Prime Minister Gaston Browne has suggested that Antigua and Barbuda may ultimately become the majority owner in the LIAT 2020 airline partnership, citing a need to reassess the initial valuation.
Browne expressed concern over the valuation method that currently grants Air Peace Caribbean a 70 percent ownership stake, with Antigua and Barbuda holding only 30 percent.
According to Browne, the valuation overestimated the worth of the two aircraft provided by Air Peace, which he valued at approximately $5 million each.
“What they did was calculate cash flows for ten years down the road, effectively inflating each plane’s worth well beyond its actual value,” he said. “I told them, ‘What kind of madness is that? Value the assets at market price—if it’s $5 million, then it’s $5 million.’”
Browne further noted that Antigua and Barbuda had contributed significant assets, including the old Goddard building at the airport, which the government allocated to LIAT for operational use.
He stated that this property alone likely holds a higher market value than the planes currently invested by Air Peace. “We’ve provided a building for LIAT that alone likely holds more value than the two planes Air Peace has put in so far,” he added.
The Prime Minister also voiced his concerns over the leasehold values in the new LIAT entity, stressing that the airline should be grounded in tangible assets to safeguard its workforce in case of economic downturns.
“So if LIAT 2020 doesn’t own assets, what happens if things go bad? What happens to the staff and the airline’s future? We can’t leave them with nothing,” he insisted.
In response to concerns raised by the technical committee, Browne addressed the risk associated with contributing land on a freehold basis, saying, “They told me that by putting land on a freehold basis, we may lose it. I said, ‘Are you going to protect the government and expose the staff?’”
He called for a comprehensive reassessment to ensure that all assets are valued fairly, with confidence that this would place Antigua and Barbuda in a stronger ownership position.
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🤣😂😄😂🤣😂😄please tell me this is a joke. DUPED AGAIN BY THE SAME ENTITY? I 😄😂🤣😂😄😂
When will they learn?
Well, Mr PMinsiter Browne if that is the case, do what you have to do. I like fairness and equality. Some only come to get and take. Keep up the good work sir.
The SCAMPS got SCAMMED by more advanced SCAMMERS. The PM should give Daven Joseph and Chet Greene the same ultimatum he gave to Crump at Public Works. You have 60 days to fix this or you’re out.
Air Peace is holding the handle and the People are holding the blade. Air Peace ain’t obligated to do nothing more or less other than what they’re contracted to do.
This whole Liat20 farce is going to collapse eventually. Those 2 Nigerian planes are not even owned by Liat. They can be pulled at any time.
My question is….. can the Antiguan Prime Minister read and comprehend??
I have Never heard of a leader being duped over and over again by the same entity. Ablp is a disaster.
Well said Lady Bee. I thought these guys were the brightest and most competent in all things according to the PM. The cart is always pulling the horse in this administration. People really can be fooled in Antigua easily . As Weston said ” money burning out of our Treasury aimlessly “. Lol NAMCO. This is the same PM that boast about record taxes been collected and how the economy is so great , the people can’t get regular water,proper roads ,reliable internet and high inflation killing us. What a country!
There are several methods for valuing assets, including:
• Market approach: Values an asset based on the prices of similar assets that have been sold.
• Cost approach: Values an asset based on its replacement cost.
• Income approach: Values an asset based on its future cash flows. This method is often used for valuing operating companies.
• Discounted cash flow (DCF): Calculates the current and future cash flows of a business, then discounts them back to the present using a discount rate. DCF is a common method for valuing stocks.
• Asset-based approach: Values a business based on the fair market value of its assets. This method is often used to value asset-rich businesses, such as property management or hire businesses.
• Net asset value: A valuation technique that determines a company’s equity value by developing a market value balance sheet.
• Book value: A simple way to evaluate a company, calculated by subtracting the total liabilities from the total value of the company’s assets.
