LIAT to Cease Operations Leaving Nearly 100 Workers Jobless

LIAT (1974) Ltd, a regional carrier with a rich 67-year history of government ownership in the Caribbean, will bring down its curtains on 24th January, marking the end of an era, reports Barbados Today.

Regrettably, the closure will result in the dismissal of over 90 dedicated employees who, as of now, have not received their rightful payments. Despite this, assurances have been given regarding the company’s commitment to meeting its financial obligations.

A communiqué obtained by Barbados Today, dated Thursday and signed by the court-appointed administrator, Cleveland Seaforth, conveyed this sombre news. While staff layoffs are inevitable, a small cadre of employees will remain to oversee the final tasks aimed at concluding the company’s affairs, a crucial step in transitioning to its proposed successor, LIAT (2020) Limited, as detailed by one of the few remaining employees.

“In light of a comprehensive evaluation of present operations, the court-appointed Administrator has decided to permanently cease all commercial flying operations as of the close of business on 24th January 2024,” reads Seaforth’s letter. He had previously overseen a scaled-down version of LIAT in 2020, which unfortunately collapsed, causing widespread job losses across the region.

The letter further notifies employees that their positions with LIAT (1974) Limited (in administration) will be rendered redundant effective 4th February 2024. While the company is unable to make severance payments at this juncture, Seaforth affirms its commitment to meeting obligations for severance, vacation pay, retroactive pay, and any outstanding salaries.

“The company recognises its obligation regarding any of the aforementioned applicable entitlements, which will be provided to you under separate cover within 45 days of this letter, after the respective computations have been completed,” the letter reassures.

In a bid to revive the struggling airline, Antigua and Barbuda Prime Minister Gaston Browne spearheaded discussions among CARICOM leaders last year to chart the future course of LIAT. Despite Browne’s efforts to reverse the airline’s misfortunes, the impact of COVID-19 led to the liquidation of LIAT in 2020. The subsequent formation of a new entity aimed to maintain vital connections between Caribbean islands.

LIAT, previously owned by the governments of Antigua and Barbuda, Barbados, St Vincent and the Grenadines, and Dominica, was considered crucial for enhanced connectivity in the region. Prime Minister Browne, emphasising its importance, had hoped that LIAT could complement the efforts of Caribbean Airlines based in Trinidad. However, he also acknowledged the presence of “regional competing forces” that seemed determined to witness the demise of LIAT.