ST JOHN’S — LIAT chairman Dr Ralph Gonsalves has disclosed that the under-insurance of “non aviation components” caused the airline to incur an additional EC $10 million in damage – bringing the price tag for June’s hangar blaze to a staggering EC $60 million.
“LIAT, itself, would suffer a loss of about EC $10 million dollars, because that would have been as a result of the under-insurance of the non-aviation components of the fire,” the airline chairman and Prime Minister of St Vincent & the Grenadines, said at a majority shareholders’ meeting.
Gonsalves added that the regional carrier had insurance for some of the damage, including the DASH-8 aircraft, but did not have “full coverage.”
The uninsured items that were damaged apparently include “buildings,” but further specific details were not given.
LIAT board chairman, Dr Jean Holder, said that the fire – which was ruled as accidental – exposed an error in judgment on behalf of the company, saying, “We under-insured, that is the honest truth with the buildings… Obviously you learn lessons from these things.”
However, the major stakeholders – Antigua & Barbuda, Barbados, and St Vincent & the Grenadines – will bear the brunt of the airline’s insurance blunder, according to the board chairman, who said: “That is a cost which we would have to share with our majority shareholders.”
Gonsalves, who said the shareholders would have to “put up some money”, echoed Holder’s sentiment. (Antigua Observer)