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[EN] LIAT encerra as operações

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Uma das companhias mais antigas e tradicionais do Caribe, a LIAT, anunciou o encerramento das operações.

A LIAT é uma das poucas empresas aéreas que são mantidas por um consórcio de governos, no caso vários países caribenhos pequenos.

Entretanto, nos últimos anos a LIAT vinha com diversos problemas financeiros, a COVID-19 e a queda do turismo foram a pá-de-cal da empresa. A proposta agora é a formação de uma nova empresa aérea livre de dívidas.

LIAT Liquidation Announced

LIAT Liquidation Announced
 

MIAMI – Gaston Browne, Prime Minister of Antigua and Barbuda, has announced that LIAT will enter liquidation and a new airline will take its place.

Speaking on local radio, Browne said that COVID-19 had not helped the Airline’s financial state.

The PM stated that “COVID would have actually, let’s say increased the losses exponentially, so whereas in all of 2019 LIAT made a loss of about EC$12 million, that was within the means of the shareholder governments to subsidize.”

He appears to imply that the more significant losses were too much for the shareholders and governments to swallow.

The Airline was founded in 1956 by Sir Frank Delisle using a single Piper Apache flying between Antigua and Montserrat.

ATR_72-600_LIAT_LIA_V2-LIA_-_MSN_1077_93

GETTING A NEW OPERATION UP AND RUNNING


Browne is concerned that the region cannot see the area continuing without an air link, but does admit any new airline would require both public and private capital.

Browne does want to get a new operation going quickly, comparing today’s news to 1974 “when LIAT was collapsed, my understanding is that it took a day to start the operation of a new entity,” he said.”

“It may be a little more difficult to get it done within 24 hours, and I do understand that there are a number of stakeholders that we have to satisfy, especially creditors and I believe that we could do a work out with the various creditors and to literally get some arrangement in which they can accept that we are not conveniently closing LIAT 1974 Ltd. The governments cannot go any further with it.”

liat.-1-1024x768.jpg
LIAT ATR PTP aircraft. Wiki Commons.

NOT ENOUGH ASSETS


The primary concern is that LIAT doesn’t own enough assets to satisfy the creditors. Its fleet of ten ATR, five ATR 42-600, and five ATR 72-600, is mostly not owned by the Airline, with LIAT only owning three of its aircraft.

The aircraft not owned by the carrier would be “charged to the Caribbean Development Bank,” meaning the Airline would have very few assets for liquidation. The lack of assets will affect severance packages and liabilities to staff alongside creditors. Browne says their positions on the issue will require negotiation.

Interestingly, Browne doesn’t want the new Airline to move away from the LIAT name. He said “LIAT is a Caribbean institution built by Caribbean people of which we should be proud.”

LIAT_ATR_42-600-1024x768.jpg
LIAT ATR 42-600. Wiki Commons.

A LEANER RETURN FOR A NEW AIRLINE


He went on to cite examples of institutions in the US in the aviation industry, including American Airlines, which “have gone belly-up many times over. They never discontinued the name American Airlines. Americans are proud to support the name American Airlines, but whereas they have their Chapter 11 protection, we don’t have that in our laws.”

While a new airline has the potential to re-employ some of those who are out of work due to the liquidation, Browne did say a refreshed operation would be far leaner; as a result, not everyone could be re-employed into the new Airline.

Browne closes off saying, “if you are going to have a new entity that is scaled down, that is viable, that is efficient, that can meet the connectivity needs of the Caribbean people, then clearly that has to be the option that we pursue.”

https://airwaysmag.com/airlines/liat-liquidation-announced/

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Que pena!

Capaz da Caribbean Airlines ocupar o lugar dela. Se bem que, em tempos de pandemia...

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a liat está mal das perns há muito tempo

porém pelo que eu lia os países mantinha a empresa viva porque era um serviço essencial para manter a conexão entre as ilhas

vamos ver  o que vão fazer se era assim tão essencial....

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Time coming to replace LIAT with new carrier - Antiguan PM

Given perennial losses worsened by the COVID-19 crisis, pan-Caribbean carrier LIAT (LI, Antigua) will likely be closed during an upcoming shareholders vote.

“From all indication, LIAT will be liquidated,” Barbados Today quoted the Prime Minister of Antigua and Barbuda, Gaston Browne, as telling local Antiguan radio this week.

“COVID would have actually, let’s say, increased the losses exponentially, so whereas in all of 2019, LIAT made a loss of about XCD12 million Eastern Caribbean dollars (USD4.44 million), that was within the means of the shareholder governments to subsidize,” Browne said.

With most Caribbean island states having closed their respective borders to international commercial traffic, LIAT’s operations have been severely curtailed. To make matters worse, it has still had to make leasing payments on two of its five ATR42-600s and all five of its ATR72-600s.

“You would have found that since COVID, the planes have been grounded, they have to pay the lease payments and they are not getting any revenue,” he added.

LIAT’s shareholders include 11 Caribbean states of which Barbados, Antigua & Barbuda, Dominica, and St. Vincent & the Grenadines are the largest while the remainder - Guyana, Jamaica, St. Kitts & Nevis, Montserrat, St. Lucia, Trinidad & Tobago, and Grenada - holds minority stakes alongside various banks and labour unions.

Browne said that during an upcoming shareholders meeting, while a vote would have to be taken in favour of winding down the airline, a similar one - albeit focussing on establishing a new replacement carrier - would have to follow shortly after to ensure connectivity among the islands.

“A decision will have to be made to collapse it and then maybe the countries within the region will have to come together to form a new entity,” Browne added. “Back in 1974, when LIAT 1974 Ltd was collapsed, my understanding is that it took a day to start the operation of a new entity.”

“It may be a little more difficult to get it done within 24 hours, and I do understand that there are a number of stakeholders that we have to satisfy, especially creditors, and I believe that we could do a work out with the various creditors and to literally get some arrangement in which they can accept that we are not conveniently closing LIAT 1974 Ltd. The governments cannot go any further with it.”

Browne conceded that creditors, which include staff and lessors, among others, would have to accept that their claims will have to be reduced if a new carrier is to be borne.

“And these creditors, including the staff of LIAT, have to understand that there will have to be some level of cooperation to include possibly some cuts on their liabilities in order to facilitate the creation of a new, viable and sustainable entity,” he said.

“LIAT only owns three planes [ATR42-600s] and those planes are charged to the Caribbean Development Bank, so clearly they have a superior claim, and after they would have covered their claim, there will be hardly any assets available to liquidate severance and other liabilities to staff and other creditors, so there has to be a negotiated position.”

“The governments won’t be bandits and just walk away from the staff. They will have to pay some form of compassionate payments to assist them. But they have to understand that they are legally vulnerable and that they have to look at the bigger picture and to cooperate, not to become litigious and to prevent the creation of a new LIAT.”

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On 30/06/2020 at 14:00, Hirondelle said:

Que pena!

Capaz da Caribbean Airlines ocupar o lugar dela. Se bem que, em tempos de pandemia...

Tem a Air Antilles tbm que tá crescendo, já já suprem a finada.

Já dizia um amigo meu: o coronga veio pra arrebatar muitas almas penadas do mundo dos negócios...

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