ST. VINCENT | Ralph Gonsalves proposes new airline to replace LIAT 2020

St Vincent and the Grenadines Prime Minister, Ralph Gonsalves, seems to have had a rethink of the concept of  a Regional airline and seems ready to invest in a new version of the  Leeward Islands Air Transport, LIAT.

In fact, Gonsalves says the development of a new regional airline would be better for the Eastern Caribbean than a revival of the LIAT brand.

Speaking on Observer AM yesterday, Gonsalves repeated his recent suggestion that a new regional airline could  be headquartered in St. Vincent and the Grenadines.

Earlier this week he announced that he had been provided with a document by the Caribbean Development Bank (CDB) outlining a plan for the financing and operation of a regional carrier.

The CDB has been studying the issue of regional air transportation from as early as May 2015 and was asked once again by regional leaders in January 2023 to review the long-standing scarcity of transportation which has shackled the free movement of people within Caricom.

Gonsalves proposed that  “my perspective and that which I am urging, is a new entity [and] you can call it WIAT if you want—West Indies Air Transport—or whatever name you want to call it''.

He explained that the revitalisation of the Antigua-based airline could lead to future litigation, such as from the carrier’s creditors – something regional leaders were keen to avoid.

“I know LIAT has a particular marketing brand and has served us well until it collapsed in 2020. But I am not clear in my mind and have not been properly advised that reviving the airline under LIAT 2020 or 2023 Ltd would not present some particular hurdles and potential litigation,” Gonsalves argued.

Regional air transportation has been a hotly debated topic among Caribbean leaders, as costs for intra-regional travel continue to rise and delays have continued to frustrate regional travellers.

“I believe everybody is on the same page with that particular purpose in the OECS, but persons may have different perspectives as to how we get to that,” he said.

Dr Gonsalves stated that long-time critics of LIAT were now waking up to the invaluable service that the regional airline provided during its lifetime.

Gonsalves has criticized the poor service offered by Inter Caribbean Airways, which is based in Turks and Caicos. Inter-Caribbean passengers have complained about long delays, with some missing international connections, and have had to pay thousands of dollars for new tickets due to delayed or canceled flights.

InterCaribbean Airlines has been receiving negative feedback from passengers in recent months due to extended delays that have caused some travelers to miss their international connections.

The airline’s operations have been either late or canceled, and as a result, some patrons have had to spend significant amounts of money – often in the thousands of dollars – to secure new flight tickets.

LIAT Limited, which is owned by the governments of Antigua and Barbuda, Barbados, Dominica, and St. Vincent, and the Grenadines, began an administration phase in July 2020.

This decision was prompted by escalating debts coupled with the adverse effects of the COVID-19 pandemic. In response, Antigua and Barbuda established LIAT 2020, which currently maintains a limited flight schedule across the region.

Simultaneously, the Antiguan government is actively pursuing a partnership with Air Peace, Africa’s preeminent private carrier, to bolster investments in LIAT 2020 Limited.

This proposed collaboration entails both entities injecting funds and other valuable assets into LIAT 2020, culminating in Air Peace securing a controlling interest.

This endeavor aims to establish an airline capable of effectively catering to the interisland connectivity demands within the Eastern Caribbean.

Prime Minister Gonsalves also spoke about the compassionate payment offer made by Prime Minister Gaston Browne to former LIAT workers in lieu of full severance, which has been a point of contention between their local bargaining agent, the Antigua and Barbuda Workers Union (ABWU), and the government.

“With all the constraints and all the problems that a government has, when Gaston [Browne] offered, as I understand it, 50 percent and to give cash for some and lands or bonds or both … I didn’t think that was something unreasonable and to incur the ire of union leadership,” Dr Gonsalves said.

The ABWU has maintained that any potential agreement should be based on 100 percent of severance comprising a majority cash component and the remainder organised as shares in any future derivative of LIAT. 

“I am a labour man, I am a farmer man and I am a travelling public man; I want to be fair to small restaurateurs, small hoteliers, because these people are on the margins also,” Gonsalves added.