BASSETERRE, St. Kitts – DAYS after Trinidad and Tobago Prime Minister Keith Rowley announced that LIAT is in need of financing, Grenada has confirmed that it would be lending a hand.
The island’s leaders confirmed that they would be chipping in to assist the airline with a bailout; the first payment will be made by the end of this month.
Addressing reporters on Tuesday (Mar. 5), CARICOM Affairs Minister in St. Georges, Oliver Joseph told reporters that the undisclosed amount would be used to help the company with operational expenses.
According to the Minister, his Government would make a cash contribution to LIAT this month and, going forward, they would pay LIAT additional funds based on load factor.
Regional leaders discussed intra-regional travel and the state of LIAT at the recently completed CARICOM Intersessional Meeting in Basseterre last week; and according to Joseph, his Government’s decision is based on what was presented.
“For Grenada, we have always maintained that we would like to see LIAT continue to serve the people of the region. But in order to contribute state resources to LIAT, the airline must be restructured and operate in a way that ensures sustainability,” urged Joseph.
Following the meeting in Basseterre, Keith Rowley told reporters at a press conference in Port-of- Spain that the airline needed US$5M to operate since it only had funds to operate for 10 days.
That prompted calls from the shareholder governments to call on regional leaders to invest in the airline’s operations.
Joseph noted that they would be awaiting correspondents and official documents from the airline before the additional payouts are made.
He reminded that the airline is in dire need of financial assistance.
Local media reports suggested that there might be a budget cut for the regional airline which could lead to job losses.
At a press conference, Prime Minister Dr. the Hon. Timothy Harris was asked about an impending budget cut and layoffs, to which he indicated that he could not speak to the matter at the time. He however informed that his Cabinet was expected to meet LIAT officials in Basseterre to discuss the airline’s situation.
