LIAT loses millions, Dominica to become shareholder

The hangar after the fire

Basseterre, St. Kitts (WINN): Two Organisation of Eastern Caribbean States (OECS) leaders say the regional airline LIAT has suffered millions in losses due to a Sunday night fire that destroyed a Dash- 8 Aircraft and two office buildings in Antigua and Barbuda. Dr. Ralph Gonsalves, the Prime Minister of St. Vincent and the Grenadines, described the loss as tragic. There was no reported death or injury in the incident. Dr. Gonsalves spoke briefly to the media during a break in a meeting of the OECS Authority now underway in St. Vincent and the Grenadines.

“This is a tremendous loss… very costly we will have to get the full dollar value shortly form the CEO but we have been in meetings this morning,” Gonsalves said while announcing that the Commonwealth of Dominica had decided to become a shareholder in LIAT. Antigua and Barbuda’s Prime Minister Baldwin Spencer reinforced the enormity of the loss and the implications for LIAT.

“Losing an aircraft in a system like ours is a major, major loss. Let us hope that we can recover from the situation soonest because LIAT represents such a vital link to us in the Caribbean,” Spencer said. “We are talking about millions upon millions of dollars going down,” he added while signaling that regional governments, the main shareholders in LIAT, would be looking for external investigators to probe the blaze.

”I think the strategy is to bring in individuals who have certain capabilities in that regard to be able to give us a true picture as to what might have transpired …would have caused such a major disaster,” Spencer said. St. Vincent and the Grenadines is hosting the 55th Meeting of the OECS Authority, from June 10-13 at the Buccama Bay Resort. Sunday night the Antigua Observer reported plumes of smoke filling the skies as one of LIAT’s two hangars went up in flames, carrying with it one of its aircraft (A Dash-8 aircraft that was reportedly under repair); the motor pool; operations office, and several other offices.

The Observer reported that firemen fought heavy winds from about 9:40 pm Sunday to put out the flames but two hours later the blaze was still raging. The newspaper quoted a source as saying that the hangar is not used on the weekend and the aircraft was in the centre for a routine C check or engine check. According to the Antigua Observer, the first of several explosions occurred at approximately 10.00 pm followed by “several further blasts, as fuel tanks in the area succumb to the heat and blaze”.

A LIAT source reportedly told the newspaper that fuel and oil would have been stored in the hangar, and would have contributed to the rapid spread of the fire. Monday evening LIAT promised to issue a further advisory on its services at 9.am Tuesday. LIAT is owned by regional shareholders, the majority shareholders are Barbados, Antigua and Barbuda and St. Vincent and the Grenadines. The airline has its headquarters on the grounds of the VC Bird International Airport in St. George, Antigua and operates daily flights to some 21 destinations in the Caribbean.

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41 Comments

  1. oh Oh
    June 14, 2012

    Was the place and contents insured?

  2. Patrick Benjamin
    June 13, 2012

    LIAT needs to restructure. One of it’s main problem is that it is management heavy. It has too much management for it’s size. Their fares around the Caribbean are too expensive and prevents frequent inter island traveling. Their airplane fleet of Dehavillland Dash 8s are very durable and reliable work horses, but the are old, noisy, and uncomfortable and require a lot of maintenance which is costly for LIAT. It needs less and new management with a more modern fleet of airplanes that are less noisy, more comfortable, more fuel efficient, and require less costly maintenance. They must also have monthly promotions with special fares for flights between different islands which will encourage more inter island travel within the Caribbean.

  3. me
    June 13, 2012

    hummmm……..If and i say IF that was insured they will get some much needed help from the insurance company which might go a long way……Liat bad and greedy management is killing the compnay but their hands are tied now and cannot let all of them go….shame shame shame.

  4. Sout Man
    June 12, 2012

    LIAT is truly , “The Caribbean Airline”. LIAT loses money because it schedules at least two daily flights to islands like Dominica. These flights account for dozens of empty seats weekly. No other airline would absorb such a loss.

    If Dominica fails to become a shareholder, we will lose our privileges with LIAT. The airline may not be profitable but all the islands benefit from its services. The hotels, the mail, the inter-island cargo, the passenger service and the jobs, all benefit our people.

