LIAT will remain in the skies – PM Gonsalves

The regional airline LIAT is not going anywhere, anytime soon.

“We going be alright. We still need some more money, but there is a little light at the end of the tunnel and reforms still have to be carried out, but we will be alright,” Prime Minister Dr Ralph Gonsalves told SEARCHLIGHT yesterday, seven days after he chaired an extraordinary general meeting (EGM) of LIAT’s shareholders in Antigua.

The Prime Minister said the meeting was held to look at the auditors accounts of LIAT for the year 2017 and to get a report on the unaudited draft accounts for 2018 while also looking at the restructuring process and the next steps aimed at moving forward.

LIAT announced in March that it was once again having financial issues and needed an immediate input of US$5.4 million.

Prime Minister of Antigua and Barbuda Gaston Browne

Gonsalves disclosed that St Kitts and Nevis has put in approximately EC$1 million of the US$5.4 million LIAT needs, while the shareholders — Barbados, Antigua, St Vincent and the Grenadines (SVG), Dominica and Grenada have all contributed.

The only Organisation of Eastern Caribbean State (OECS) that has not contributed so far is St Lucia, Gonsalves said.

He noted also that they are looking at the Minimum Revenue Guarantees (MRGs) with an aim to tweak the numbers. The request for MRGs from countries served by LIAT is part of an amended restructuring plan which was endorsed by shareholder governments, following a meeting in St Vincent on March 9.

“… So, I feel better today than I felt about the LIAT before the meeting, so we made some progress,” stated Gonsalves who also noted more discussions need to be held with LIAT employees “about other things”.

The Prime Minister also noted that during the meeting, Antigua and Barbuda made an oral presentation through their prime minister Gaston Browne about buying some of the LIAT shares owned by the Barbados government.

Gonsalves said the question was also asked if other shareholders will do the same in an effort to relieve Barbados of some pressure due to their International Monetary Fund (IMF) program. That country has sought help from the IMF aimed at an Economic Recovery and Transformation plan.

“He (PM Browne) gave some elements of his program and said that within the month, he will put it in writing and the shareholders will give a serious consideration,” Gonsalves said while adding that some of the shareholders are very supportive of the offer which will be fleshed out at the annual shareholders meeting later this year.