ST. JOHN’S, Antigua, CMC- The court-appointed Administrator for the cash-strapped regional airline, LIAT, Cleveland Seafort, says the airline will wind up its operations in its present kind on January 24.
In a letter to workers outlining the most recent place concerning the Antigua-based LIAT (1974) Ltd on Thursday, Seaforth wrote, “After cautious consideration and analysis of the current operations, a call has been taken by the court-appointed Administrator to completely stop all business flying operations as of the shut of enterprise on January January 241.5
“On account of the previous, you’re notified at this second that your employment with LIAT (1974) Restricted (in administration) will likely be made redundant efficient February February 4.”
The transfer is anticipated to end in greater than 90 staff being made redundant with out fee and guarantees that obligations will likely be met.
The governments of Antigua and Barbuda, Barbados, Dominica, St. Vincent, and the Grenadines personal the airline. Throughout the presentation of his nation’s nationwide price range final month, Antigua and Barbuda Prime Minister Gaston Browne mentioned his authorities had embraced the duty to restructure and resurrect LIAT with “a imaginative and prescient of returning the airline to the regional skies.”
Browne mentioned the airline, beneath administration since July 24, “has lengthy been a necessary thread within the cloth of Caribbean connectivity.
LIAT, earlier than getting into into administration, had been servicing a number of regional locations and has since scaled down its operations and is now servicing Anguilla, Antigua, Barbados, Dominica, Guyana, Grenada, Guadeloupe, Martinique, San Juan Puerto Rico, St Kitts, St Lucia and St Maarten.
“In 2023, regardless of hurdles, together with unserviceable plane, unresolved points for former employees, monetary constraints, workers attrition, and disruptions attributable to the hurricane season, LIAT 1974 Ltd operated a restricted schedule, guaranteeing important connectivity throughout locations with 167 devoted workers,” Browne mentioned of the airline.
Browne mentioned that the Barbados-based Caribbean Improvement Financial institution (CDB) will play a vital position in solidifying the association among the many governments, including that it will set the stage for finalizing the association with Air Peace, a personal Nigerian airline based in 2013, “in order that LIAT 2020 can start operations, thereby securing a promising future for regional journey.”.
Browne mentioned that in 2024, the Antigua and Barbuda authorities would spend an estimated EC$30 million (One EC greenback=US$0.37 cents) to “guarantee LIAT 2020 Ltd has all of the plane wanted, and acceptable upkeep and operational preparations are in place for the protected, dependable, and environment friendly supply of service to the individuals of the area.
“Within the spirit of optimism and religion in our potential to rise above challenges, we draw inspiration from the phrases, “the glory of the latter home shall be higher than the previous,’ Browne informed legislators, including that “simply as our nation has overcome adversities previously, so too shall LIAT 2020 emerge stronger, extra environment friendly, sustainable, and higher positioned to serve the wants of our individuals and our Caribbean neighbors”.
In his letter, Seaforth informed the workers the corporate was not able to make any severance funds at this stage however indicated that it will not be shying away from its obligations to them on severance, trip pay, retroactive pay, and any excellent salaries.
“The corporate acknowledges its obligation because it pertains to any of the [aforementioned] relevant entitlements, which will likely be offered to you beneath separate cowl inside 45 days of this letter after the respective computations have been accomplished.
“The fee of any indebtedness to you can’t be made now. Nonetheless, each effort will likely be made by the Administrator to safe the perfect end result in respect of the indebtedness to all staff by the corporate’s authorized and contractual necessities,” Seaforth wrote, thanking the employees for his or her “helpful contribution” to LIAT (1974) Restricted which resumed flying operations on NovembeNovember 1
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