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The Antigua and Barbuda Workers’ Union (ABWU) has urged the governments of the Caribbean Community (Caricom) to get involved in rescuing cash-strapped regional carrier LIAT (Antigua and Barbuda) (LI, Antigua).
ABWU General Secretary David Massiah has written to Antigua and Barbuda Prime Minister Gaston Browne, calling on governments to come together and devise a plan to aid the airline and support employees laid off in March 2020 after it suspended operations when the pandemic exacerbated its financial woes.
The governments of Antigua and Barbuda, Barbados, Dominica, and St. Vincent & the Grenadines – the four major shareholders of LIAT – in August 2022 resolved to liquidate the debt-ridden airline and transfer its assets to a newco, LIAT 2020 (Antigua). The existing airline has been in court-appointed administration in Antigua and Barbuda since July 2020.
It continues to operate three ATR42-600s and holds an Antiguan Air Operator’s Certificate (AOC) and EU Third Country Operator (TCO) authorisation for flights to French and Dutch territories in the Caribbean. It operates about 50 flights a week, 90% less than its 500 weekly services before the pandemic. The result has been a lack of access for air cargo and passengers to the detriment of tourism, trade, employment, business, and social relations.
Meanwhile, laid-off workers are still awaiting their pay-outs. In 2021, Antigua and Barbuda promised XCD2 million East Caribbean dollars (USD740,740) in severance pay to former employees in Antigua, French Caribbean News reported. In August 2022, Dominican Prime Minister Roosevelt Skerrit said he wanted a “humanitarian” solution to settle an ongoing pay dispute. In November, the St Lucia government promised that LIAT workers would “soon” receive XCS4.4 million (USD1.63 million) in outstanding termination benefits.
LIAT shareholding governments plan to enlist an aviation consultancy to advise on LIAT 2020’s business model to ensure its long-term financial viability. Following a request for assistance from the regional governments, on December 9, the Caribbean Development Bank (CDB) board approved a “technical assistance grant” (sum undisclosed) to address the lack of air access affecting the Eastern Caribbean, Caribbean News Global reported.
The CDB will finance consultants to develop urgent provisional measures to address the current lack of capacity and re-establish regular air transport services within the sub-region. Options for permanent solutions will be considered subsequently. The consultants will also define immediate actions required of East Caribbean governments to restore regular inter-island air services.
“The proposed technical assistance will provide member governments with feasible options for urgent improvement in airlift capacity and make gender responsive and socially inclusive recommendations on the nature and proposed structure of an aviation solution going forward, a costed and fully funded business plan, as well as staffing considerations for implementation,” explained CDB VP Operations, Isaac Solomon.