Barbados will not be negotiating LIAT’s future direction in the public domain, Prime Minister Mia Mottley has reiterated, in response to reports out of Antigua and Barbuda that her Government has agreed to sell its shares to St John’s.
Speaking on his radio station on Saturday, Antigua and Barbuda’s Prime Minister Gaston Browne said Mottley has said yes to selling “a significant portion” of Barbados’ shares in LIAT to his government.
Earlier this month, the Browne administration issued a statement from a Cabinet meeting which said, “Prime Minister Gaston Browne indicated to the Cabinet members that he has written to Prime Minister Mia Mottley on the LIAT restructuring plan.
“An offer was made for Antigua and Barbuda to acquire the LIAT shares owned by Barbados, through a take-over of the liability of Barbados to the Caribbean Development Bank (CDB)”.
This afternoon, Prime Minister Mottley’s Press Secretary Roy Morris confirmed that Barbados had received the letter but made it clear that Mottley would not be drawn into making public comments on the matter.
“PM Mottley’s position is that Antigua has made an offer to Barbados regarding its shares in LIAT, and Barbados has responded by inviting [Prime Minister Gaston Browne] to send a team to Barbados to talk,” Morris told Barbados TODAY.
“In the meanwhile, Barbados will not prejudice those talks by making any further statement on the matter, ” he added.
Antigua Newsroom, an online news outlet, reported that Browne did not give an exact number of shares Barbados intended to sell, but said Mottley indicated that Bridgetown wanted to retain “at least ten per cent of its shares”.
“The intent is not to exclude any country from participating in LIAT. In fact, as far as practicable we would want to broaden the shareholding in LIAT,” prime minister Browne said.
He added that he was “quite happy that they [Barbados] will maintain a shareholding position”.
Browne further disclosed that a negotiating team has been established, including MPs Lennox Weston and Sir Robin Yearwood as well as a representative from the Ministry of Finance. He said the decision was in the best interest of the Antigua and Barbuda economy.
Last Wednesday, at the annual luncheon of the Barbados Employers’ Confederation (BEC), Prime Minister Mottley said she was primarily focused on ensuring reliable and affordable regional transport, as she confirmed receiving Antigua and Barbuda’s expression of interest in purchasing her country’s shares in LIAT.
“Let’s just say we agree on the mission, and the mission is that there must always be reliable affordable access for travel in the region as there must be nationally. And I can assure you and the country that we are working on this every day.
“But you also have to take the reality of an existence as you find it and then determine whether the modality that you have is the best mechanism by which to deliver on that objective,” she said.
This is a joke..
This is a April fools joke!!
Lookout for another bad political decision by this BLP Administration. Feedback balloons to test the public’s opinion, have been released. The Antigua Prime Minister, Gaston Browne appears to be confident that Barbados will sell the majority of its shares in LIAT. Mia – like the woman she is- is playing hard to get, that’s the impression she wants to give us. She took acting lessons from her dad, the cry baby with no visible tears.
If you going to sell sell all the shares not some. A minority shareholder in Liat will give us no say in the airline or in future negotiations. As an investment it also will give us no financial return as it has never made a profit.
Prime Minister Mia Mottley of Barbados has said yes to selling “a significant portion” of Barbados’ shares in Liat to the government of Antigua and Barbuda.
Prime Minister Gaston Browne made the disclosure on his radio programme over the weekend, indicating to listeners that Mottley recently responded to an offer to sell the shares.
Barbados is the largest shareholder government in LIAT.
Orlando, I agree with you, I say She should come to the People of Barbados first and let us decide, Hope we don’t live to regret if she sells, The first he will do is move the hub to Antigua , Madam Prime Minister don’t even one share, Antigua is seeing something, are we blind? Remember RPB song in 2007,Bajans can’t see.
more advice from $54 million White Oak ? first it was default on loans then stop Beaches now surrender Liat control to a shady government one boneheaded decision after the other? asking for a friend
Should come and ask the people first MIA
This should have been a people decision not a prime minister’s are i should say her consultants decision
If Mia sells the Barbados shares in Liat, it will be a good decision.
Liat has been an Albatross around the the necks of the taxpayers of Barbados for far too long.
