Source – THE NEW TODAY: Chairman of the LIAT Shareholders Government Group of Countries and Prime Minister of St. Vincent & the Grenadines, Dr Ralph Gonsalves has expressed fears that the closure of the regional island hopping carrier, LIAT is imminent as most of the countries which use the carrier services are not responding favourably to the airline’s request for US$5.4 million to ensure its survival.
Gonsalves made the statement as a guest on a popular current affairs programme in St. George’s run by the Grenada Broadcasting Network (GBN).
The Vincentian leader told the programme host that Grenada is the only government that acceded to LIAT’s request by pumping approximately $1 million into it.
“…Prime Minister Mitchell has put in approximately 1 million dollars EC towards emergency funding because he is interested in seeing LIAT remain in the sky”, he said.
According to Dr. Gonsalves, due to the lack of financial input from the other shareholding countries, LIAT’s closure is imminent.
He said that LIAT has a compliment of 10 aircraft – seven are leased and three are owned by the Barbados-based Caribbean Development Bank (CDB) due to monies borrowed and a decision will soon have to be made on the way forward.
“…We probably will have to ask the CDB to sell those three aircraft and operate seven of them and then get other smaller airline like One Caribbean to fly between here and St. Lucia, rather than get LIAT to fly on one of the routes which is going to Trinidad which is not economical to cut it”, he remarked.
“… The governments have not been responding so the shareholders are reaching a critical point now and if you ask me, what is likely to happen … there will be a transitional restructuring leading to a closure of LIAT,” he said.
Dr. Gonsalves pointed out that a new airline would then have to be the next option for the region if LIAT is closed.
However, he said that there will be consequences in terms of job losses.
Gonsalves said: “If you sell the three aircraft which are owned by the CDB, immediately that’s 33 pilots who would have to go. Then other workers will have to go, flight attendants etcetera, etcetera, because over 7 million US is required in some immediate savings, 2.53 million US required from the workers but you ain’t getting the number near to that.
“We wanted a 10% cut across the board, but we not getting that and the pilots have agreed to a 6% cut on the basic pay, that ain’t going to do anything much, and the question of the agreement…the legacy agreement, they don’t want to have new contracts.
“…So, what you probably will have to do is to start a new airline and you hire people on specific contract but I can’t guarantee that there would not be disruptions.
Dr. Gonsalves disclosed that the Leasers of seven of the LIAT planes in far away some places like the United Arab Emirates (UAE) are prepared to give cuts of between 17 and 20 percent and other stakeholders are prepared to do cuts in order to save the regional carrier.
“…I don’t think the employees fully grasp what is at hand”, he said.
Two years ago, Gonsalves said that CARICOM member states collaborated with the CDB to have a consultation on LIAT.
He said the problems facing the airline were diagnosed and three options were put forward as measures to be taken to resolve the issue.
According to Gonsalves, the first option was a proposed restructuring of the airline where “countries served by LIAT have to come into the mix and the workers themselves have to take a salary cut and the other stakeholders have to chip in.”
The second option, he indicated was to give the airline to the private sector completely, while the third option was to close it down and start afresh.
“If you even close it down and I fear that that is an option which is becoming more and more realistic, but if you close it, you have to manage in the transitional period and we need to have resources…”, he said.
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They don’t want to pay no problem. Effective May1st institute a head tax of $50Usd on all tickets sold originating from those islands not willing to contribute. Effective June 1st move the tax to $100usd. You will see how fast they find the money when their own people who use LIAT start to complain.left out the talk and hit the freeloaders where it hurt, in the pockets of the same people that vote them in.
This article sums it up. Ask the shareholders for a fraction that is truely needed then come with the real amount. This is true West Indian business methods at work.
Shut it down after Easter start a fresh, put everyone on contract stop elite salaries, Country that have to depend on it to get tourist to they Island don’t want to contribute to hell with them full stop.
The airfare is reasonable but the regional taxes on the tickets is what deters people from travelling. I went to Grenada last year on Liat. It was 185USD base fare round trip. However the Barbados taxes were USD114 and Grenada taxes were USD73.21. And this government raise the airport taxes even more after the mini-budget. I really hope it doesnt close, I like travelling the region. Maybe Bizzy can ressurrect RedJet.
not shocked, it took far too long
Go with who pays up. Forget about St.Lucia’s
PM, that man is a regional idiot. LIAT is worth saving. Never miss the water until the well runs dry. That Trinidad airline cannot do what LIAT does using the Jets. First thing the regional PMs need to do with haste, is institute one flat tax rate for LIAT, and not the various taxes each island charges at present. That would see better ticket prices and boost inter regional travel. But that would never happen, because the politicians are extremely smart. Yah do not get degrees in common sense at any university.
So it easier to close down the entire airline rather than start dropping the unprofitable routes.? Then this is Easter a peek season for liat, surely their cash flow will improve.
them might need a ferry service for island travel.
The regional governments should lower there taxes on the tickets.
This is not good news.
JOHNNY CROW: I agree with you 100%. Thanks.
Too much money has been injected ithis. Maybe if privately owned it would run like a business. Maybe if pilots and employees had shares they would make less demands.
And still no word about adjusting the exorbitant taxes so people would choose to fly more.
Late.at?
This article is misleading. I continue to wonder how your reporters just get the facts wrong and no editor or fellow reporter catches it before it is published. It is not the shareholders who refuse to put money in LIAT. The shareholders have been pumping money into LIAT now for years and they simply do not have enough to pump into the airline like before.
