ST. JOHN’S, Antigua – The Antigua and Barbuda government says the LIAT 2020 will operate on a viable commercial basis following its decision to enter into an agreement with Africa’s largest private carrier, Air Peace to boost investments in the new entity.
Prime Minister Gaston Browne said that the Nigerian-based company is expected to have a 70 percent stake in the new airline. Air Peace is the largest privately owned airline in Africa with a fleet of over 38 aircraft and over 3000 employees, serving markets in Africa, the Middle East, India, China, and Israel with plans for expansion into Europe.
“So what we are moving now is to establish the AOC, the air operating certificate for LIAT2020 and to have this partnership with Air Peace in which Air Peace will emerge with 70 percent shareholding in the new LIAT.
“They will bring some assets and we will also acquire some assets…and hopefully we will have five, six aircraft operating within the region under the name LIAT. You know LIAT is a strong brand , it’s a regional brand which we believe should be maintained,” Browne added.
He said he is hoping that the new partnership would become a reality “so that we can protect the existing jobs and even to create new jobs for those employees who have been displaced, especially the pilots”.
Antigua and Barbuda is among the handful of Caribbean governments that are the main shareholders of the St. John’s based financially plagued regional airline, LIAT (1974) limited.
In July 202, a High Court here granted a petition allowing for the reorganization of the airline, the appointment of an administrator as well as staying all proceedings relating to the liquidation of the company.
The airline is owned by Antigua and Barbuda, Barbados, Dominica and St. Vincent and the Grenadines and regional trade unions have been seeking the severance payment, estimated at millions of dollars (One EC dollar=US$0.37 cents) for the dismissed workers.
LIAT, prior to entering into administration had been servicing several regional destinations but has since scaled down its operations and is now servicing Anguilla, Antigua, Barbados, Dominica, Guyana, Grenada, Guadeloupe, Martinique, San Juan Puerto Rico, St. Kitts, St. Lucia and St. Maarten.
Browne said that the new entity will be operating on a commercial basis even as he awaits some form of financial contributions from other regional governments.
“I know there are many who would want to second guess that decision, but then again I don’t know of any other viable option at this point. I would accept that regional governments would have indicated a willingness to invest in a regional airline, but in terms of having firm commitments, we are not at that stage.
“We need to move. I mean regional travel is a major issue,” Browne said, adding “this airline will be run and operated strictly on a commercial basis.
“It will not be a regional bus that will be operating on unprofitable routes…it has to operate on profitable routes…and we are looking forward to the eventual officialization of this new LIAT, LIAT 2020 and we are committed to do all we can to ensure its viability and sustainability,” Browne added.
