Editorial Staff
2 months ago

Editorial Staff
2 months ago

The commencement of LIAT 2020 operations is pending the AOC.

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LIAT 2020, the new airline venture between the government of Antigua and Barbuda and Nigerian airline, Air Peace, is eagerly waiting for the issuance of ‘no objections’ letters from the shareholders of LIAT 1974 Ltd. to purchase one of the three aircraft the company has on lease.

These letters are essential to clear the way for LIAT 2020 to obtain an Air Operator Certificate (AOC) as the new airline cannot commence operations without one.

The purchase of one of the planes at the current commercial value will help LIAT 2020 to get the AOC.

The Prime Minister of Antigua and Barbuda, Gaston Browne, emphasized that owning an aircraft is crucial to get the AOC for the new airline.

The ‘no objections’ letters from the shareholder governments are required to facilitate the sale, and PM Browne is hoping to receive them by this week to complete the purchase of the first aircraft.

The cost of the aircraft is estimated to be between 4 and 4.5 million dollars (US).

The joint venture between the government of Antigua and Barbuda and Air Peace will see the Nigerian airline holding the majority stake of around 70%, while Antigua and Barbuda will hold the remaining 30%.

However, several Caribbean governments, including Dominica, Barbados, St Vincent and the Grenadine and St. Kitts-Nevis, have shown interest in participating in the ownership of the airline. Antigua and Barbuda has indicated that it is willing to dilute its shareholding to accommodate the other countries’ participation.

LIAT 1974 Ltd. has been under administration since July 24, 2020, after declaring bankruptcy.

The airline restarted its operations in November 2020 and offered a limited schedule to destinations like Antigua, Barbados, the British Virgin Islands, St Maarten, and Dominica.

Cleveland Seaforth of BDO Eastern Caribbean is the cash-strapped airline’s court-appointed administrator.

Unfortunately, the company will wind up its operations before the end of the month after careful consideration and evaluation of the present operations.

In a letter to the airline’s staff, Seaforth stated that all commercial flying operations would cease as of January 24, 2024.

The employees of LIAT (1974) Limited (in administration) will be made redundant effective February 4, 2024. However, the Prime Minister has assured that the majority of LIAT 1974’s staff will be rehired at the new company.

1 Comment

  1. Teacher for Life

    I hope this endeavor comes to fruition and commences direct flights to and from St. Croix. Trying to get there from Antigua is like buying a ticket to the US.

    Reply

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