LIAT Chairman: No support, no service

THERE is concern among the stakeholder governments and the management of regional airline LIAT, about the air carrier’s continued service of unprofitable routes, which could total as many as 39.

The point was made several times last Friday during a press conference to apprise the media of the way forward for the decades-old air transportation entity and countries throughout the region are being advised that if they do not give some form of support to the company, they could be removed from the list of destinations serviced by the airline.

From left: Chairman of LIAT, Dr. Jean Holder; Prime Minister
of Barbados, Freundel Stuart; Prime Minister of St. Vincent and
the Grenadines, Dr. Ralph Gonsalves; Prime Minister of Antigua
and Barbuda, Baldwin Spencer; Prime Minister of Dominica,
Roosevelt Skerrit; and CEO of LIAT, Captain Ian Brunton, during
last Friday’s press conference at the Hilton Hotel in Barbados.

Chairman of LIAT, Dr. Jean Holder, said that in addition to a number of strategic decisions which they have had to make over the last few months, they still have to address the issue of the number of social routes which they cannot afford to continue running, without the support of the countries which they serve.

“What LIAT is saying to all of the countries of the Caribbean, ‘we don’t expect any more, we don’t expect any less than the other airlines who provide services.’ I just noticed that Virgin Airlines is not flying to Tobago in the summer unless they get one million pounds sterling in support of their service. Nobody thinks that that is unreasonable, but if LIAT had said that they would not fly into any place unless they get a million pounds sterling in the summer, you would hear all kinds of stories about LIAT,” he said.

Holder continued, “LIAT has not said that it will not operate routes which are important for people. It is saying that the present shareholders cannot and will not continue to subsidise people who want services and are prepared to pay every other airline under the sun market support, route guarantees, etc., etc., and think that there is some sort of heaven given responsibility of LIAT to do this without receiving any support.”


Holder made it clear that they are willing to continue operate the services throughout the region, but will not do so at a loss to the company.

It is with that in mind that the Prime Minister of St. Vincent and the Grenadines and Chairman of the Shareholder Governments of LIAT, Dr. Ralph Gonsalves, indicated that they are hoping to attract additional equity partners, as with the case of the Commonwealth of Dominica which has recently joined the existing shareholder governments of Barbados, Antigua and Barbuda and St. Vincent and the Grenadines to keep the airline afloat.

Gonsalves said that they are in communication with the Prime Minister of St. Lucia, Dr. Kenny Anthony and are confident that now Dominica is on board, St. Lucia will also join them.

“We are asking for other souls to come to LIAT, either as equity partners ... or provide market support particularly for routes which are not profitable. And over a range of countries I have been advised that we have 39 unprofitable routes and those have to be addressed in some form or fashion, including the suggestion made by the proposal in the business plan to engage smaller airlines,” he said. (JRT)