The court-appointed administrator for the cash-strapped regional airline, LIAT, Cleveland Seaforth, says the airline will wind up its operations in its current form on January 24 this year.
In a letter to staff outlining the latest position regarding the Antigua-based LIAT (1974) Ltd, Seaforth wrote, “After careful consideration and evaluation of the present operations, a decision has been taken by the court-appointed Administrator to permanently cease all commercial flying operations as of close of business on January 24, 2024.
“As a result of the foregoing, you are hereby notified that your employment with LIAT (1974) Limited (in administration) will be made redundant effective February 4, 2024.”
The move is expected to result in more than 90 employees being made redundant without any payment and a promise that obligations will be met.
The airline is owned by the governments of Antigua and Barbuda, Barbados, Dominica and St Vincent and the Grenadines and during the presentation of his country’s national budget last month, Antigua and Barbuda Prime Minister Gaston Browne said his government had embraced the responsibility to restructure and resurrect LIAT, with a “with a vision of returning the airline to the regional skies”.
Browne said the airline, which has been under administration since July 24, 2020, “has long been an essential thread in the fabric of Caribbean connectivity”.
Browne said that the Barbados-based Caribbean Development Bank (CDB) will play a critical role in solidifying the arrangement among the governments, adding that this will set the stage for finalising the arrangement with Air Peace, a private Nigerian airline founded in 2013, “so that LIAT 2020 can begin operations, thereby securing a promising future for regional travel”.
Browne said that in 2024, the Antigua and Barbuda government will spend an estimated EC$30 million (One EC dollar=US$0.37 cents) to “ensure LIAT 2020 Ltd has all the aircraft needed and appropriate maintenance and operational arrangements are in place for the safe, reliable, and efficient delivery of service to the people of the region.”
In his letter, Seaforth told the staff the company was not in a position to make any severance payments at this stage, but indicated that it would not be shying away from its obligations to them on severance, vacation pay, retroactive pay and any outstanding salaries.