It is time that Barbados drops Liat. A waste of tax payers money.
IMHO these poppets are turning politics and LIAT into a degrading pappy show.
WHEN did we, the taxpayers, become their pawns to do as we are told and just hand over our money for them to spend as they like??
I call them what they are – ELECTED DICTATORS. LIAT – using OUR money – has not made its annual accounts public for well over 40 years, and I swear if you go and ask for even ONE year of the said accounts you will be told they are none of your business.
Within the last two weeks the shareholder parasites of LIAT have at the same time tugged publicly in three opposite directions AND refused to commit to any particular direction. Each has their own agenda, and trusts that calling the names OECS and CARICOM in vain will make the others go along with their own particular desire.
In the same period Marxist Comrade “Fat Boy” Ralph has BOTH declared the OPPOSITE declarations that LIAT is about to be closed AND that LIAT is not closing, NOT going anywhere.
Between them they are emanating the same chaos that LIAT’s shareholders, Board and CEO have emanated for some time now – and that is why LIAT is in such bad shape.
WHAT does LIAT really need now to turn around and survive?
1. Enough with Fat Boy Rat Brain going around with a money bucket begging and threatening for “donations”, when he and his victims both know damned well that he will be back on their doorsteps every six months begging and threatening again for more money.
2. EXTRACT all of the parasite politicians and political appointees from LIAT. That includes at Boy, the entire Board, and the current CEO/book keeper.
3. INSTALL people with some aviation experience to the Board, and qualified, experienced airline professionals to executive management. Especially replace the Chairman’s “good friend” with a globally experienced CEO who is known in the industry as a “turn-around expert”, and step the hell out of the way.
4. EXPECT there to be changes – especially a number of (temporary) layoffs – hold Board and executives to accountability, and if they cannot turn loss into break even within a reasonable period then terminate the whole lot and start again.
ACCOUNTABLE means ACCOUNTABLE.
5. EXPECT that WHEN profitability is encountered that renovation and expansion will happen, and those who were laid off will eventually ALL be re-hired.
6. Put measures in place to keep those unqualified, greedy, incompetent, ignorant parasites of politicians AWAY FROM the decision-making.
7. Finally, make sure that throughout CARICOM there is legislated that there be a LIMIT of all airport and passenger taxes and fees as a whole. This annually adding to the basket of revenue robbed from air travel and annually adding to the complaints by the same unqualified, greedy, incompetent, ignorant parasites of politicians that less people are travelling transfers the apparent SHEER STUPIDITY from our “leaders” to us because we won’t actually DO anything about it – and we deserve it.
The problem with LIAT is the POLITICIANS. We – the taxpayers who PAY THEIR SALARIES – need to clearly re-establish out control over what are apparently our most vulnerable citizens, and remind them who is really the boss (no, it’s NOT them. They are our elected representatives, NOT our elected 4-year dictators.)
I go hope this is not another Republic Bank like deal. We keep handing out assets to others.
Where is Liat hub located ?
From having the majority of shares and to be only keeping 10% means you will have to selling at least 20% without even asking the taxpayers and some sorry ass story about there will bo no reasons given because of some “prejudice”. So you selling the taxpayers share and no explanation. The article said it was in the other two countries best intrest…not Barbados’s. I am assuming its a pretty penny…The people are at least deserves to know the true value… what profit was made (if any) and what the funds will be used for… unless
the shares are biscuits.
offer was made for Antigua and Barbuda to acquire the LIAT shares owned by Barbados, through a take-over of the liability of Barbados to the Caribbean Development Bank (CDB)”.
Please read and understand the above and stop making this a political issue.
Bye bye list. Good tidings.
Wish I could say ‘will mis you ‘.
I would be happy if some other island that really needs list can take on the financial burden.
Don’t know which Bajans would want to hold on to and airline that just sucks money out of our pockets, but they can still put their home up for sale America move to Antigua where they can invest in list as majority share holders
Its really amazing how much a person can change in less than year. This is the same woman who was giving plenty press conferences when she got into office talking about transparency and keeping the people informed but all of sudden now she won’t be discussing matters of state in the public domain. I hope Barbadians are paying attention to this two faced snake! She can’t be trusted as far as you can throw her!!!!
