Antigua and Barbuda Prime Minister Gaston Browne says he remains optimistic that the new inter-regional airline, LIAT 2020 begin servicing the routes in the Caribbean within the next two months.
Browne, who is attending the 46th regular meeting of CARICOM leaders here, told the Caribbean Media Corporation (CMC) that “significant progress” has been made towards the launch of the airline that is being formed in partnership with Air Peace, a private Nigerian airline founded in 2013.
The new airline will replace LIAT (1974) Limited that was first established in Montserrat in 1956 but folded last month following increased debt and the economic impact of the COVID-19 pandemic. It was owned by the governments of Antigua and Barbuda, Barbados, Dominica and St Vincent and the Grenadines.
Browne told CMC that the other shareholding governments had agreed to allow Antigua and Barbuda to purchase the three aircraft “and we will be investing in the region of about US$25 million in the new initiative.
“Air Peace, on the other hand will be putting in close to US$65 million, so between US$80 and US$90 million will be invested in the project. We expect to have LIAT 2020 operational within the next 60 days assuming that we would have obtained the operating certificate within a matter of weeks.”
Browne said Air Peace is also making arrangements to send three Embraer 145 charter jets that should be arriving in Antigua and Barbuda within the next two weeks.
He said Antigua and Barbuda is also making available a headquarters building for the airline, describing the whole initiative “as a very significant investment.
“It shows the commitment of Antigua and Barbuda to regional connectivity and I am hoping that this entity will help us to address regional connectivity,” he said, adding that Air Peace has already indicated a willingness to send additional aircraft to the Caribbean “if the demand is such that there is a requirement for additional aircraft.
“From all indications Air Peace will be a great private sector partner and will bring significant expertise in terms of management of LIAT 2020 and to ensure that we can operate an airline, LIAT 2020, that will be sustainable, profitable”.
Asked whether any regional country has shown an interest in becoming a shareholder in the new initiative, Prime Minister Browne told CMC “well, not at this point.
“I think we can start with about six aircraft and Air Peace has promised a seventh one which has a capacity of 125 seats. So all indications are the partnership with Air Peace is a strong one.
“In as much as we have no objections to other Caribbean countries joining us, I am pretty sure we can move forward with the assets we have to date,” Browne told CMC.
The issue of regional transportation was among matters discussed on the first full day of deliberations by regional leaders.
A statement issued by the Trinidad and Tobago government noted that maritime transportation, specifically the imminent launch of an inter-regional cargo ferry that will operate the Trinidad and Tobago, Barbados, and Guyana routes had been discussed.
It is expected that Suriname will be added to the ferry’s route.
The statement quoted Prime Minister Dr Keith Rowley as saying that he is pleased with the level of interest generated by the decision to launch the ferry and assured that Port of Spain is committed to ensuring the commercial preparatory work is completed.
Rowley said while the Trinidad and Tobago government will facilitate the incubation of the project, it is hoped that the private sector will play an integral role in the expansion of the ferry service.
