THE plans to liquidate regional airline LIAT are not likely to be reversed, with regional governments simply not having the finances needed to keep it in the air.
So says outgoing Chairman of CARICOM and Prime Minister of Barbados, Mia Amor Mottley, who as she spoke on the demise of the airline and the impact of such on intra-regional travel, said Heads of Government decided earlier this week that those countries that are in a position to help stimulate air travel by reducing airline taxes, should seek to do so.
Speaking yesterday during a virtual ceremony to mark the handover of the chairmanship of CARICOM to her St. Vincent and the Grenadines counterpart Dr. Ralph Gonsalves, PM Mottley made it clear that the decision to wind up the operations of LIAT was not an easy one to make. But, she indicated, they recognised that what may have served the region well in the past, may not now be the right instrument for the region going forward.
Mottley told fellow Heads and those tuning in online, that the decision was necessary given the "heavy debt" which LIAT has been carrying for years. She explained that the Board of Directors advised that it is no longer possible to trade as LIAT (1974) Limited and with the company being effectively bankrupt, it should be liquidated.
"They would have done so conscious of the fact that unless you liquidate an insolvent company, directors would be guilty of fraudulent trading and to that extent, as shareholder governments, we have had to respond simply because to do otherwise would mean providing a level of funding that we simply do not have at this time," she said.
Nevertheless, Mottley said the shareholder governments remain committed to safe, reliable and affordable travel within the Eastern Caribbean. Her comments came as she said there are already 38 airlines flying within the Caribbean airspace. She indicated that the majority of those fly within the Northern Caribbean, with the Southern Caribbean having the greatest gap, but she revealed that since the news broke of LIAT's demise, some six airlines have expressed an interest in filling the void.
"SVG Air and One Caribbean out of St. Vincent and the Grenadines... CAL, which is already an airline known to the region; interCaribbean which is an airline from the Turks and Caicos and is a successor airline to Air Turks and Caicos that has been around for over twenty something years with an extensive fleet as well; Silver which we have asked to meet with us over the course of the next few days, and that is an airline out of the United States of America but working within the Caribbean and between the US and the Caribbean; and of course Air Antilles which is French-based as you know and predominantly between Martinique, Guadeloupe and Paris, but has an interest now in working within the Southern Caribbean," she stated.
Mottley, who holds lead responsibility within the CARICOM quasi-Cabinet for the CARICOM Single Market and Economy, indicated that they are satisfied that those six airlines can fill the immediate gap, especially given the reduce travel as a result of the COVID-19 pandemic. At the same time, she said it is hoped that the region can work with other private sector players that have expressed an interest in providing intra-regional airlift either on their own or with existing players.
"Governments have now to use their funds to be able to deal with health expenditure; to be able to deal with water; to be able to deal with other forms of transport; to be able to deal with the fact that our tourism sector as well as our vulnerable populations are all requiring us to hold their hands, because they have come to zero revenue," Mottley stated.
The PM made the point while noting that unemployment across the region is on the rise, with some countries - figures doubling or even tripling in recent times.
"Therefore, we come to this moment not because there is pleasure in coming to this moment; we come to this movement as a matter of practical reality. That governments must focus on keeping their citizens alive; governments must focus on keeping their economies going and if that focus can allow others to come on board and to be able to help us carry the weight well my people in Barbados would tell you, I live by the mantra - many hands make light work," she said.
In that vein, PM Mottley said they look forward to being able to ensure that the people of the region have access to affordable, safe and reliable access to air travel within the next few weeks. (JRT)