The Antigua and Barbuda authorities says it stays assured that the brand new regional airline, LIAT 2020 will start business operations early subsequent month.
However the authorities says it’s nonetheless awaiting a response from the Barbados-based Caribbean Improvement Financial institution (CDB) relating to its name for the financial institution and regional shareholder governments within the bankrupt airline to relinquish their curiosity in an escrow fund and use the finance to fulfill the severance funds owed to the previous workers.
A press release issued following the weekly Cupboard assembly, famous that the ministers “held a really temporary dialogue on LIAT (2020) and the potential startup date for its re-commencement of business flights.
“Though a exact date has not but been determined, the Cupboard is assured LIAT will take to the skies in early August 2024,” the assertion mentioned.
Chief of Employees within the Prime Minister’s Workplace, Lionel Hurst, later advised reporters that the primary business flight of LIAT 2020 might coincide with the upgrading of the airport on Barbuda.
“Every part is prepared in Barbuda. The runway is prepared, the workers is in place for receiving flights. When LIAT takes off from Antigua as a business provider, the primary place it should land might be in Barbuda; that’s the expectation, on the new airport in Barbuda,” he added.
The brand new airport at present boasts a 6,100-foot runway with plans in place to increase it by a further 2,000 toes, bringing the full size to over 8,000 toes.
Antigua and Barbuda is now concerned in an settlement with the personal Nigerian-based airline, Air Peace within the institution of LIAT 2020 airline and earlier this yr Prime Minister Gaston Browne had mentioned that Air Peace can be placing in near US$65 million, whereas his authorities is investing US$20 million.
As well as, the federal government mentioned it could pay US$12.1 million into an escrow account for the acquisition of different airplane owned by the Barbados-based Caribbean Improvement Financial institution (CDB) as efforts proceed to launch LIAT (2020) Restricted.
However Browne has since mentioned that the CDB and the shareholder governments of LIAT (1974) Restricted ought to relinquish their curiosity within the escrow funds.
“The Cupboard remains to be awaiting a choice by the Caribbean Improvement Financial institution (CDB) in relation to 12.1 million US {dollars} which Antigua and Barbuda has paid over for the acquisition of three plane, and the re-purposing of that cash to pay former LIAT workers,” the Cupboard assertion famous.
However in an announcement final month, the CDB mentioned it’s not a celebration to the sale settlement relating to the plane belonging to LIAT (1974) that went bankrupt earlier this yr.
It mentioned its “solely function is to supply the required consent for the sale, which it has performed” and that below the sale association agreed to by the shareholder governments, they “authorized that cash from the sale must be proportionately allotted in direction of paying excellent balances on the CDB loans that had been initially made to the shareholder governments to help LIAT (1974) Restricted’s operations.
“The choice about using the sale proceeds rests with the shareholder governments. CDB just isn’t concerned within the financing or any facet of the operations of LIAT 2020.”
Browne had mentioned he can be writing to the shareholder governments of the collapsed regional airline suggesting that they relinquish their curiosity in an escrow fund and use the finance to fulfill the severance funds owed to the previous workers.
“The Antigua and Barbuda authorities has all the time agreed to and maintained that the LIAT employees must be paid gratuitous cost representing the severance that may have been payable if the corporate had belongings,” Browne mentioned.
He mentioned his administration had initially put ahead a proposal to pay 50 per cent, however was decreased to 30 per cent “due to the shortage of cooperation of the Antigua and Barbuda Employees Union (ABWU).
However the ABWU is insisting that the previous LIAT employees, together with pilots, are owed tens of millions of {dollars} (One EC greenback=US$0.37 cents) in severance and different advantages and has been calling on the federal government to barter the package deal.