It is the Islands that are serviced by LIAT like Dominica and St Lucia that refuse to lend financial support to the airline and that is why I support John 100%
If these Islands do not want to support the airline that brings them thousands of tourists and facilitate their people to get from Island to Island, then raise the price of the tickets from those Islands and the people would cry out and those governments would have to act.
LIAT has to hit them where it hurts or else nothing will happen.
Close it
I have a question…do any of the regional Governments owe money to L.I.A.T. for flights taken by Government ministers and other officials over the course of many years?
It would be a damn shame to close it and cause many to lose their jobs! I don’t think the third option should even be considered; if anything the second option may be best as long as the new owners do not make existing staff redundant! Why, oh, why can’t regional governments make this thing work?! Are their economic circumstances at critical point??!
MIA MOTTELY pay out all them SET SET OF DELINQUENT HEADS OF CARIBBEAN COUNTRIES WHO GOT MONEY IN LIAT, and run it ya self, and up d thing by $50 or $100 bajan more per flight, just like the bus fare, if them want it them will use it or left it, or pull out of it and count ya losses, something that is so vital that connecting the caribbean countries, them fickers dont want to invest in but want a free ride, MIA you know why them want to give barbados so much trouble, its because we aint in the caribbean sea, BARBADOS alwys first to put it self in every thing, BAJANS THE PPL IN THE CARIBBEAN DONT LIKE WANNA, HOW LONG AND WHAT IT GINE TAKE FA WANNA TO OPEN UP WANNA EYES, MIA THIS MIGHT SOUND BAD TO SOME PPL BUT I WANT YOU TO PULL OUT, AND WHEN YOU PULL OUT UP D FARE, handle it ya self, if them use it fine if not cool,
How much did the Governments cut their Airport Taxes? Have they factored this into their losses in Revenue?
THIS FICKEN THING ONLY CARICOM AND SINGLE MARKET WHEN BARBADOS LETTING UP AND OPENIG IT DOORS TO THEM, AND DISPLACING BAJANS, OUR PRIME MINISTERS TOO FAST IN SIGNING ON THE DOTTED LINE, STARTING NOW MIA DONT GIVE ANOTHER FELLA CITIZENSHIP BOUT IN BARBADOS, OR I GINE COME BACK AND WALK DOWN BROAD STREET NAKED AS I BORN WITH A PLAQUE CARD IN MY HAND, IN THAT WAY I WILL BE SURE TO GET EVERY BODY ATTENTION, PULL OUT MIA, PULL AWAY FROM THEM
Good God again cut the blessed taxes you prefer to bankrupt the airline!!!!!!
This has to one of the biggest jokes in caribbean history!!!!
So basically don’t buy no ticket from liat cause if I buy n the. I can’t travel someone had better get my money. Smh
What’s wrong with closing LIAT? Many more powerful, luxurious, customer focused airlines have done so before.
In February it was US$60 to go to Trinidad. You can’t even take a Taxi to St. Lucy for that. Study that for a minute. A plane ride of 333Km is cheaper than the 34Km from my house to Animal Flower Cave. The rest are the exorbitant Taxes and Airport Fees charged by ALL the Governments
Every body wants LIAT to close but how do we then get from Island to Island? Very often passengers come into Barbados to connect to the Islands. What would be the solution to that? For years there has been talk of a Ferry service, in 2009 it was suppose to have started in October that year, that was 20 yrs ago. Up to now it can’t happen and I think it is because of LIAT. It’s ridiculous that I have to pay more to go to Trinidad than I have to go to Fort Lauderdale.
Close the airline you all say but are we going to sprout wings, what is the alternative?
……..that was 10 yrs ago…….
LIAT should operate like the PSVs and only fly routes which are profitable and dont leave until you got a full load.
And play music.
I said it before and will continue to say this…Antigua kick fuss when Barbados wanted to move the hub to G.A.I.A so then Antigua should bare the burden then of the costs…enough said.
Why is it so difficult for the governments in the region to lower their taxes and make interregional travelling more attractive plus governments in the region who does not contribute anything to liat Airlines that brings people into their countries with foreign currency it is mess up why can’t they come together and make sure that they saved this critical mode of transportation for not only people in Barbados and St Vincent but throughout the entire region
In 2000 I remember going to work on friday morning with a small carry on and passport. Look at a map in the caribbean take up a dart and where it land I gone cheap so.
St. Lucia’s Trump want airlifts but don’t want to support the airline financially. Simple, forget flying there and let St. Lucians travel to the islands by moses with oars.
Johnny Crow, I agree wholeheartedly with you.
LIAT always needed proper management.
First thing LIAT headquarters need to be back in BARBADOS. I putting-up most of the MONEY, I calling 98% of the shots.
Who ain’t with me, against me.
Ali May whaat!
I AGREE with ANTONIA COZIER, JUILIAN MARSHALL AND ALEX ALLEYNE, them other caribbean too blasted selfish , some of them them aint want to put a cent, and i agree, since barbados got the most money the hub should be here, bring it back, havent any body realize that when head quarters for anything is moved from barbados that it failed, even the with the west indies cricket as well, as i say those ppl dont like barbados, cause we were the BRITISH MODE, and had a higher favor for business,etc, its time to cut them loose,,
Its easier to get involved in our cricket and run it to the ground just like liat
Only a matter of time before T&T, takes over LIAT for a song like they did BNB, ICB and Mortgage Finance. T&T may not be a ATM machine, but they are bloody good Speculators.
@BELFAST, if TRINIDAD tske it over it would be a good thing cause it aint profiting barbados to be in this thing and having to be putting the most money when things go bad, so give it up , i would rather it so and let them pay me $2000 bajan dollars every time then land at GRANTLEY, TEN TRIPS A WEEK IS $20,000