Caribbean countries are being asked to contribute a total of US$5.4 million in emergency funding needed to keep the cash strapped Leeward Island Air Transport or LIAT in the sky.
The decision was made during an emergency meeting held in Barbados on Monday.
Countries, including the four major shareholders – Dominica, Antigua and Barbuda, Barbados, and St. Vincent and the Grenadines – along with Grenada, have agreed to contribute to the US$5.4 million.
Dominica, is being asked to contribute US$347,938 in light of its 25 weekly flights, St. Vincent and the Grenadines, with 52 departures per week, will contribute US$723,711 while Grenada, which has 35 LIAT departures per week, is being asked to contribute US$487,113.
Barbados, which has the 116 weekly departures, the highest by LIAT, is being asked to contribute US$1.614 million, while Antigua and Barbuda, which has 69 departures, will contribute US$960,310.
These five countries constitute the “A Group” and while no other government has come forward in the face of the crisis, the shareholder governments are targeting a further three, They are Guyana, St. Kitts and Nevis and St. Lucia, for contributions of US$292,280, US$389,691, and US$584,536, respectively.
Several other countries serviced by LIAT — including Trinidad and Tobago — are not included in the request because they have opposed, up front, putting in any emergency funding into the ailing airline.
This request to inject more and money year after year into this airline’s operations is just simply absurd and unsustainable. LIAT has been a bad investment for decades and will continue to be. Bankruptcy is the only and best option at this point. Just let it go!!
This request to inject more and money year after year into this airline’s operations is just simply absurd and unsustainable. LIAT has been a bad investment for decades and will continue to be. Bankruptcy is the only and best option at this point. Just let it go!!
Who are the people travelling, Officials from private and public walks of life, UWI Students among others, visitors from a cross section of the tourist sector. Can’t those same heads put their heads together and solve this high taxation like Marley said that has been killing the people and when [when] will it ever end. Is the wide cross section of the working population who fall in the tax bracket who pay those taxes, be consumption tax or what have you. They say functional cooperation, why not cooperate now for the sake of all?
The time has come like Marley said: No matter what the crisis is we must live it up!
After having considered what has been deliberated on by our Caribbean heads of Governments on the case for LIAT, a value for money audit needs to be conducted and at the same time keeping an eye on the available option(s).
There is no where on Earth you get a free ride or free lunch.
The time has come, like Marley said no matter what the crisis is, we must live up! After having considered all the deliberations from our regional heads, on the case for LIAT, a value for money audit needs to be conducted, keeping an eye on the available option(s). No where on earth you get a free ride or free lunch.
The main problem with LIAT is the excessive govt taxation. But not one of the comments mention this. Thsts what wrong with the caribbean, we criticise blindly and never solve the problem. Alway now whats wrong but can never fix things.
Almost 60% of a LIAT ticket is tax, how can a business survive under such conditions? By making a LIAT ticket, and inter island travel tax free, the cost of a ticket would make it very attractive for regional travellers. But now the number of fliers dropped from 1.2 million a year to 0.7million and planes are flying empty, but it must be bad LIAT management. It’s not because of high taxes resulting in expensive tickets. Its simple economics, high supply and low demand the price drops. But look they even adding more taxes on the tickets. smfh.
I think LIAT should be sold to a private company. I don’t understand how this Lt operating at a lost for so long. Shame.
Its something i have mentioned to people close to the situation on the ground liat needs to follow the lead Which american airline and the other carriers have done,get rid off a one time lump sum of overweight Fees and start charging customers per bag .imagine having 50 pieces of checked in luggage place on an aircraft with only 2 being overweight paid compare to 50 bags at us $20 ,thats us1000 on one flight With that said the bad financial situation would not be as prevalent
Liat seems to a cow that certain individuals have been milking. certain persons need to be seriously investigated. Most of these big companies have alot of hidden secrets like certain persons renting houses or officer spaces for more that it is worth just for kickbacks. Contracts to friends and so on, thus increasing the operational cost.
We as a people need to be mindful. our governments cannot keep pumping monies into things that do not make sense. The amount liat charging for overweight alone should cover alot of costs.
Could you believe liat operates a monopoly and still fails to bring a profit and ever so often begging can we get the ferries government I am sure 5.4usd million can by a ferry
Since DA does not have many options for air accessibility, I’m afraid tax payers of this country will cough up the requested money needed from Dominica. We need 21st century facilities in order to attract 21st century air access options
So Barbados, Antigua, St Lucia, St Vincent and Grenada dont have an international airport too, thats why they don’t have many air accessiblity options and need LIAT.
Think before you write.
LIAT should be: Initiative led, not funding fed.
Antigua once had majority shares in Liat. Whenever Liat nedded rescuing tbey pumped monies into it with no returns. Barbados on the other hand was smart and every cent pumped into Liat wasusedto purchase shares. Today Barbados has majority shares. Cafibbean governments are being asked to pump monies into Liat. Is that in return for shares or are they just throwing money into a bottomless pit to pay high salaries for Liat executives? Get smart leaders. Make sure that every sent spent in Liat is an investment and goes towards shares.
