Prime Minister Gaston Browne says regional shareholder governments in the now defunct LIAT (1975) Limited have agreed to sell at least three aircraft to the newly formed LIAT 2020 paving the way for the launch of the inter-regional airline.
Browne described the move as “significant” saying it would facilitate a smooth transition into the new airline that is being formed in partnership with Air Peace, a private Nigerian airline founded in 2013.
He said that the new airline could launch its operations within 60 to 90 days.
“Within the last couple of days we have had the approvals from all of the heads of shareholding governments to sell their planes or aircraft to Antigua and Barbuda and I think now the administrator (Cleveland Seaforth) is seeking to have a court hearing to have the deal ratified by the courts.
“The Caribbean Development Bank they have concurred as well. So we are now a little closer towards the acquisition those aircraft,” he said, adding “we would be paying a total US$12.1 million to acquire the aircraft and we will have to spend I believe at least another eight million US dollars to get them fully operational”.
Late last year, Browne said that his administration had already indicated that it is prepared to invest between US$15 to 20 million in the new venture.
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He said then that when the other shareholder governments of LIAT (1974) Ltd – Barbados and St Vincent and the Grenadines – had decided to collapse the airline in the wake of the challenges it faced during the COVID-19 pandemic, Antigua and Barbuda decided against the move.
Meanwhile, Prime Minister Browne has insisted that his administration would not be negotiating 100 per cent funding of severance payment to former LIAT workers.
“We are not talking to them if they are going to push for 100 per cent. There is no way that we can accept a 100 per cent gratuitous payment. This is not a legal payment of a severance, this is a gratuity payment, an exgratia payment, a compassion payment, whatever you want to call it.
“We are now down to 32 per cent. If the union wishes to engage us to discuss the settling of the 32 per cent compassionate payment, we will do so,” Browne said, adding “I have also indicated in the past that this offer will not remain indefinitely”.
The government had originally offered a 50 per cent compassion payment in cash and bonds to the former employees that Browne said amounts to EC$110 million (One EC dollar=US$0.37 cents).
The Antigua and Barbuda Workers Union (ABWU) has said in the past that it would continue to seek the 100 per cent severance payment to the former airline employees.
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A word to the wise…. Do not play warri with our Prime minister…….
No doubt the former LIAT workers are been fooled by AWU..
From 50% to 32% then it might end up at 0% offered by this compassionate ABLP Gov’t .
Remember ” want all may end up getting none tall “
Is he going to rename the defence force plane LIAT?? Must be! Because the old and useless planes they bought will never leave the ground
The LIAT(1974) severance issue will most probably reach the UK Privy Council if not settled amicably before that stage.
The big legal issue is whether Governments can be allowed to escape liability by hiding behind
Limited liability entities. That is something beyond LIAT(1974) Ltd alone.
@Commentstor
A who they go sue? The workers were not employed by the Antiguan government. Be real, liat was a corporation.
And when will PASSENGERS be refunded the money they spent on tickets years ago and end of last year?
@Stay Alert!
The LIAT (1974) Receiver should publish a notice for anyone with a claim to submit the details . This was done around June/July 2020 and then the Companies Act amendments allowing an administrator to run things was done.
I actually submitted a claim when the notice was published by email on behalf of my business and received an official acknowledgement. But nothing further up to now.
At least you heard something I did everything I were told to do and never heard back from liat yet since 2020 if they want to stiff the workers in Antigua what say about ticket holders in other countries. But I wouldn’t be flying liat ever again even if I had gotten back my money.
@ Say Me .
LIAT(1974) is a Corporation owned solely by several Governments.
That is were there is a difference that will need to be examined.
If that is not the case what would stop Governments from setting up limited liability companies to do all manner of things and then saying at the point of any financial liability that the entity is bankrupt and end of the story ?.
It is interesting that we have not hear too much on the issue of LIAT (1974)’s liabilities from the two Share older Governments with Lawyers as leaders.
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