Antigua and Barbuda Seeks Majority Stake in LIAT 2020

Antigua and Barbuda Prime Minister Gaston Browne has proposed that the country may eventually become the majority owner of LIAT 2020 (5L), expressing dissatisfaction with the current valuation method that gives Air Peace Caribbean (APCL) a 70% stake, leaving Antigua and Barbuda with only 30%. Browne criticized the overestimation of the value of two Embraer E145 aircraft provided by Air Peace (P4), which were each valued at USD 5 million, a figure he deemed unrealistic.

Browne argued that the valuation inflated the worth of these planes by projecting unrealistic cash flows over the next decade. He insisted that the aircraft should be valued at market prices, stating, “If it’s USD 5 million, then it’s USD 5 million.” The Prime Minister also pointed out that Antigua and Barbuda had contributed valuable airport real estate assets, which he believed were worth more than the planes provided by Air Peace. He called for a reassessment of the valuation to ensure a more balanced and fair partnership.

In addition, Browne raised concerns about the lack of tangible assets in the new LIAT 2020, questioning what would happen if the airline faced financial difficulties. He emphasized that the government was committed to protecting both its assets and the airline’s workforce. Browne also responded to worries from a technical committee regarding the risks of contributing land on a freehold basis, affirming that the government’s primary focus is safeguarding its investments and securing the future of LIAT and its employees.

LIAT 2020 is a joint venture between APCL and the Antigua and Barbuda government. While APCL is registered in Antigua and Barbuda and operates separately from Air Peace, the involvement of Air Peace CEO Allan Onyema, who faces legal challenges in the US, has added a layer of complexity to the partnership.

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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com