"rendered":"
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CMC – <\/span>The Antigua and Barbuda government says arrangements are being negotiated between LIAT (2020) Limited and the court-appointed administrator of the inter-regional airline, LIAT (1974), regarding the purchase of the assets of the bankrupt airline.<\/span><\/p>

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A statement issued following Thursday\u2019s Cabinet meeting noted that the press throughout the English-speaking Caribbean has carried stories indicating that LIAT is a necessary development partner throughout the Caribbean and must be resuscitated.<\/p>\n

\u201cOther states have been pursuing establishing another airline that wouldn\u2019t compete on LIAT\u2019s Routes; however, LIAT (2020) is more than a year ahead in its planning to replace LIAT (1974) Ltd. and is likely to outperform \u00a0the competitors.\u201d<\/p>

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The main shareholder in LIAT (2020) is the Antigua and Barbuda government, which has already indicated that it is prepared to invest between US$15-20 million in the new venture.<\/p>

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The statement issued after the Cabinet meeting noted that the new airline \u201cwill have a total of six planes and would\u2019ve already secured the Air Operating Certificate (AOC)\u201d.<\/p>\n

The statement said also that the Cabinet had invited to its meeting the Development Commissioner, who has been assigned the responsibility of negotiating the terms of the final agreement between LIAT (2020) Ltd. and the principals of Air Peace, a private Nigerian airline founded in 2013, \u201cfor the purpose of establishing a governing agreement between both carriers\u201d.<\/p>

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The announcement comes as St. Vincent and the Grenadines Prime Minister Dr. Ralph Gonsalves Tuesday said he had received a document from the Barbados-based Caribbean Development Bank (CDB) outlining a proposal for the financing and operation of a regional airline.<\/p>\n

Gonsalves told a news conference in Kingstown that the initial owners of the airline could be the governments of the Organisation of Eastern Caribbean States (OECS) \u201cbut we would have to engage the Caribbean Development Bank on this exercise too.<\/p>

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The OECS groups the islands of Antigua and Barbuda, Dominica, Grenada, St. Lucia, St. Vincent and the Grenadines, St. Kitts-Nevis, Montserrat, Anguilla and the British Virgin Islands.<\/p>

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Gonsalves said that while the location for a headquarters for the airline hasn\u2019t been discussed, he was \u201coffering\u201d St. Vincent and the Grenadines as one of the options.<\/p>\n

Speaking at a post-cabinet news conference, Information Minister Melford Nicholas told reporters that plans to establish a new regional airline showed exactly where Gonsalves \u201cstood all along\u201d.<\/p>\n

He said Gonsalves wants to improve the traffic coming into the international airport in his country by starting a new airline that will serve the Windward islands, namely Dominica, St. Lucia, St. Vincent and the Grenadines and Grenada with a sub-regional hub in Kingstown.<\/p>\n

Nicholas said that despite financial assistance from the sub-regional countries, St. John\u2019s is moving to ensure that LIAT (2020) becomes operational and will not be distracted .<\/p>\n

The announcement by the Antiguan government comes even as the Antigua and Barbuda Workers Union (ABWU) said it wants the court-appointed administrator Cleveland Seaforth, to provide the public with an update on the future direction of the company.<\/p>\n

ABWU general secretary, David Massiah, said efforts are continuing to secure severance payments for the employees of the airline that entered into administration in July 2020 following increased debt and the impact of the coronavirus (COVID-19) pandemic.<\/p>\n

The airline is owned by the governments of Antigua and Barbuda, Barbados, Dominica and St Vincent and the Grenadines, and while the Barbados and St. Lucia governments have made available funds to cover the three-year outstanding debt to the workers in their countries, that has not been the case with employees in the other islands.<\/p>\n

\u201cit is troubling to us in the Antigua and Barbuda Workers Union that we continue to call on the Prime Minister of Antigua and Barbuda \u00a0(Gaston Browne) to ensure that Seaforth, the LIAT administrator, at least declare to the public on the yielding of his administration over the last three years.<\/p>\n

\u201cThe administrator, at least declare to the general public on the yielding of his administration that has gone over three years (and) \u2026that was supposed to take 120 days.<\/p>\n

\u201cAnd so we denounce this sort of silence or dismissal by the government and the administrator that to date we have not been in a position to receive some sort of understanding as to how things can be moving forward\u201d.<\/p>\n

The union official said he was calling on Seaforth \u201cto clearly disclose to us what are the what are the situations, where we are, so people have an understanding because the people of LIAT that have been working are entitled to their rights, their severance are protected by international convention\u201d.<\/p>\n<\/div>\n

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CMC – The Antigua and Barbuda government says arrangements are being negotiated between LIAT (2020) Limited and the court-appointed administrator of the inter-regional airline, LIAT (1974), regarding the purchase of the assets of the bankrupt airline. A statement issued following Thursday\u2019s Cabinet meeting noted that the press throughout the English-speaking Caribbean has carried stories indicating […]<\/p>\n","protected":false},"author":12,"featured_media":153207,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":["post-184250","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"yoast_head":"\nAntigua Gov't to purchase LIAT's assets, plans for new airline - Antigua News Room<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/antiguanewsroom.com\/antigua-govt-to-purchase-liats-assets-plans-for-new-airline\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Antigua Gov't to purchase LIAT's assets, plans for new airline\" \/>\n<meta property=\"og:description\" content=\"CMC – The Antigua and Barbuda government says arrangements are being negotiated between LIAT (2020) Limited and the court-appointed administrator of the inter-regional airline, LIAT (1974), regarding the purchase of the assets of the bankrupt airline. 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