BASSETERRE, St. Kitts – DESPITE reports of LIAT being cash strapped and only has funds to survive for 10 days, officials of the regional airline are assuring that they would continue to operate.
In a statement, LIAT’s Chief Executive Officer, Mrs. Julie Reifer-Jones reassured passengers that the airline would continue to operate in a safe and efficient manner to provide connectivity and service to the region.
Talks of the airline being cash strapped came one day after Trinidad and Tobago’s Prime Minister, Keith Rowley indicated that the airline was short on funds and needed US$5M to continue its operation.
Speaking at a press conference after returning from the 30th Intersessional Meeting in Basseterre, Rowley told reporters that there would be a serious economic impact on the region if the airline stops operating.
“The Heads of Government were informed that LIAT is in serious financial difficulty, needing within a matter of a fortnight an injection of a minimum US$5 million in order to keep flying. Now, if LIAT ceases to fly, I need not tell you the economic and other impacts that that would have on the region. While Trinidad and Tobago does not rely heavily on LIAT for transportation, the other territories are virtually at the mercy of a LIAT service,” the PM stressed.
Mrs. Reifer-Jones, while acknowledging that the airline is in a challenging financial situation, said, “LIAT has continued flying through the region with support from its principal shareholders: the Governments of Barbados, Antigua & Barbuda, St. Vincent & the Grenadines and Dominica.”
She however noted that the airline has also been operating to destinations where there has been no support from governments and authorities to ensure that critical connectivity remains.
PM Rowley noted that one of the problems LIAT faces is that it continues to operate in “uneconomic routes”.
“… part of LIAT’s problems had to do with LIAT flying uneconomic routes with loads that are heavily subsidized. And if the airline is to remain flying to countries that have routes like that, the shareholders are saying that such countries will have to guarantee a minimum revenue stream to the airline or the airline would cease to fly on those routes.”
According to LIAT’s boss, the current discussions with Regional Governments are intended to put in place new arrangements, which provide a basis for sharing the burden amongst all the countries currently benefitting from LIAT’s services.
Mrs. Reifer-Jones noted that all stakeholders, whether labour, suppliers or financiers, would be called upon to make adjustments aimed at achieving a viable airline operation.
“The airline has already been working to improve its On-Time Performance”, she said, adding that 83 percent of the airline’s flights were on time in 2018.
“The airline is currently undergoing a restructuring exercise, which is expected to improve the operations of the airline as the company moves to build a sustainable model,” the CEO informed.
Officials of the airline are expected in Basseterre tomorrow (Mar. 4) to hold discussions with Cabinet on its plans.