I do not support any public money going to LIAT. LIAT should either stand on its own, go out of business or restructure in bankruptcy. Public money may be part of LIAT’s problem. It may be government interference in its business decisions may be inhibiting management from making sound decisions. The number of flights should be dictated by the demand of flying public and not government stipulation on account of its contribution to LIAT’s purse.
Liat is a fraud. It should be investigated for finacial crimes and mismanagement. dominica paid 8 million of Tax payers money. Where are the returns. Now government giving more. I think parliament should meet to approve. Let liat fail.
More band-aids when what they need is major structural change to the cost of travel within the region. But then again, one should not expect them to try something new and innovative. I had to visit DA in a rush last month and when I was leaving I still had to hand my passport and boarding pass to a guy who was behind a glass between the LIAT counter and the entrance to the departure lounge. He was writing my information on one of those old fashion ledgers books. Why they keep doing that, only God knows. I travel extensively and I do not know of anywhere else where that is done.
Our region will always be left behind because our leaders are not visionaries. They keep doing the same thing because that is how they have done it.
Bet you didn’t see his face either Zandoli. Seriously, as long as they don’t explain that. Odd setup I must expect coshonie going on there.
I’m interested to see what conditions that Skerritt will impose on LIAT management if any about this new injection of money into the airline. Considering that through him Dominica had given some $8million for which the country received less service he should if he’s going to inject more money get a signed agreement as to the frequency of guaranteed services that Dominica will receive. Additionally, the heads of those governments who put up money to keep Liat afloat need to do something about their powerful union being able to hold travelers to ransom. LIAT is like a military a country has and must keep functioning even if there isn’t any violent dispute on its borders.
Tax payers were sucked once more into funding this crappy airline.
Let liat go packing bad management let another company buy them
eh ehm!!..more money in the River like how Skerrit say when he give Public Works Money..SMH
All you, the immediate problem might be money, yes. But that is a short term solution, it’s not the first time Governments shell out money for LIAT and look where we are today. Governments, Citizens dig deeper please. Our Caribbean economies need better administration. After this money done, what next??
It is sad that that is exactly how some of these same PMs run their countries. They don’t go beyond the surface issues and try and throw money at everything, no wonder our taxes are so high and no real industry is being developed. We can surely draw some Parallels between the LIAT saga and the situation in our own Country Dominica.
Governments should never be involved in the running of a business.
A government’s main concerns should be: People, Citizens and Constituents.
A business’s main concerns should be: Profit, Shareholders and Customers.
Any alternative is a recipe for failure.
Child of Itassi, kindly educate me what is the difference between People, Citizens and Constituents?
No difference Ras, they all human beings, our own.
Frankly and unfortunately I do not understand our Leaders.
What really is the issue? And what or who is at stake here?
Money seems to be the answer to all their problems lately…
Richard Bronson should be asked to buy out L I A T so he can fire everyone and start the airline over from scratch. Pumping money into the problem is not going to work magic and make the problem go away. It will not change a thing, it is just wasted money. Anyone who fly’s L I A T is taking a chance with their life. If they have no money to operate the airline who is paying the mechanics and crew to do a good job making sure the aircraft’s are safe especially flying over water ? They may be taking short cuts with repair parts and using cannibalized old UN-serviceable parts because they cannot afford to purchase new ones.
So liat is a pimp airline now,they hustle each island to fly into them,I just dont gey this,who is really running liat,someone please give me the breakdown.
This begs the question why the operational centre of the airline should not be moved to Barbados, which has in excess of 68% more weekly LIAT departures than Antigua & Barbuda. Since we are all asked to contribute to the costs of the airline it can not be reasonable c for Antigua to insist that it must be headquartered there.
Remember when a significant part of LIAT’s operation was based in Barbados, and Antigua insisted on relocating much of that operation to Antigua, putting many a LIAT employee based in Barbados out of work. Looks like LIAT is being used in Antigua, like how most ministries in the Caribbean are used…………employment exchanges for party supporters.
OH LIAT LIAT LIAT.
I commend the governments for supporting the one of the region’s main source of transport but OH LIAT LIAT. LIAT’s issue is misguided priorities. Yes, you are there to make a profit but not with those over inflated prices. I read the chairman spoke recently of the lowering of the countries’ travelling taxes which I must agree with 100% however, Dominica has one of the lowest travelling tax rates in the Caribbean but yet we get fewer flights and those with the higher travelling rates get the most flights.
The price of intra-regional travels is too exorbitant. If price were to decrease I am betting everything that the number of travels between the countries will increase vastly
Liat needs to go R. I. P we need our money for more important things. Liat was bailed out before this is becoming a habit.
I just want to know, how the Dominican people benefit from this contribution which i believe to be the second to an airline whose soaring prices continue to plague the Dominica tourism.
More money thrown away. They’ll be back for more.
Same story, different chapter. No end in sight when it comes to money problems for this airline. If they at least treated passengers well, they might have more support. But alas, no.
Yes, just like government, submit a supplementary budget, easy.