Grenada may lease an aircraft by year-end to alleviate air connectivity problems in the West Indies since LIAT (Antigua and Barbuda) (Antigua) went into administration, says the island's new prime minister, Dickon Mitchell.
Interviewed on WPG 10 television channel to mark his first 100 days in office, he said resolving the lack of air accessibility was a priority for his new administration. "We have to improve regional air travel," he said, adding he had had several discussions with other Caribbean leaders about this.
"I have made it quite clear: we have to put money, if not into LIAT 2020 (5L, Antigua), if not interCaribbean Airways (JY, Providenciales), then some other vehicle that is prepared to fly; it's as simple as that. The hope is that we can get all the countries within the region to contribute, whether it's debt or equity, to lease or buy the planes and get the planes flying. It's as simple as that. As far as I'm concerned, if by October or November, we don't have an arrangement …then it means if Grenada has to go and lease the planes so that we can fly between Grenada, Barbados, and Trinidad and Tobago, we will have to do so. Because the truth is, you can't get to Trinidad," he said.
Still, Mitchell said he would prefer not to have to go it alone. "I'd prefer not to because I think it certainly is in the overall interest for all of us to do it together, for obvious reasons. I'm optimistic it will not get to that." He believed all regional leaders recognised the problem. "I don't think we have a choice but to bite the bullet," he added.
He said the collapse of LIAT and the impact on regional air travel was demonstrable. "It's proven beyond a reasonable doubt in my mind that you can't view air travel, certainly in the context of small islands, purely from a profit-making perspective," he remarked.
Asked if the other Caribbean leaders were on the same page, he said: "I think they are. It's just a question of how we operationalise the entity, whether we go with LIAT 2020 and support that...that obviously requires the cooperation of [Antigua and Barbuda] Prime Minister [Gaston] Browne, or whether we look at an entity like interCaribbean which is already there. I'm certainly prepared to have discussions with them on how we can support them provided they can give us the airlift we want, or alternatively, we look at a third option. My view would be to support those who have entered the market for us and have taken the risk; I think it would be only fair to support them."
Mitchell gave his commitment to implementing his plans, remarking that getting things done was the biggest challenge his government faced, and lack of implementation of policies had been the biggest impediment in the island nation over the past 20 years.
According to Loop News Caribbean, regional leaders met in August 2022 to discuss concerns that regional and international flights had become difficult to access and expensive. At the time, Mitchell said it had been agreed to appoint a consultant to advise regional governments on addressing the airlift deficit.
At a summit in Suriname in July 2022, Caribbean Community (CARICOM) leaders agreed on a new Multilateral Air Services Agreement (MASA) that will allow for a new framework for air transport in the region.
LIAT entered court-appointed administration in July 2020 after a high court in Antigua and Barbuda granted a petition for the cash-strapped pan-Caribbean carrier's reorganisation. The carrier is owned by the governments of Antigua and Barbuda, Barbados, Dominica, St Vincent and the Grenadines (SVG).
In August 2022, the shareholding governments resolved to liquidate the debt-ridden company LIAT and transfer its assets to the newco, LIAT 2020.
The oldco, known legally as LIAT (1974) Ltd., continues to operate three ATR42-600s. It holds both an Antiguan Air Operator's Certificate (AOC) and EU Third Country Operator authorisation, necessary for flights to French and Dutch territories in the Caribbean. It also holds an exemption to serve the US, although granted temporarily and currently due to expire on November 5, 2022.