    To those who ask for the demise of LIAT, I’d like to say to you that ‘you never miss the water till the well runs dry’. St.Lucia pays American Airlines a few extra million box to schedule flights to St. Lucia to make it viable for the airline. We may soon end up paying LIAT to land with so many empty seats if we do not become a shareholder.

    • Shameless
      June 13, 2012

      We are not calling for the death of the caribbean aviation industry. We are calling for BETTER CHOICE. We recognize the need for air service but LIAT is not a viable long term solution. IT IS DROWNING IN THE SEA OF DEBT WITH NO ONE BEING ABLE TO PULL IT OUT BECAUSE IT IS TOOOOO HEAVY!

      The old saying is sometimes when we try to save our drowning friend we end up drowing with them. In LIATS case, this is what’s happening. We must allow it to die in other for another airline to be born and survive. Now is the right time to start a new airline, let it take over liats equipment and qualified/ compenetent staff and move on. It can then focus on a prudent growth strategy because its debt will be limited. Bankruptcy for LIAT is the only feasible plan outside of total debt forgiveness.

  5. smh
    June 12, 2012

    Everything of Liat going Bad Man.But i am happy no one got hurt.I thinking thats the best result at the end of the day.

  6. my sweet dominica
    June 12, 2012

    i really can’t believe that we are in this 21st century , where so much development is taking place in the rest of the world , countries are building on tourism , technology agriculture where you don’t even have to go to farms etc, everything is advancing , we in Dominica are still living in the past donkey years , still want to be waiting. Liat has exploited us for so many years and we still have not learn and try to more on from them , beginning with building an international airport. Why is it so difficult to see we need an international airport? i have traveled to a few countries and when i mentioned where i am from , most people either have not heard or would say my friend or i have been there and it’s beautiful but traveling on these small planes and landing was so scarey , i am not sure i will be back soon. is that what we want to continuing hearing? Liat has made it’s time and money in our lives, it’s time to move on to bigger and better things or at least we should have choices , then again we are living in Dominica where people don’t see the need for opposition and democracy . Build the dam airport so the market can open . Well seeing is roads alone they want to build maybe we should try to buy cars that can fly. Everything is falling apart in this country and (some ) people are still saying as someone mentioned , thanks God for skerrit, what is wrong with us? Very soon no one will leave able to leave this country by air , because that’s just the beginning of Liats downfall and the few aircraft that are left, they will say Dominica Market is too small so they can come to Dominica anymore , it’s at a lost to them . One thing i know a stitch in time saves nine.Don’t wait for the crisis.

  7. man
    June 12, 2012

    I don’t understand the huge loss. Didn’t liat have insurance?

    • beholder
      June 13, 2012

      Right, surely LIAT has fire insurance on buildings and aircraft. NO business would be uninsured?

  8. PROF. WIKILEAKS
    June 12, 2012

    Ralph it is a tragic loss but that’s why we have insurance.

    I hope LIAT doesn’t use this as an excuse to increase fares/cut staff/ continue lousy servcie and blame the fires.

  9. #whatashame
    June 12, 2012

    I MUST say this,

    instead of jumping like frogs in red shouting #thankGodfor Skerrit, many of you should be screaming #GODSAVEUS, becasue the writing is on the wall.

    1.American eagle will be gone in 6 months,2.LIAT is dying(whether you want to admit it or not) and we are left with 3. An airport that nobody else wants to fly in.

    THere are some of us who genuinely care about dominica, right now the agriculture industry is virtually non-existent, tourism is going no where since nobody in their right mind wants to land in Melvill Hall as it is, and we are not manufacuturing anything.

    A country’s economy doesnt shatter overnight, but in a couple years the damage done may seem almost impossible to repair. What dominica needs is more educated people.
    #WHATASHAME!

    • Shameless
      June 12, 2012

      I am not sure we need more educated people because like it is we have too many. What we need is a strategy that will result in eduction being turned to COMMONSENSE. The older generation had that with little education but now those so called highly educated one have none. They all see one thing; MY POCKET!

      But all I know is that it will take us twice the effort to get back to where we once were after all is said and done. I long for the day when COMMON SENSE replace RARE SENSE in my country.

    • PROF. WIKILEAKS
      June 12, 2012

      We can always beat down ourselves and think we are doing humanity are favour.

