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LIAT to cease operations on January 24

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The court-appointed administrator for the cash-strapped regional airline, LIAT, Cleveland Seaforth, says the airline will wind up its operations in its current form on January 24 this year.

In a letter to staff outlining the latest position regarding the Antigua-based LIAT (1974) Ltd  on Thursday, Seaforth wrote “after careful consideration and evaluation of the present operations, a decision has been taken by the court-appointed Administrator to permanently cease all commercial flying operations as of close of business on January 24, 2024.

“As a result of the foregoing, you are hereby notified that your employment with LIAT (1974) Limited (in administration) will be made redundant effective February 4, 2024.”

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The move is expected to result in more than 90 employees being made redundant without any payment and a promise that obligations will be met.

The airline is owned by the governments of Antigua and Barbuda, Barbados, Dominica and St Vincent and the Grenadines and during the presentation of his country’s national budget last month, Antigua and Barbuda Prime Minister Gaston Browne said his government had embraced the responsibility to restructure and resurrect  LIAT, “with a vision of returning the airline to the regional skies”.

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Browne said the airline, which has been under administration since July 24, 2020, “has long been an essential thread in the fabric of Caribbean connectivity.”

LIAT, prior to entering into administration had been servicing several regional destinations and has since scaled down its operations and is now servicing Anguilla, Antigua, Barbados, Dominica, Guyana, Grenada, Guadeloupe, Martinique, Puerto Rico, St Kitts, St Lucia and St Maarten.

“In 2023, despite hurdles, including unserviceable aircraft, unresolved issues for former workers, financial constraints, staff attrition, and disruptions caused by the hurricane season; LIAT 1974 Ltd operated a limited schedule, ensuring vital connectivity across destinations with 167 dedicated staff,” Browne said of the airline.

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Browne said that the Barbados-based Caribbean Development Bank  (CDB) will play a critical role in solidifying the arrangement among the governments, adding that this will set the stage for finalising the arrangement with Air Peace, a private Nigerian airline founded in 2013, “so that LIAT 2020 can begin operations, thereby securing a promising future for regional travel.”.

Browne said that in 2024, the Antigua and Barbuda government will spend an estimated EC$30 million to “ensure LIAT 2020 Ltd has all the aircraft needed and appropriate maintenance and operational arrangements are in place for the safe, reliable, and efficient delivery of service to the people of the region.”

In his letter Seaforth told the staff the company was not in a position to make any severance payments at this stage, but indicated that it would not be shying away from its obligations to them on severance, vacation pay, retroactive pay and any outstanding salaries.

“The company recognises its obligation as it relates to any of the [aforementioned] applicable entitlements, which will be provided to you under separate cover within 45 days of this letter after the respective computations have been completed.

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“The payment of any indebtedness to you cannot be made at this time. However, every effort will be made by the Administrator to secure the best outcome in respect of the indebtedness to all employees in accordance with the company’s legal and contractual requirements,” Seaforth wrote, thanking the workers for their “valuable contribution” to LIAT (1974) Limited which resumed flying operations on November 1, 2020.

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REQUEST FOR EXPRESSIONS OF INTEREST

(CONSULTING SERVICES – INDIVIDUAL SELECTION)

 

OECS MSME Guarantee Facility Project

Loan No.: IDA-62670, IDA-62660, IDA-62640, IBRD-88830, IDA-62650

Assignment Title: Senior Operating Officer (SOO)

Reference No. KN-ECPCGC-207852-CS-INDV

 

The Governments of Antigua and Barbuda, Commonwealth of Dominica, Grenada, St. Lucia and St. Vincent and the Grenadines have received financing in the amount of US$10 million equivalent from the World Bank towards the cost of establishing a partial credit guarantee scheme, and they intend to apply part of the proceeds to payments for goods, and consulting services to be procured under this project. 

The consultant will serve as the “Senior Operating Officer (SOO)” for the ECPCGC and should possess extensive knowledge of MSME lending with some direct experience lending to Micro, small and medium-sized businesses, knowledge of the internal control processes necessary for a lending operation and the ability to design and implement risk mitigation procedures. The ideal candidate should possess an Undergraduate Degree from a reputable college or university, preferably in Business, Accounting, Banking or related field, with a minimum of 5 years’ experience in lending, inclusive of MSME lending. The initial employment period will be for two years on a contractual basis. Renewal of the contract will be subject to a performance evaluation at the end of the contractual period. The assignment is expected to begin on September 30th, 2021.  The consultant will report directly to the Chief Executive Officer of the ECPCGC.

The detailed Terms of Reference (TOR) for the assignment can be viewed by following the attached link below. 

 

https://bit.ly/3iVannm

 

The Eastern Caribbean Partial Credit Guarantee Corporation (ECPCGC) now invites eligible “Consultants” to indicate their interest in providing the Services. Interested Consultants should provide information demonstrating that they have:

  • An Undergraduate Degree from a reputable college or university, preferably in Business, Finance, Banking or related field; and
  • Minimum of 5 years’ experience in MSME lending. Applicants should also have:
  • The ability to design and implement risk management procedures 
  • Extensive knowledge of MSME lending with some direct experience lending to small and medium-sized businesses
  • Extensive knowledge of MSME banking operations
  • Knowledge of the internal controls necessary for a lending operation and the ability to design and implement risk management procedures
  • Experience developing and presenting information in public, including responding to questions in real-time
  • Experience lending to MSMEs located in the ECCU
  • Knowledge of marketing and communicating with the MSME sector
  • Ability to draft procedures to be used in a lending operation
  • Familiarity with the mechanics of a loan guarantee program
  • Exceptional written, oral, interpersonal, and presentation skills, and
  • Proficiency in the use of Microsoft Office suite.

The attention of interested Individual Consultants is drawn to Section III, Paragraphs 3.14, 3.16, and 3.17 of the World Bank’s Procurement Regulations for IPF Borrowers July 2016, [revised November 2017] (“Procurement Regulations”), setting forth the World Bank’s policy on conflict of interest. A Consultant will be selected in accordance with the Approved Selection Method for Individual Consultants set out in the clause 7.34 of the World Bank Procurement Regulations for IPF Borrowers. 

 

Further information can be obtained at the address below during office hours 0800 to 1700 hours:

Eastern Caribbean Partial Credit Guarantee Corporation

Brid Rock, Basseterre,

St. Kitts.

Expressions of interest must be delivered in a written form by e-mail by August 11th, 2021, to [email protected]

 

For further information, please contact:

Carmen Gomez-Trigg                                                            Bernard Thomas

Chief Executive Officer                                                          Chief Financial Officer

Tel: 868-620-8144                                                                  Tel: 869-765-2385

Email: [email protected]                                          [email protected]