Advertisement 87
Advertisement 211
A LIAT ATR-72 aircraft.
A LIAT ATR-72 aircraft.
Advertisement 219

St. JOHN’S, Antigua (CMC) — Prime Minister Gaston Browne says Barbados has agreed to sell almost all of its shares in the cash strapped regional airline, LIAT, to Antigua and Barbuda.

Browne speaking on his private radio station, said that he had received communication from his Barbados counterpart Mia Mottley, indicating that Bridgetown was willing to sell all but 10 per cent of its shares in the Antigua-based airline that serves 15 Caribbean destinations.

“The intent is not to exclude any country from participating in LIAT. In fact, as far as practicable we would want to broaden the shareholding in LIAT,” Browne told radio listeners.

St. John’s currently holds 34 per cent of the shares and if it succeeds in convincing Bridgetown to part with its LIAT shares, would have 71 per cent of the airline.

“We got a response yesterday afternoon (Saturday) from the distinguished Prime Minister of Barbados, the Honourable Mia Mottley in which she indicated the willingness of Barbados to sell a significant portion of its shares.

Advertisement 21

“She indicated in the latter that they would want to retain at least 10 per cent and that is certainly desirable because we want to make sure that we pursue that model of shared benefits and shared burdens. So the idea is not to divest Barbados of all of its shares,” Browne told radio listeners.

LIAT currently employs over 600 people and operates 491 flights weekly across 15 destinations and Browne said the idea is to have many Caribbean countries included in the ownership of LIAT.

The other shareholder governments are St. Vincent and the Grenadines (SVG), Grenada and Dominica.

Earlier this month, the SVG Prime Minister Ralph Gonsalves said that the shareholder governments had agreed to give further consideration to a proposal by Browne regarding the future direction of the airline.

Gonsalves told the Caribbean Media Corporation that Antigua and Barbuda had made an oral presentation to the shareholders meeting and would present a written document over the next few days.

Gonsalves said he hopes that the proposal from Antigua and Barbuda would be discussed by the shareholders “before the end of May is out”.

St. Lucia Prime Minister Allen Chastanet has said that Castries would not contribute any funds unless there’s a significant change to the airline’s structure.

Browne said his administration had already established a negotiating team and was now awaiting word from Bridgetown for the start of the negotiations.

“We are certainly ready, our team has been established and I have written back to her (Mottley) confirming that our team has been established,” he said.

Browne brushed aside criticisms that his administration was engaged in “one-upmanism” with regards to the efforts to acquire LIAT shares from Barbados, pointing out a significant number of nationals are employed by the airline.

“And I know there are some who may see it as a form of one-upmanship. There was not any form of one-up manship, it was about doing the practical thing to ensure the survivability of LIAT and to protect the Antiguan economy.

“The reality is we have about 400 workers here, LIAT employees and for us to have a situation where the airline is collapsed and with the potential of moving the headquarters to another country, I mean that would be catastrophic.

“So for those who may have taken my account to the people of Antigua and Barbuda as a personal attack, is a form of one-upmanship or shouting across the Caribbean or bigging up my chest, there’s no such thing. It is just a practical solution to an emerging problem,” Browne told his radio listeners.

Grenada recently became the latest shareholder in LIAT and Gonsalves has confirmed that St. Kitts-Nevis had responded positively to the call for raising US$5.4 million to help the airline deal with its current financial problems.

4 replies on “Barbados agrees to sell its LIAT shares to Antigua”

  1. C. ben-David says:

    There is no I doubt that Barbados’ “loss” is no loss at all, as long as the negotiated price is right, and that Antigua-Barbuda’s “gain” will only be a loss for the country and its people unless some anti-angel investor like Sir Richard Branson, owner of Virgin Atlantic and other enterprises buys LIAT at a fire sale price.

    1. It has since been leaked that Branson has no interest in Liat, which is not surprising. It would be more in his interest to start his own small airline to fly to destinations of his liking, to supplement Liat. He will not even do that. I suspect it is because of the very high taxes of the region. Obviously airlines are designed to go from one place to another. For Liat to extend beyond the region they would have to fly to other regions with similar heavy taxes where the passengers are forced to pay the high prices. That itself is “self-defeating”. It is even worse to add even more costs to travel, that is why the airline is destined to always fail until the shareholder governments are willing to curb thier greed and join the Global Community which airlines are dependent upon for survival. Truth is,, like most things in the Caribbean, Liat will never be able to compete against any foreign carrier especially since it is government owned. The governments have it in thier power to do the opposite and make Liat a very inexpensive airline but unfortunately thier greed is more powerful than thier business sense.

  2. Superc Ramesu II says:

    They need to scrap liat or run where it at least does not lose peoples luggage or be late on arrival like every other airline would be some good starters

Comments closed.