Committed to LIAT

Prime Minister the Rt. Hon. Freundel Stuart is defending Government’s decision to continue to support regional carrier LIAT and says they are committed to addressing its weaknesses, so that it become stronger and more efficient.

 

Speaking in the Lower House yesterday morning, he argued that had there been no LIAT, this region could not have been held together as it has been over the last 60 years. While admitting that LIAT should be run more efficiently, the Prime Minister said in spite of its financial challenges, the company has been able to outlast a number of competitors and can boasts of a strong safety record that is second to none.

 

He acknowledged that the airline has not been profitable, but he maintained that his Government, like others across the region, is committed to the development and deepening of regional integration and considers LIAT necessary to achieving that. He bolstered the point as he noted that LIAT moves people throughout 18 destinations. He added that of the 558 flights the airline operates per week, 112 originate from the Grantley Adams International Airport (GAIA). Last year, he said, the airline moved over 700,000 people across the destinations it services.

 

His comments came as he noted that the total number of LIAT flights per week out of Barbados accounts for 52 per cent of all flights out of the GAIA and 20 per cent of the airline’s total passenger revenue. Additionally, he said LIAT facilitated US $145 million in incoming tourism expenditure to the local economy, and so he said its importance to Barbados cannot be overstated.

 

“We’ve propped up American Airlines; we’ve propped up extra regional carriers to bring tourists here from all over the place. What can be wrong with trying to prop up our own regional airline?” he queried.

 

Touching more on the viability of the company, he revealed that at the last shareholders meeting, it was disclosed that the projected loss for 2016 is expected to be just $9.2 million. This is down, he said, from in excess of $55 million in 2015 and is due to interventions from the management and the shareholders.

 

PM Stuart also took the opportunity to respond to Opposition Member of Parliament, Ronald Toppin’s concerns that the GAIA does not have category one status yet. During his presentation, Toppin said that while there have been calls for LIAT to move its base of operations to Barbados, this is not possible given that the airport does not have category one status which he said would prevent a Barbados registered airline from flying to United States jurisdictions.

 

In response Prime Minister Stuart explained that attaining such status is no easy task, a fact, he said, that the Opposition can attest to as they were unable to achieve it during their 14 years in office. Nevertheless, the country’s leader said his Government is working to achieve the international classification in the near future, and to meet the requirements that must be satisfied. (JRT)