(OBSERVER)St. Vincent and the Grenadines Prime Minister Dr Ralph Gonsalves has proposed that a new regional airline currently under discussion be based in his country.
Last week Gonsalves publicly lent support to ‘LIAT 2020’, a revamped version of the old carrier LIAT initially suggested by Antigua and Barbuda’s Prime Minister Gaston Browne.
LIAT is currently headquartered in Antigua and Barbuda, where Browne has been working on a rescue plan to rejuvenate it and boost intraregional links.
However, the situation took an unexpected turn on Tuesday when Prime Minister Gonsalves, without explicitly mentioning LIAT, announced that he had been provided with a document from the Caribbean Development Bank (CDB) outlining a plan for the financing and operation of a regional airline, which he suggested should be headquartered in St Vincent.
While Gonsalves did not confirm if this new airline would be named LIAT 2020, speculations are rife that significant shareholders are contemplating the creation of an entirely new aviation entity.
The CDB proposal, sent by the bank’s President Dr Hyginus “Gene” Leon, sets out a fresh new partnership. Initial owners of this potential airline could include the governments of OECS nations such as Antigua and Barbuda, Dominica, Grenada, St Lucia, St Kitts and Nevis, Montserrat, Anguilla, and the British Virgin Islands. The CDB would play a consultative role throughout the process.
Dr Gonsalves says he has carefully reviewed the proposal but has not yet disclosed the finer details.
He emphasised the need for further deliberations and announced plans to engage in discussions with the head of the CDB, who hails from St Lucia. Additionally, he revealed intentions to organise a meeting between OECS leaders and the CDB.
The proposal comes at a crucial time. The existing regional carrier, LIAT (1974), faced significant financial and operational challenges before eventually entering administration in July 2020. The airline, owned by the governments of Antigua and Barbuda, Barbados, Dominica, and St Vincent and the Grenadines, succumbed to mounting debts and the adverse impacts of the Covid-19 pandemic. It is currently operating a limited schedule with a vastly diminished workforce.
Dr Gonsalves said if a ballot were taken across the Caribbean region today “there would be a poll against putting money into LIAT”. The stricken carrier rarely made a profit in its decades-long history and was kept afloat by public funds.
Dr Gonsalves highlighted the importance of having a viable regional carrier for islands heavily reliant on tourism. He stressed that this airline should be perceived as a social and economic asset. He underlined the need to learn from LIAT’s downfall and ensure that the new airline operates efficiently and collaboratively with institutions like the Eastern Caribbean Civil Aviation Authority.
The Vincentian leader added that he remains optimistic about the CDB proposal and is determined to pursue it as an option.
Prime Minister Browne declined to comment on the matter.
