Gov’t nears acquisition of first LIAT 2020 aircraft, approval pending from shareholders

By Zaya Williams

The government is on the brink of acquiring its first aircraft for LIAT 2020, according to Information Minister Melford Nicholas.

He disclosed that during Wednesday’s Cabinet meeting, they were informed that some shareholder governments are yet to approve an agreement with the Caribbean Development Bank (CDB).

“The government of Barbados through the Prime Minister Mia Mottley, she had signed her consent. I think we are waiting on the consent from Prime Minister Gonsalves. Those are the two major shareholder governments who we were awaiting their consent but we would have completed the arrangement with CDB… I did not hear any mention of Prime Minister Skerritt from Dominica but I think he also will need to give his consent,” he shared.

Nicholas stated that the funds are already available and are sitting in escrow until the final approval, which will lead to the first aircraft being cosigned to LIAT 2020.

He added that after that they will obtain the Air Operator Certificate (AOC) “and thenceforth it’s a matter of the implementation of all of the operational requirements.”

Last week, Chief of Staff in the office of the Prime Minister, Lionel Hurst, revealed that the first aircraft is set to be purchased for $4.1 million USD. Following this, three additional aircraft will be acquired from the Caribbean Development Bank.

LIAT 1974 Ltd officially ceased all operations on January 24, 2024, under the guidance of court-appointed administrator Cleveland Seaforth. The airline had long been the premier carrier in the subregion, but persistent financial challenges led to its downfall, leaving a significant void in the market.

Since then, the government has been actively working towards revitalizing LIAT through LIAT 2020, forging a partnership with Nigerian carrier Air Peace in an effort to rebuild the airline and restore regional connectivity.