By Elesha George
The government of Antigua and Barbuda is set to proceed with operationalising LIAT 2020 without the commitment of other regional governments.
Despite calls for better air travel options within the Eastern Caribbean, no other Caribbean leader has pledged to fund the successor to LIAT (1974) which has been under administration since July 2020.
Cabinet spokesman, Melford Nicholas, expressed Antigua and Barbuda’s willingness to collaborate, stating, “We’ve given them an opportunity to participate if they so desire.”
Still, he pointed out that these governments have been reluctant to offer subsidies for LIAT’s operations, yet they have not hesitated to allocate substantial sums of money to larger entities in exchange for securing air routes.
“There has to be some kind of subsidy, and governments within the OECS and in Caricom have been begrudging in respect to providing LIAT with that subsidy and that has been the core part of the problem. Wherein each and every instance outside of that, these same governments have been prepared to pay huge sums of money to North American carriers to give them guaranteed minimum revenue guarantees on particular routes,” he explained.
However, despite the absence of regional support, negotiations, according to Nicholas, are advancing and are anticipated to conclude by the end of this month.
Nicholas also disclosed that the government has secured a “viable investor” and has identified at least one partner in the Nigerian carrier Air Peace whose principal will become a significant shareholder.
“The government of Antigua and Barbuda is committed to fulfilling its promise of resuscitating LIAT through LIAT 2020.
“We have a viable investor and we are a matter of weeks away from inking the shareholders and the joint venture agreement and we think that the operationalisation of LIAT 2020 will come into swift effect after that,” he shared.
“The government of Antigua and Barbuda from 2020 has been able to land an investor who is prepared to put cash and further assets into a revised and revamped LIAT 2020,” added Nicholas.
The partnership between LIAT 2020 and Air Peace is tipped to bring significant improvements to air travel in the Eastern Caribbean.
This collaboration will involve the introduction of a new fleet of aircraft, which will enhance the frequency of flights, expand routes, and offer new destinations in the region.
They will also wet lease an additional line of aircraft. LIAT 2020 is set to have a total of six planes and is working to secure an Air Operating Certificate (AOC) during the month of September.
“We expect that within that same timeline as well that we will perfect all of the actions necessary to ensure that the LIAT 2020 can be accorded its AOC licence to operate within the region,” Minister Nicholas said.
Antigua and Barbuda had hoped to receive the backing of its former allies, Dominica, Barbados, and St Vincent and the Grenadines in its revamping efforts. However, instead of backing Antigua and Barbuda’s plan, regional leaders like St Vincent’s Prime Minister Dr Ralph Gonsalves are now considering the establishment of a completely new airline.
According to Nicholas, Gonsalves’ intentions to start a new airline suggest that he has “other ambitions” within the Organization of Eastern Caribbean States (OECS).
“I think it’s borne out now where the ambitions of the government of St Vincent headed by Mr Ralph Gonsalves, where he stood along,” Nicholas remarked.
Nicholas speculated that Gonsalves aims to enhance traffic at the Argyle International Airport by creating a new airline that would cater to the Windward Islands and establish a sub-regional hub in St Vincent.
“There is not a lot of traffic going to Argyle so, clearly, the ambition of Mr Gonsalves is to improve the economic viability of the Argyle International Airport in St Vincent and that is really what drives him,” he said.
The minister said Antigua and Barbuda’s government is unfazed by the prospect of St Vincent becoming a sub-regional hub for a yet-to-be-established airline.
Nicholas stated, “If or when that other postulation that Mr Gonsalves speaks to becomes a reality, we will take it at that particular point but we do not see that as an immediate reality.”
LIAT 2020, he said, is more than a year ahead in its planning to replace LIAT (1974) and is likely to outperform the competitors.
“The company has been duly registered for more than a year now and, in the meantime, we have been able to keep hope alive with respect to LIAT. There are some, I believe more than 167 employees, have been reemployed in the reduced operation of LIAT and LIAT has been able to provide a number of services across the region,” he said.
Nicholas added that the government will not be distracted by attempts to establish new entities to fly within the Eastern Caribbean.
