Efforts to ignite a new, more efficient incarnation of regional carrier LIAT are gathering pace following the signing of a memorandum of understanding between government and a private company.
The deal was signed with Chinese firm CFA Global, which will be a minority shareholder.
According to the agreement, the new airline LIAT 2020 will deploy a fleet of small, medium, and large aircraft, including Airbus A330, Airbus A320, and ATRs, in passenger service to the Caribbean and South America, along with international travel routes from Europe.
Minister of Works Lennox Weston signed on behalf of the government while Ma Chao represented CFA Global.
This development comes on the heels of attempts by the Antigua and Barbuda Workers’ Union to secure dialogue with LIAT’s receiver Cleveland Seaforth to discuss outstanding severance pay for former employees.
Some months ago, LIAT’s shareholder governments – Antigua and Barbuda, Barbados, Dominica, and St Vincent and the Grenadines – agreed to restructure the airline and return it to commercial service.
LIAT 1974 Ltd has been in administration since July 2020 and has been operating a reduced schedule with a limited workforce since November that year. It is now set for liquidation.
Its former workers are said to be owed around EC$120 million in severance and other payments and it appears unlikely that they will be paid in full.
Some shareholder governments have offered financial and social assistance to employees based in their respective countries.
Last December, the government of Antigua and Barbuda disbursed EC$2 million as a “compassionate payment” to local former employees. However, EC$1.6 million of that remains unclaimed.
