Grenada Broadcasting Network

22nd June 2024

  

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Grenada is being asked to contribute 1.3 million EC dollars to cash strapped LIAT.

This as the shareholder governments of struggling regional carrier LIAT met in Barbados on Monday along with the airline’s management and the trade unions representing its employees, to discuss the latest crisis facing the airline.

The meeting comes as eight capitals have been asked to contribute a total of US$5.4 million in emergency funding need, to keep LIAT’s planes in the sky.

At the same time, 11 destinations have been given until Friday, March 15, to respond to the airline’s minimal revenue guarantee (MRG) proposals.

According to regional media reports, Chair of LIAT’s shareholder governments, Prime Minister of St. Vincent and the Grenadines (SVG), Ralph Gonsalves, told the Vincentian Parliament on Monday ,that five countries — SVG, Barbados, Antigua and Barbuda, and Dominican Republic — the other major shareholders –along with Grenada, have agreed to contribute to the US$5.4 million.

Of the eight countries, Grenada, which has 35 LIAT departures per week, is being asked to contribute US$487,113.

Gonsalves said these five nations constitute the “A Group”.

Monday’s ministerial statement came on the heels of a meeting in St. Vincent on Saturday of Gonsalves, and his Antigua and Barbuda and Barbados counterparts, Gaston Browne and Mia Mottley.

He told lawmakers that several other countries serviced by LIAT — including Trinidad and Tobago — are not included in the request because they have opposed, up front, putting in any emergency funding into the ailing airline.

Caribbean Airlines, the national airline of Trinidad and Tobago, is scheduled to meet with LIAT regarding functional cooperation between both carriers, Gonsalves added during the Monday sitting.

He added that, it is likely that a few flights may be cut if the government is not prepared to fund them with a guarantee.

Grenada has until Friday to respond to LIAT’s proposal.

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