BRIDGETOWN, Barbados (CMC)— Prime Minister of Antigua Gaston Browne is predicting “significant staff cuts” in a new reorganisational plan the country says will bring about a far leaner LIAT, one that will run exclusively on commercial terms and one that is expected to make a profit.

“Routes that are unprofitable, if their governments would like LIAT to operate those routes then they will have to pay some guarantee,” Browne said.                              

 The PM told CMC that the reorganised LIAT (I974) limited would be different from a restructured entity in that it is restructuring to sustain debts but not having deep cuts.                                                          

The Barbados and St Vincent and the Grenadines governments have agreed to sell their shares in the cash-strapped regional airline. The other shareholder, Dominica, said it would support the reorganisational plan once it has been finetuned.                                                  

Under the plan, an administrator would be appointed as the sole representative of the LIAT estate. All decisions involving the affairs of LIAT would be taken exclusively by the administrator and not the directors, or shareholders.

The main responsibility of the administrator would be to reorganise the company, by cutting liabilities and realigning expenses. The Administrator would have full powers to negotiate terms with creditors, including agreement to reduce sums payable.

“In a reorganised LIAT, creditors will be asked to take a cut up to 100 per cent in some instances, but on average about 50 per cent. The staff, we expect, a 50 per cent reduction in the staff liabilities because if they go to liquidation they will be lucky to get 10 per cent,”

Browne said.                                                                                

He added that even though the plan is to sell the three planes owned by Caribbean Development Bank, LIAT has seven other planes on the ground here “which are leased planes and we will get on to the lessors and enter into some new arrangement with them to continue to lease several of the planes so that LIAT could operate and we are hoping that LIAT could be back in the air within 60 to 90 days”.