Income Approach
The income approach uses the future cash flows or earnings of an asset to determine its value. The income approach assumes that the value of an asset is equal to the present value of its future benefits. The income approach can be applied to assets that generate income or have growth potential, such as businesses, patents, or contracts. The income approach can use different methods, such as the discounted cash flow method, the residual income method, or the capitalization of earnings method.
I do not think the PM would win this argument. Air Peace is quite in it’s right to use the Income approach to valuate the value of their input into the Company. Building have in that approach no bigger earning capacity than the planes. Therefore they will go with the discounted cashflow method.
I hope that the political hacks here will be educated and learn what the PM is saying. Perhaps the negotiating team did not have the right financial wizard in place to argue his point before the mortar had dried.
By the way when are the ATRs from LIAT coming in the mix.
How does the Finance Minister (PM) of a country get duped? Something doesn’t seem like it is. I think real experts need to handle our deals, not inexperienced hungry politicians who are excited for any low hanging fruit.
@Less We Forget…. it’s known that some lakes span a wide, deep and long range. Some are even considered to be haunted and the favorite visiting site for species from other dimensions; but, in this situation regarding the valuation methods used by the negotiators; therefore, enough of the Google searches and cut & paste , to explain away, the incompetence of the Government negotiators, to include the finance minister PM Gaston Browne because the buck stops at his desk. Negotiations of this nature with far reaching and long, long term ramifications have to be done with the #bare_knuckles, #fist_2_cuffs MINDSET.
There should be an INDEPENDENT FORENSIC AUDIT, of both Antigua Airways and LIAT 2020, since, apparently both deals were negotiated or led by the same team.
Who negotiated this deal with Air Peace without the PM’s involvement? Please come forward now that the PM is having a coming to Jesus moment about it. Ridiculous!!!
@Curious George —> Chet Greene. The man who can’t get a clinic running thought he could start an airline and we let him.
What about the 100% SEVERANCE due to the LIAT (1974) LTD workers by the 4 SHAREHOLDING GOVERNMENTS? I notice ST VINCENT and DOMINICA very quiet.It is clear BARBADOS, ST VINCENT AND DOMINICA have no INTENTION of CONTRIBUTING to the SEVERANCE BILL.
The GOVERNMENT OF BARBADOS made its position CLEAR that there is no OBLIGATION,LEGAL OR OTHERWISE, FOR A MAJOR SHAREHOLDER WITH 51% EQUITY TO BE LIABLE FOR ANY SEVERANCE PAYMENT to the OECS WORKERS.ONLY BAJAN NATIONALS ARE ENTITLED TO 100% SEVERANCE.BAJANS FIRST ,HOME DRUMS BEAT FIRST.DISCRIMINATION. THE GOVERNMENTS OF ANTIGUA, DOMINICA AND ST VINCENT ARE COLLABORATING WITH SUCH ABUSE AND DISCRIMINATION TO ITS CITIZENS.BARBADOS HAVE DONE IT TO THE CLICO/ BAICO POLICYHOLDERS IN THE OECS. BAJANS FIRST POLICY.
It is very STRANGE GASTON BROWN is not going after the 3 SHAREHOLDING GOVERNMENTS DOMINICA, ST VINCENT AND BARBADOS TO CONTRIBUTE TO THE LIAT (1974) LTD SEVERANCE BILL like how he is CASTIGATING SANDALS HOTEL of “EXPLOITATIVE PRACTICES THAT MIRROR COLONIAL ATTITUDES”towards the WORKERS.
Shit show in Antigua, LIAT is now down to 1 ATR, and they need an MRO to maintain it, IF they don’t LIAT 2020 cannot fly! At the same time the 2 Nigerian ERJ-145 jets are getting close to their 6 month stay, and will have to go back to Nigeria, NO MRO, NO ATR operation = CLOSURE of LIAT 2020! in the next 2-3 months. Shit show.
Poor leadership, poor planning from the top. Your leader has failed you, sorry DON’T SHOOT THE MESSENGER, BUT YOU NEED TO KNOW ALL!
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