Mia Motley, prime minister of Barbados, said LIAT – the airline owned by Dominica and three other Caribbean governments – is doomed to collapse. Motley said prediction is largely due to the fact that the four governments owning the airline are not on the same page concerning its future. She revealed that the current ownership structure is faulty, and the airline is facing overwhelming financial difficulties.
Motley made these observations as a panelist at townhall meeting held in Barbados. The main focus of the meeting is “CSME: What’s in it for me?” The townhall meeting held at the University of the West Indies (UWI) Cave Hill campus.
According to her, it is not the sole responsibility of CARICOM to keep LIAT afloat. She said it is the responsibility of all government stakeholders, adding trade and tourism may be hampered in the region without the viability of the airline. She said the four government owning the airline must come together to forge a future for it for the sake of regional development in the Caribbean.
Motley went further to say the future of the 63-year-old carrier must not be left to stakeholder governments alone since this is the fastest way for it to collapse. She said the entire Caribbean community must work together for the success and continuity of the air travel enterprise. This is more important considering that LIAT achieved significant visibility this year after upgrading its fleet of planes, reducing overhead costs, and maintaining a huge payroll.
Motley said there would have been a headway in the future of the airline if the negotiation between Barbados and Antigua had not broken down. The breakdown was because both countries could not agree on selling Barbados’ majority shares in the airline.
Motley recommends that one of the major changes that must be made at LIAT include instituting a minimum revenue guarantee policy. She said the same policy exists at American Airlines and Virgin Atlantic Airways, saying this is among the ways to keep LIAT from going under and unprofitable.
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