LIAT 1974 Ltd to Cease Operations, Transitioning to New Entity LIAT 2020 Ltd

LIAT 1974 Ltd, operating as LIAT, is set to cease operations on January 24, 2024, paving the way for the emergence of a new entity, LIAT 2020 Ltd. This transition, however, will result in the loss of over 90 jobs.

The decision to liquidate the debt-laden LIAT 1974 Ltd and transfer its assets to LIAT 2020 Ltd was made in 2022 by the airline’s major shareholders, including the governments of Antigua & Barbuda, Barbados, Dominica, and St. Vincent & the Grenadines. LIAT 1974 Ltd had entered administration in mid-2020 with debts exceeding XCD100 million East Caribbean dollars (USD37 million).

LIAT currently operates three ATR42-600s, with one inactive, serving 34 routes across 10 countries in the region.

Despite some hesitation among government shareholders regarding the shutdown of LIAT, Antigua’s Prime Minister Gaston Browne has been a vocal supporter of the airline. Recently, Browne expressed intentions to secure funding from the Caribbean Development Bank for the acquisition of up to three aircraft from CDB Aviation for the new LIAT 2020 Ltd.

Browne’s plans include concluding the operations of LIAT by the end of January while simultaneously commencing LIAT 2020. The new entity, LIAT 2020 Ltd, will see a shift in shareholding structure, with Nigeria’s Air Peace set to become the majority shareholder, contributing “cash and other assets.”

Meanwhile, LIAT’s current employees received communication from the airline’s administrator, Cleveland Seaforth of KPMG Saint John’s office, informing them of the end of their employment effective February 4, 2024. The company assured that it would fulfill its obligations regarding applicable entitlements to the employees.

Prime Minister Browne also assured that most LIAT workers would find employment opportunities with LIAT 2020 Ltd, emphasizing the joint efforts of his government, the Caribbean Development Bank, and Air Peace to ensure a smooth transition and the continued provision of reliable air services in the region. This transition marks a significant shift in the Caribbean aviation landscape, as stakeholders work towards establishing a more financially sustainable and efficient regional airline.