      1.American Eagle pulling out of the Caribbean is not a Skerrit problem.
      2. LIAT perceived poor management started before Skerrit. Leeward Islands Air Transport Services was founded on 20 September 1956.
      3. Not having a 100 Acre flat piece of rock in not Skerrit fault and not even Dominca fault and I will not blame the almighty for that.

      So according to you “THere are some of us who genuinely care about dominica”. What do we do…compalin and whine on DNO.

      We need to use our creative minds to create stuff.

      Governemt has never, will never create stuff…get off your laurels…and please don’t ask Skerrit to do that for you too.

      • #whatashame
        June 12, 2012

        amazing how people like you try to communicate with intelligent folks like me and keep passing off like a fool.

        i hope you are not really a professor, your pupils should petition for your discharge, where is that? University of asses are us?

        I’s sorry if i come across as agressive but nobody blamed Skerrit for anything.
        Its FOOLS like you who keep the less-informed folks in their ignorance when people like myself try to ELEVATE the discussion.

        All i am trying to do is remind people of the gravity of the situation. Some people are never able to connect the dots.

        Who said anything about Skerrit’s problem?
        However, I will ignore your suggestion that as Prime Minister, Dominica’s problems are not his, and just say this.

        PS.
        Are you Illiterate? read my comment again. In the realm of educated and informed discussion, people do not talk about “creative stuff.”.
        They discuss material solutions.

    • dirty harry
      June 12, 2012

      all some of u can do is cry down wat we got

  10. Anthony P. Ismael
    June 12, 2012

    LIAT is like the Bogey Man. We want to get rid of him but can’t figure out how to do so. As a result, he just continues to exist.

    So Dominica decides to become a shareholder when they just lost millions. Hmmmmm! Great timing.

  11. wise one
    June 12, 2012

    Can’t believe there are people from dominica with Bachelors, Masters & PhD degrees still sayin we dont need an international airport.

    So you all waited until we need one for us to SCRUNT and find the money to build it.

    If we has built it back in 2000 this sort of thing would not matter one damn bit.

    Just now is FERRIES Alone people will be able to use to come to Dominica. Even in 2012. Allu Pwee if one of thos evolcanoes erupt tomorrow. Just pray none of that happens.

    Cant understand how people can be so myopic and foolish

    • Dreamer
      June 12, 2012

      Hey, “wise one”, this is not a wise comment.

    • Peeping Tom
      June 12, 2012

      wise one: “If we has built it back in 2000 this sort of thing would not matter one damn bit.”
      :mrgreen: :mrgreen: :mrgreen:

      Oh, wise one, are you that convinced that an “international airport” would cushion Dominica form the consequences of a financial loss to LIAT? Really?

      BTW, your first statement is too Dominican: it seems to frown upon persons with “degrees” as if to say “all you so smart and yet….” Don’t hate on people with Bachelors, Masters & PhD degrees because doing so surely does not add to the quality of your post.

  12. islandboy
    June 12, 2012

    as the smart bloggers above mentioned ..WHAT ABOUT THE INSURANCE CLAIMS THAT LIAT SHOULD RECOUP SOME MONIES FROM THIS TRAGIC LOSS… although its in the fine print basically, that liat prob is renting these aircrafts on lease.. so that could pose a prob for LIAT with this loss.. but i think liat will jack up prices in a smart way to the detriment of liat travellers… NEVER BELIEVE THE HYPE PPL , i am sure already behind the scenes Liat has intentions of making some hard cash in the coming yr 2013.. DONT CRY FOR LIAT they are a like a tiger which cannot change its stripes..

  13. Fairplay
    June 12, 2012

    The fire is a blessing in disguise. :?:

    • ....................
      June 12, 2012

      :?: :?: :?: :?: :?: :?: :?: :?:

  14. Frenz
    June 12, 2012

    Good time to hold back. Why put money oin a dead horse that was just babequed.

  15. Abi
    June 12, 2012

    They are not serious why were they paying insurance for? Claim claim claim…… so what they want to do is hike prices to build back.. if liat only lower some of the fares ppl would travel more but with these prices dominica now get to see me once a year.

