The court-appointed administrator for the cash-strapped regional airline, LIAT, Cleveland Seaforth, says the airline will wind up its operations in its present type on January 24 this 12 months.
In a letter to employees 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 choice has been taken by the court-appointed Administrator to completely stop all industrial flying operations as of shut of enterprise on January 24, 2024.
“On account of the foregoing, you might be hereby notified that your employment with LIAT (1974) Restricted (in administration) shall be made redundant efficient February 4, 2024.”
The transfer is anticipated to lead to greater than 90 workers being made redundant with none cost and a promise that obligations shall be met.
The airline is owned by the governments of Antigua and Barbuda, Barbados, Dominica and St Vincent and the Grenadines and in the course of the presentation of his nation’s nationwide price range final month, Antigua and Barbuda Prime Minister Gaston Browne stated his authorities had embraced the accountability to restructure and resurrect LIAT, “with a imaginative and prescient of returning the airline to the regional skies”.
Browne stated the airline, which has been underneath administration since July 24, 2020, “has lengthy been a necessary thread within the cloth of Caribbean connectivity.”
LIAT, previous to coming 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, 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, employees attrition, and disruptions brought on by the hurricane season; LIAT 1974 Ltd operated a restricted schedule, making certain very important connectivity throughout locations with 167 devoted employees,” Browne stated of the airline.
Browne stated that the Barbados-based Caribbean Growth Financial institution (CDB) will play a crucial position in solidifying the association among the many governments, including that this can set the stage for finalising the association with Air Peace, a non-public Nigerian airline based in 2013, “in order that LIAT 2020 can start operations, thereby securing a promising future for regional journey.”.
Browne stated that in 2024, the Antigua and Barbuda authorities will spend an estimated EC$30 million to “guarantee LIAT 2020 Ltd has all of the plane wanted and applicable upkeep and operational preparations are in place for the secure, dependable, and environment friendly supply of service to the folks of the area.”
In his letter Seaforth informed the employees 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 recognises its obligation because it pertains to any of the [aforementioned] relevant entitlements, which shall be supplied to you underneath separate cowl inside 45 days of this letter after the respective computations have been accomplished.
“The cost of any indebtedness to you can’t be made at the moment. Nonetheless, each effort shall be made by the Administrator to safe the most effective end result in respect of the indebtedness to all workers in accordance with the corporate’s authorized and contractual necessities,” Seaforth wrote, thanking the employees for his or her “worthwhile contribution” to LIAT (1974) Restricted which resumed flying operations on November 1, 2020.
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