Antigua Finalizes Agreement with Caribbean Development Bank for LIAT Aircraft Purchase

The Government of Antigua & Barbuda has successfully reached an agreement with the Caribbean Development Bank (CDB) to purchase three aircraft previously owned by the now-dissolved Liat 1974 Ltd, known as LIAT (Antigua and Barbuda). Prime Minister Gaston Browne announced the breakthrough in negotiations on February 12, following earlier reports of an offer made by Antigua and Barbuda to acquire the aircraft from the Barbados-based bank on February 2.

The negotiations initially faced hurdles over the valuation of the aircraft, each reportedly valued at USD12.5 million. However, the Antiguan government has managed to secure the deal with USD4.1 million already placed in escrow, set to be transferred upon the signing of the agreement. Completion of the deal is anticipated within the upcoming weeks, though it has been noted that two of the three aircraft are currently not airworthy.

LIAT’s fleet, according to the ch-aviation fleets module, consists of three ATR42-600 aircraft, all of which are either stored or undergoing maintenance. This acquisition is part of Prime Minister Browne’s initiative to launch a new, debt-free airline, LIAT 2020 Ltd, aiming to revive the iconic Caribbean carrier’s operations.

With plans to apply for an Air Operator’s Certificate (AOC) for LIAT 2020 Ltd in the coming weeks, Browne projects that the airline could resume flight operations within 60 to 90 days. This development has reportedly received backing from the prime ministers of Barbados, Dominica, and St. Vincent & the Grenadines, who were major shareholders in the previous iteration of LIAT. Specifically, Dominica’s Prime Minister has already signed on, promising ongoing collaboration for the rejuvenation of the airline.

This agreement marks a significant step towards revitalizing regional air travel in the Caribbean, ensuring continuity in connectivity and potentially leading to the resurgence of LIAT as a key player in the aviation industry.