Antigua and Barbuda Prime Minister Gaston Browne has suggested the country may eventually become the majority owner of LIAT 2020 (5L, Antigua), criticising the current valuation method that gives Air Peace Caribbean (APCL) a 70% stake, leaving the country with only 30%, Antigua News Room reports.
Browne has reportedly argued that the valuation overinflated the worth of two E145s - 5N-BVD (msn 145199) and 5N-BXG (msn 145379) - provided by Air Peace (P4, Lagos), estimating them at USD5 million each, which he believes is unrealistic.
He also pointed out that Antigua and Barbuda had contributed valuable airport real estate assets, which he claimed were worth more than the planes that Air Peace had contributed. Browne called for a thorough reassessment of the valuation to ensure fairness and strengthen Antigua and Barbuda's position in the partnership.
"What they did was calculate cash flows for ten years down the road, effectively inflating each plane’s worth well beyond its actual value," he protested. "I told them, ‘What kind of madness is that? Value the assets at market price - if it’s USD5 million, then it’s USD5 million." He added: "We’ve provided a building for LIAT that alone likely holds more value than the two planes Air Peace has put in so far."
Browne also raised concerns about the lack of tangible assets in the new LIAT 2020. "So if LIAT 2020 doesn’t own assets, what happens if things go bad? What happens to the staff and the airline’s future? We can’t leave them with nothing," he exclaimed. He also responded to concerns from a technical committee about the risk of contributing land on a freehold basis, insisting that the government’s priority is to protect both its assets and the airline's workforce.
LIAT 2020 is a joint venture between APCL and the Antigua and Barbuda government. APCL is a separate entity from Air Peace Nigeria and is registered in Antigua and Barbuda. It has been at pains to distance itself from Air Peace CEO Allan Onyema who faces arrest and an indictment in the US for obstruction of justice for allegedly submitting false documents to terminate a federal investigation that resulted in charges of bank fraud and money laundering in 2019.
