LIAT receives St. Kitts debt reprieve

The Government of St. Kitts and Nevis has written off more than XCD11 million East Caribbean dollars (USD4 million) in debt of LIAT (LI, Antigua) as part of efforts to restructure the regional Caribbean airline, Prime Minister Timothy Harris confirmed. He told a media briefing in Basseterre, the decision followed a request from LIAT’s administrator, Cleveland Seaforth of BDO Antigua and Barbuda. The airline, which is currently under administration, is being restructured following a decision by the Government of Antigua and Barbuda. Owned by seven Caribbean governments, LIAT suspended its operations in March 2020 after years of financial difficulties were exacerbated by the COVID-19 pandemic. The airline owed creditors over XCD100 million (USD27 million) when it entered into administration in July 2020. “We accept that LIAT is the largest carrier supporting intra-regional travel and without LIAT there is a major void that has a significant impact on the ease of movement of citizens, residents, and visitors to the region,” Harris told reporters. LIAT on November 30 was scheduled to resume limited commercial services five days a week to seven destinations, including Antigua, Bridgetown, Dominica Douglas-Charles, Grenada, St. Lucia Vigie, Basseterre, and St. Vincent Argyle Int’l, according to a statement by the Office of the Prime Minister of Antigua and Barbuda, Gaston Browne. The airline operated a scheduled flight to Barbados on November 30, but on December 5 was forced to temporarily suspended its operations to Barbados and St. Vincent and the Grenadines on regulatory grounds. The airline in a statement said its route licenses to both destinations had not expired. “However, the airline has been informed by these territories that new arrangements must be made…to operate into Barbados and St. Vincent and the Grenadines. The airline has therefore made the decision to temporarily suspend services to these destinations while these arrangements are being finalised.” “LIAT expects to continue the addition of other destinations to which it will operate a limited schedule of flights,” it said.