  16. grell
    June 12, 2012

    NONSENSE WHY SHOULD WE BECOME A SHAREHOLDER NOW LIAT HAS A GREAT LOSS.MOVE FROM ANTIGUA AND GET A NEW HUB.ANTIGUANS ARE VERY BIASED TOWARD US,DONT CARE MUCH ABOUT THAT ISLAND AND THE TOWN STINKS.

    • YahMan
      June 12, 2012

      is true Antiguans HATE Dominicans

      • SMA 1988
        June 12, 2012

        Why should they like us??? Let’s do things for ourselves and MAKE them like us!!!

      • Holiday Island Boy
        June 12, 2012

        Are there two island-nations in the Caribbean that get on with each other? As soon as something happens in the region ,we are hearing that one lot hates the other lot.

    • Anonymous
      June 12, 2012

      but u all still run to Antigua to eat crums.

  17. T. Winston
    June 12, 2012

    Liat is bound to have insurance it’s just proper business practice, so the insurance company is the one who will eat this. If Dominica doesn’t become a shareholder it cannot dictate to liat how to give them flights which are severely lacking. It’s not suppose to be a direct gain but an economic gain. This will be true especially during WCMF and Carnival where people want to come to Dominica but cannot get flights due to limited seating. By becoming an investor in LIAT we would be able to force liat to add more flights to Dominica during those times.

  18. NEW DLP NEWTOWN MP
    June 12, 2012

    so many of us flying liat so its time for us to purchase shares but is that timely what about all d money liat losing? But if liat coolay dominica finish we.

    I want the new DLP Candidate to deal with that mattter. It have enough newtown people working at liat in antigua . We fear for their jobs also ……..SKERRO we love you but we need our new labour candidate ,,,,time for change whether the deacon likes it or not !!!!! No ammount of prpanganda and flattery of Pm skerrit can foool our Pm we not sor sort…..reverse psychology lol skerrit studied psychology ok chicken deacon from …….

  19. POOM
    June 12, 2012

    I have no great knowledge of economics, health care is more my thing but how do you decide to become a shareholder in a failing business enterprise which has been on the decline for years and which shows no promise of growth? Liat has been in a downward spiral for years. Now it has suffered an even greater loss. Why, oh why would you want to invest in LIAT?

  20. Anoushah Alie
    June 12, 2012

    I don’t feel sorry for LIAT, especially since there were no injuries or deaths! Unfortunately, consumers will have to pay for the damages with higher flight prices; that’s who I feel sorry for!

    • PROF. WIKILEAKS
      June 12, 2012

      That’s a moronic statement to make.You should not gloat at unfortunate situations …LIAT is the emplyee and the people who use their services.

    • Anti-Gang
      June 12, 2012

      So what is your point? Are you happy that people will pay more?

  21. Tiger
    June 12, 2012

    They need to install a srinkler system to supress and future fires. They also ought to store flamable liquids in a sepate building specially constructed to prevent the spread of future fires.

    They should use that as a learning experience.

  22. young kid
    June 12, 2012

    that is what insurance is for…lets hope we dont see a hike in airfares…

  23. waiting to exhale
    June 12, 2012

    Awaiting the comments with greeaaat anticipation…. 8) 8) 8) Bring it on! :mrgreen:

  24. Shameless
    June 12, 2012

    Sorry for LIAT’loss but this may be the goose that lay the golden egg. That airline has served its purpose and its time to GO!

    It beats the hell out of me as to why we -Dominica- would invest the little money we have during this global economic downturn in a forever losing proposition. When are we going to get it that LIAT is in lagony (dying) and should be allowed to depart the airline world peacefully? T&T learnt from the BWIA days and bankrupted the company after extensive losses. They immediately filled the gap with a new, lean, viable, properly operated airline but the smaller island are filled with pride and cannot seem to let go of the past. Skerro has once again let us down simply to shore up his buddy Gonsalv.

    Those who have ears let them hear; LET LIAT GO AND START A NEW AIRLINE O SERVICE THE OECS. We will build on it within 5 years to enhance our global reach capabilities. STOP the politicking and use our resources wisely for once.

  25. ...
    June 12, 2012

    did they not have insurance?

    • Anonymous
      June 12, 2012

      KNOWING LIAT ANYTHING IS POSSIBLE.

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