Antigua Pledges To Invest US$ 20 Million In New LIAT

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LIAT

(CABINET NOTES)

The Cabinet held a fulsome discussion on the future of LIAT 1974 Ltd. Antigua and Barbuda is developing a plan for a new LIAT, which includes an invitation to private entities to invest in that new carrier.

In keeping with the requirements set out by the shareholder governments, that plan is to be developed in the shortest possible time and to be ready in a few days.

The Antigua and Barbuda Government is committed to investing an amount of US$15,000,000 to US$20,000,000 towards the new LIAT. The conditions of the loan secured prior to the Covid-19 crisis requires that the borrowed resources be invested in LIAT. A decision was taken to have the Registrar of Companies in Antigua and Barbuda, acting under the Companies Act, to reserve the LIAT 2020 Ltd. new company name. Antigua and Barbuda stands opposed to the liquidation of LIAT 1974 Ltd. without a plan to create the necessary connectivity which regional integration requires. Staff members of LIAT, numbering 800+ throughout the region, and more than 500+ in Antigua are very worried about their future, the Cabinet agreed. The cost  and distribution of severance among the shareholders will be assessed, the Cabinet informed.

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13 COMMENTS

  1. Trouble in Arima. Remember that song by Lord Kitchener.Well trouble in the OECS and CARICOM WITH LIAT. Leaving Islands At Anytime.

  2. The PM should consider the idea of creating a airline-investment CIP option. I am sure some new citizen applicants wouldn’t mind investing in an airline, just like they have the option to invest in real estate. Would CIP applicants be willing to pay $100,000 to invest in a new airline (and get share ownership) and get Antigua citizenship in return? I think so.

    LIAT needs to be put into bankruptcy and everything just needs to be finished, the whole thing is a mess. Also, I would hope that the new airline has a different name, as ‘LIAT’ just sounds so dumb. Reminds me of the low-quality FIAT cars.

    • This is an excellent idea. Fund LIAT from CIP direct investment just as you suggest. Yes, also a good idea to change the name. Antigua can’t afford such a huge investment. Pay the workers first. Cover everything with new CIP monies. That will be an easy sell.

      • @CErmle:The only Investments coming out of CIP are selling of Antigua and Barbuda Passports.Thinking about funding the new LIAT from selling of Passports.The amounts of Passports you would have to sell would be overwhelming.

  3. Should the creation of any new airline not be done in conjunction with the other Caricom countries? I hope Gaston is not launching ahead by himself trying to force his plan on the other Caricom countries as that will not end well. PM Chastanet of St. Lucia made it clear on Observer Radio that they would only participate in a new airline if certain conditions were met. I am sure the same goes for the other Caricom countries. Nobody can afford to throw away money again. Let’s do this in a coordinated way please so that all Caricom countries are on board.

  4. This plan means nothing since all the relevant governments must decide on the future of LIAT. What it means therefore, is that if the governments agree to say good bye to LIAT, then Antigua will be having it’s own airline. The ad I have seen for the One Caribbean Limited airline shows that one carrier to replace LIAT is out of the blocks already, and if it has the blessings of Gonsalves and Motley then any resurrection of LIAT in whatever form is doom to failure. I wish Antigua well with its plan and big talk.

  5. Welcome uncle Calvin aka calvinair… lol … why u all think Gaston was so hard and fast in getting the majority shares in liat and all of a sudden it’s been liquidated. .hmmmm … because just like uncle Stanford he now has uncle Calvin with all his millions … Ga … one thing he probably didn’t expect was that motley was planning for his [email protected]$ longtime and now Barbados push out their airline. .. any which way the region require prices like what the airline is pushing $99 what can be wrong with that. .. well me just want to say big up to the liat Staff at the end of the day I do wish that everything will work out in ur all best interest … stay strong stay together and be safe…

  6. Thought I read a few months ago that Gaston said he had secured a $30million us loan to invest in LIAT. What happened to the other $10million?

  7. I understand the importance of LIAT, but hold on now!

    We talking about keeping an airline for regional travel, we’re planning on pumping all this money into the possible creation of a new airline, and yet man can’t get constant clear (non rust) water; be paid on time; have proper road to drive them car, have proper facilities for the hospital workers, the police force, the general civil service’ and have a city that is updated and beautiful? That’s only a few points

    What is the point of a man walking with gold on his fingers and neck in public, and when no one looks, his place where he rests his head is in the bushes, or in some old clap board house?

    No man Gaston, if it’s so, work a deal for some competent private entity to take over LIAT and its employees and then place all the blasted TAX MONEY to settle our internal affairs here.

    We have a country to build. Lets deal with our internal affairs. Lets make sure that our people are taken care of FIRST, then we can go and say we have the luxury of having a national carrier.

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