Right direction

FROM LEFT: Prime Minister of Barbados, Freundel Stuart;
CEO of LIAT, Captain Ian Brunton; Prime Minister of Antigua
and Barbuda, Baldwin Spencer; and Prime Minister of
St. Vincent and the Grenadines, Dr. Ralph Gonsalves
share a light moment after the press conference.

REGIONAL airline LIAT did lose money this year, but only half the amount of the losses recorded during 2011. Furthermore, rather than contracting, it continues to look for ways to expand its operations.

This disclosure came from Chairman of LIAT, Dr. Jean Holder, during a recent press conference at the Hilton Hotel in Barbados. The press conference followed a meeting of the stakeholder Governments of the regional carrier, which saw the new equity partner, the Commonwealth of Dominica, join Antigua and Barbuda, Barbados and St. Vincent and the Grenadines at the table for the first time.

“That is moving in the right direction; that is some good news. Other people have been meeting to close down, we have been meeting to say we are on a new track which involves our expanding this carrier; trying to provide a far more professional and efficient service; and looking in fact at this time at what new markets, what new worlds we can and must conquer,” he said.

Holder made that disclosure as he also spoke to the decision taken by the regional company to re-fleet. He maintained that the decision to re-fleet at this time is not an option, but a necessity, as they cannot continue to provide service to the existing network of 21 destinations unless there is refreshed aircraft.

To that end, he said that with a new fleet they can expect to cut costs in terms of maintenance and fuel considerably.

“Therefore, our targets for turning around the finances of this airline, they are not mythical. They are realistic, they are practical and we are willing to identify and set targets which we think we can meet. While we are looking to improve the finances of LIAT, we are looking to improve the services, which to some extent are a function of an ageing fleet and the fact that we have a lot of mechanical issues to address, which obviously impact upon customer service,” he said.  

Meanwhile, making reference to the new planes the airline would be procuring, Chief Executive Officer Captain Ian Brunton told the media that without new revenue the airline would stumble.

He said that the intention is to have 12 new airplanes by the end of 2014, but they will secure four between May and June of 2013 – a mixture of 48-seater and 68-seater aircraft to satisfy their existing network and the expansion they need to help sustain the airline.

The CEO indicated that they expect to at least break even or make a EC$7 million profit next year. They then anticipate progression to a profit margin of nine per cent.

Brunton also told the media that they will purchase five new planes immediately at a cost of US$23.1 million – to be financed through funds from the stakeholder governments – with the remainder of the money to be made possible by a commercial loan, which he said will have favourable terms. (JRT)