LIAT financial woes to likely impact VI’s airlift
LIAT is in presently in urgent need of a cash injection of at least $5M to remain in operation.
Prime Minister Dr Keith C. Rowley, made the revelation at a media conference at the Piarco International Airport in Trinidad and Tobago, on his return from the 30th Caribbean Community (CARICOM) meeting, in St Kitts and Nevis, on Thursday, February 28, 2019, last.
Belly Up
The Trinidadian Prime Minister observed that his country would not be impacted severely by a LIAT pull out and disclosed too, the situation was more dire, for the airline’s shareholders who would need to act urgently to ensure that LIAT does not go belly-up.
Adding to LIAT’s financial troubles, the airline owes the Caribbean Development Bank (CDB) significant sums of money which the shareholders now are required to address.
Further, LIAT is said to be currently flying uneconomic routes that are heavily subsidised.
“And if the airline is to remain flying to countries that have routes like that, the shareholders are saying that such countries will have to guarantee a minimum revenue stream to the airline or the airline would cease to fly on those routes (including the VI),” Rowley said.
The Terrance B. Lettsome International Airport at Beef Island, VI serves as one of LIAT's critical Caribbean hubs in servicing its routes.
Prime Minister Rowley has reportedly agreed to allow LIAT to speak with Caribbean Airlines (CAL) to discuss the possibility of cooperation between the airlines from a business operations standpoint.
He has since disclosed that the collaboration could relieve LIAT from some of their external expenses and having those work done locally.
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