Bridgetown, Barbados – January 7, 2024
In a significant development, LIAT (1974) Ltd, the iconic island-hopping airline that has been a staple of Caribbean air travel for 67 years, is set to wind up its current operations on January 24, 2024. This announcement came from the court-appointed administrator, Cleveland Seaforth, leaving more than 90 employees uncertain about their future.
LIAT, originally Leeward Islands Air Transport, had resumed flying operations on November 1, 2020, after facing a collapse in 2020. The latest decision to cease all commercial flying operations marks the end of an era, impacting employees and leaving the Caribbean air travel landscape in flux.
The letter from Seaforth, dated January 5, 2024, notified employees that their employment with LIAT (1974) Ltd would be made redundant effective February 4, 2024. Unfortunately, the notice also mentioned that the company was not in a position to make any severance payments at this stage. However, Seaforth assured employees that the company recognized its obligations and would provide details on severance, vacation pay, retroactive pay, and any outstanding salaries within 45 days.
While the majority of LIAT’s employees will be sent home without payment, a few will remain to handle the company’s transition and preparations for its replacement, the proposed LIAT (2020) Limited.
One Barbados-based LIAT engineer, Francis Ifill, expressed his optimism about being eligible for a severance payment. He welcomed the decision to cease operations, acknowledging that the airline had run its course and faced inevitable closure. Ifill, along with other former employees, hopes to receive the severance payments they are owed.
Captain Neil Cave, a former LIAT pilot, emphasized the challenges faced by employees, including issues with promised bonds and the uncertainty surrounding their financial settlements. He highlighted the need for clarity and resolution as employees negotiate with creditors and attempt to move forward.
LIAT’s demise has been a prolonged process, with the airline entering administration in July 2020, facing debt challenges and the impact of the COVID-19 pandemic. The Antigua-based carrier’s liquidation and the formation of a new carrier, LIAT (2020) Limited, signify a new chapter in Caribbean aviation.
As the affected employees grapple with the aftermath of LIAT’s closure, questions remain about the region’s air travel landscape and the fate of the proposed LIAT (2020) Limited.
One Comment
Its so sad LIAT is folding and winding up. I first flew LIAT in 1985 from St. Lucia Castries to Canefield airport Dominica….it was a pleasant experience being my first trip to Dominica. This could have a painful impact on tourists to the Leeward Islands. I pray there’s contingency in place to ameliorate the imbroglio…..