LIAT Shareholders Meet in Barbados

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Business News

Wednesday, 01 February 2012 02:30

By caribarena news

Antigua St John's - LIAT’s three major shareholder prime ministers Freundel Stuart QC of Barbados; Baldwin Spencer of Antigua & Barbuda; and Dr Ralph Gonsalves of St Vincent and the Grenadines indicated their continued support for the airline at a meeting in Barbados on Monday.

Under Dr Gonsalves' chairmanship, the three prime ministers met with members of LIAT’s board of directors and management to discuss the regional carrier's future. After this, the shareholder prime ministers, board of directors, and management met with representatives of LIAT’s 10 trade unions in an effort to foster communication and dialogue among LIAT’s stakeholders.

During a press conference, Dr Gonsalves pointed to the $60 M in losses the airline had incurred over the last two years, and noted that the shareholders had agreed with the airline’s management on certain steps for effecting the stabilization of the company.

These would involve a reduction in the airline’s schedule, enhanced marketing and promotions in a number of markets, improving efficiency within certain departments, and targetted staff reductions aimed at reining-in escalating recurrent costs.

Dr Gonsalves said the shareholders had noted the continuing challenges which the company faced, including high oil prices; continuing weaknesses in the regional and international economy; intensified competition on LIAT routes; the costs of maintaining an ageing fleet; and industrial relations problems.

He noted that the company had been mandated to put together proposals for the possible restructuring of LIAT, to be presented to the shareholders for review.

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He pointed to the significance of the company’s planned re-fleeting efforts, and indicated that following in-depth technical work by a LIAT technical team, shareholder governments would be reviewing the various proposals, and plan to meet soon to arrive at a recommendation on the best choices for acquisition of new aircraft for the company.

As for meeting with the unions, Dr Gonsalves noted the need to continue the discussions, and said a further meeting was planned for the following week to try and address outstanding issues, including discussion of the company’s strategic plan and objectives.

On the matter of outstanding pension payments due to LIAT staff members from CLICO, Dr Gonsalves noted that information from the government of Barbados indicated the likelihood of this matter being satisfactorily resolved in the near future.


Chairman of the LIAT board Dr Jean Holder pointed out LIAT’s continuing lead role in the movement of people throughout the region. He noted that LIAT remained committed to closer co-operation with other regional carriers where the interests of the airline and its shareholders were sufficiently guaranteed.

Prime Minister Stuart noted LIAT's continuing importance to the economic and social development of the region, as well as its significance to its shareholder countries. He indicated the three shareholder governments' continuing support for the airline, including working with the company’s management to chart a way toward its long-term sustainability. “We have, in our discussions today, laid the foundation for meaningful progress on the issue of LIAT,” Prime Minister Stuart said.

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