@John
If Barbados sells all of its shares in LIAT, then it becomes just like St. Lucia that has never been a shareholder. St Lucia could care less about having decision-making power in the airline once it gets inbound and outbound flights on a frequent basis.
Grenada recently came onboard as a shareholder and also put an immediate $1 million injection of cash to keep the airline in the air. St Kitts & Nevis also pumped the same amount into the cash-strapped carrier.
Just remember how we Bajans complained bitterly over the years about those other islands not investing a penny in LIAT but want all the benefits of the airline. LIAT used to fly around 1.2 million passengers per year, but is only now carrying between approximately 720,000 and 730,000 passengers. So we see the direction the air carrier is heading and the impact on its revenues.
To offload the vast majority of LIAT shares to Antigua & Barbuda at this time could be a blessing for Barbados. As you said, the airline has never made a profit and is costing Barbados too much to support. Being a minority shareholder shows Barbados continuing commitment to the regional airline more so than giving us “say in the airline or in future negotiations”. Do we need to be a shareholder in American Airlines, JetBlue or British Airways to get service?
Remember the new funding model of the “minimum revenue guarantee” that forces all countries benefiting from LIAT to contribute. Under this model, it means that should a flight from Grenada to another island fails to have full capacity, St George’s would contribute a minimum guaranteed amount for the empty seats to ensure the flights remain. This could contribute some $16 million to the airline. Barbados stands to benefit more from this arrangement than any other island, given the high amount of passenger traffic into the island.
Barbados’ future involvement LIAT has to be more than “national pride” but a strategic business decision. It is unfortunate that PM Gaston Browne is prejudicing the upcoming negotiations on the sale of LIAT’s shares by making premature comments in the media.
Browne said “an offer was made for Antigua and Barbuda to acquire the LIAT shares owned by Barbados, through a take-over of the liability of Barbados to the Caribbean Development Bank (CDB)”. His reasons for wanting LIAT’s shares is strategic for him.
In 2013 the CDB provided a US$65 million loan to the four shareholder governments of LIAT. The loan was to assist with purchase of aircraft in the context of a fleet modernization project. LIAT said that the loan agreements “provide for the loans to be on lent-to and repaid by LIAT over a 13 year period following a grace period of two years”. It said co-financing for the project is being provided by shareholder equity contributions and from the sale of LIAT’s existing aircraft. Being the largest shareholder equity, Barbados obviously had to repay the most of that loan while non-shareholder countries got off scot-free.
Any offer to free oneself from liabilities cannot be ignored. This LIAT share purchase offer is akin to if an investor were to offer the Barbados government to takeover the indebted and loss-making Transport Board and CBC with all their liabilities. Would you say “no”?
It is a done deal. Barbados will be selling off the majority of its shares in LIAT. Read between the many lines in Carl(Liz Thompson)Harper’s essay. Liz is Barbados’s Permanent Representative to the United Nations, ripping off tax payers, as a highly paid blogger. Other bloggers like you and me, who are not politicians, don’t even get near the fatted calf, or even the fat cow.
Thanks Carl Harper,NOW Harry turnover knows the TRUE position with LIAT.
JOHNNY CROW and you should read under the lines and you will see that BARBADOS was NOT GAINING from being the majority shareholder ,that we were LOSING MORE and would have lost EVEN MORE from that CDB loan.
JOHNSON CROW… use the little COMMON SENSE in your CROW brain and read what your fellow yard fowl one Carson C Cadogan had to say on the matter.
The only person Barbados needs to be selling LIAT Shares too is Sir Richard Branson… Governments never need to be in the travel business
…..and JOHNSON CROW ,C C C has a higher status as a paling cock than you and can, therefore, see more than you since he is on the PALING and you are DOWN in the YARD.
I don’t know why government should put money in liat and there ticket does be so high that can’t be fear seems like all the hobby class ride for free and poor people paying the price for them
I feel they keep a minority stake in liat.
If the funds going into LIAT is the tax payers money ,then why they cannot be up to date with the decision(s) that are being made.
Why all the secrecy here in BIM when Antigua got their side all over the news.
Is there really a need for a party to visit BIM when there is a room and a speaker phone.
