{"id":36186,"date":"2019-06-05T10:17:34","date_gmt":"2019-06-05T14:17:34","guid":{"rendered":"https:\/\/antiguanewsroom.com\/?p=36186"},"modified":"2019-06-05T10:17:34","modified_gmt":"2019-06-05T14:17:34","slug":"barbados-pm-announces-sale-of-liat-shares","status":"publish","type":"post","link":"https:\/\/antiguanewsroom.com\/barbados-pm-announces-sale-of-liat-shares\/","title":{"rendered":"Barbados PM announces sale of LIAT shares"},"content":{"rendered":"
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The Barbados government Tuesday night formally announced plans to sell its shares in the cash strapped regional airline, LIAT, but insisted that it was committed to regional transportation and would continue to hold minimum shares in the Antigua-based carrier.<\/p>

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Barbados along with Antigua and Barbuda, Dominica Grenada and St. Vincent and the Grenadines are the main shareholders of the airline that employs over 600 people and operates 491 flights weekly across 15 destinations.<\/p>\n

Prime Minister Mia Mottley in a statement to Parliament confirmed reports that Antigua and Barbuda would be seeking to replace Barbados as the largest shareholder government by seeking to acquire the shares Bridgetown would be outing up for sale.<\/p>

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Prime Minister Mia Mottley speaking in Parliament (CMC Photo)<\/figcaption><\/figure>\n

She said that Attorney General Dale Marshall would lead the negotiations.<\/p>

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\u201cThere is only so much that Barbados can responsibly do at this time given our current circumstances and our current position on the journey which I referred to just now,\u201d she said, having earlier made reference to the island\u2019s multi-million dollar agreement with the International Monetary Fund (IMF) to turn around the ailing economy.<\/p>\n

\u201cTherefore\u2026notwithstanding our absolute commitment to regional air travel and notwithstanding the fact and given in fact that the studies have recommended a different module and restructuring for LIAT and given the inability of the government of Barbados to do for LIAT in the next five to 10 years what the government of Barbados did for LIAT in the last five to 10 years when we moved significantly to assume major shareholder responsibilities, we have taken the determination, a decision as a cabinet that it is time for us to step back while at the same time allowing other governments to\u00a0continue with their proposals to restructure LIAT in the way which they have determined.\u201d<\/p>

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Last month, Antigua and Barbuda Prime Minister Gaston Browne said he had ieceived communication from his Barbados\u00a0 indicating that Bridgetown was willing to sell all but 10 per cent of its shares in the airline that serves 15 Caribbean destinations.<\/p>\n

Antigua and Barbuda currently holds 34 per cent of the shares and if it succeeds in convincing Bridgetown to part with its LIAT shares, would have 81 per cent of the airline.<\/p>

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The government in a statement last month had said that \u201can offer was made for Antigua and Barbuda to acquire the LIAT shares owned by Barbados, through a take-over of the liability of Barbados to the Caribbean Development Bank (CDB).\u201d<\/p>

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The Antigua and Barbuda government chief of staff, Lionel Max Hurst, said that \u201cthere are many jobs here in Antigua and Barbuda connected to LIAT and we intend to ensure that those jobs are not lost.<\/p>\n

\u201cMany of the route rights that LIAT now possesses would be utilized more fully if Antigua and Barbuda gets its way,\u2019 Hurst said.<\/p>\n

Motrley told Parliament that Barbados would not be turning its back on regional transportation or LIAT, adding it would maintain a \u201cminimum shareholding in LIAT should we reach an agreement with our sister governments for them to take over our shareholding with respect to the negotiations.<\/p>\n

\u201cWe will continue to provide a minimum revenue guarantee, I shouldn\u2019t say continue, we will provide a minimum revenue guarantee on any route that is uncommercial , unprofitable, recognising however that the majority of routes that Barbados is involved in, is in fact profitable with LIAT.<\/p>\n

\u201cAnd it is against this background Mer. Speaker, our commitment continues that such within the last few weeks the government of Barbados would have sent a further one billion dollars (One Barbados dollar=US$0.50 cents) to LIAT and would also have satisfied our commitment to the Caribbean Development Bank with respect to the re-fleeting of LIAT,\u201d she added.<\/p>\n

In May, St. Vincent and the Grenadines Prime Minister Dr. Ralph Gonsalves said that the shareholder governments had agreed to give further consideration to a proposal by Prime Minister Browne regarding the future direction of the airline.<\/p>\n

Gonsalves said he had hoped that the proposal from Antigua and Barbuda would be discussed by the shareholders \u201cbefore the end of May is out\u201d.<\/p>\n

Grenada recently became the latest shareholder in LIAT and Gonsalves confirmed that St. Kitts-Nevis had responded positively to the call for raising US$5.4 million to help the airline deal with its current financial problems.<\/p>\n

St. Lucia Prime Minister Allen Chastanet has said that Castries would not contribute any funds unless there\u2019s a significant change to the airline\u2019s structure.<\/p>\n

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The Barbados government Tuesday night formally announced plans to sell its shares in the cash strapped regional airline, LIAT, but insisted that it was committed to regional transportation and would continue to hold minimum shares in the Antigua-based carrier. Barbados along with Antigua and Barbuda, Dominica Grenada and St. Vincent and the Grenadines are the […]<\/p>\n","protected":false},"author":3,"featured_media":13604,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":["post-36186","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"yoast_head":"\nBarbados PM announces sale of LIAT shares - 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\/barbados-pm-announces-sale-of-liat-shares\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Barbados PM announces sale of LIAT shares\" \/>\n<meta property=\"og:description\" content=\"The Barbados government Tuesday night formally announced plans to sell its shares in the cash strapped regional airline, LIAT, but insisted that it was committed to regional transportation and would continue to hold minimum shares in the Antigua-based carrier. 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