For the way BARBADOS is treated in CARICOM , I don’t think we will enjoy the “luxury” of LIAT like St. Lucia if we do sell ALL of our shares.
@Robin Hope. I agree. LIAT is too important a decision for any Cabinet to make on its own. Give the people a say in this.
Jamel Layne That’s the Aunty of the young viper’s
@Carl Harper this is about the second time you made a contribution of good sense. MAM you were elected to manage the country and not a company it is well appreciated that you have made the adjustment to your style and not have the influence of the public determine the outcome of negotiations as you were doing with Sandals. When it is time for us to be informed I trust that you will oblige us.
Be careful what you ask for, you may just get it. If and when Barbados sell its shares in this airline ALL THE LIAT BARBADIAN JOBS GONE.
If this GUY is will to give his “eye-teet” for our shares, I wonder what “diabolical” he planning for us.
Who says so TENNYSON DRAKES? we,however,know that YOU and your fellow clique would want to wish that on your fellow BARBADIANS just because they SENT ALLYA PACKING LAST YEAR…..TRAITOR.
I’m with BIMJIM and Robin Hope on this.
Do airlines make profits? Can LIAT make a profit or is it impossible? I think there are a lot of questions which at this time there are no answers. The problem is that the discussion appears to be going down a road where decisions will be made and we will never know.
@Harry Turnover
When Chris Sinckler and the crooked DLP wanted to “giveaway” the Hilton Hotel and BNTCL at below market prices to line their pockets, did the dishonest Dems consult you as a citizen of Barbados on the impending sales?
Carl i support the total sale of all of the shares for a few reasons. First we prop LIAT up to the tune of 49 cents out of every dollar it needs, yet it’s hub is in Antigua when all the studies done show Barbados would be a better location for it if if was being viewed as a business. We can’t even say we benefit from crew layover in any real terms either. So as an investment can we agree we get nothing for the millions we have invested? The answer is yes. So if we rule out LIAT as an investment why are we keeping the shares for sentiment? We will lose nothing but debt burden if we offload it. So immediately we will not only be better off by what ever we subsidise it by yearly, but we will be removed from the loan liabilities hence reducing our foreign debt burden.
Carl there is no downside to offloading a losing investment. LIAT will continue to service Barbados as we are a heavily trafficked route so our travellers will not suffer, as I see it the sooner the better.
Now you asked if u would do the same for the transport board and the answer is know because the situation is totally different. We are the sole owner of our transport board so we can dictate policy and restructuring without having other shareholders to try to work against us by pulling the ball into their court. LIAT will never make money as long as it’s used as a political tool as has been the case for the last 20 years or more. Finally yes I support St Lucia’ s decision for not putting a dollar in it too. As the PM there said ” he would not be investing in it until it’s system of management changed and it was run as a business.”
Carl forget to mention this on to you. Remember when the British Government sold BA to the company AIG how the Brits cried blue murder? Have the Brits suffered as a result, No. Not only has the company expanded above all imagination but it is quite profitable too and hence pays taxes to the said British government. You remember when Butch Stewart said the fastest way for a billionaire to become a millionaire is to own an airline? LOL
I take the sales of LIAT shares to Antigua with a grain of salt. I do believe that St. Vincent PM & Antigua PM think them 2 run the Caribbean and St. Lucia PM think he answers to no one but the USA.
John, I do not think you and I are miles apart on the LIAT shares sale deal.
I think Barbados will continue to honor its commitment to the regional air carrier because it is important for regional governments to finance it to keep it flying. No other major investors will pump money into LIAT in its current financial shape.
Has anyone else made an offer to purchase the airline? There has been rumors that Sir Richard Branson is interested but until he says so, it’s just a rumor.
Until someone actually buys LIAT, the regional governments will have to fund it because of its importance to regional travel.
What do you think will happen if all shareholder governments were to sell their shares? To whom, I don’t know.
We can’t be borrowing from the C D B to prop up our foreign exchange, and be saddled with the LIAT liability at the same time.
This decision is a no brainer. I however have a problem with the PM claiming not to be addressing the issue in public. It’s public relations when it suits the PM, at least Roy is doing his job.
LIAT employ 600 people, how many of those are held by BAJANS.
How many will be GONE after we sell our shares.