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LIAT’s Homecoming

Submitted by Anthony Davis Some 180 workers at regional carrier LIAT are headed for the breadline as the airline struggles to cope with high overhead costs and a projected loss of $29.6 million. Shareholder governments today endorsed the staff cuts – to be introduced on a voluntary basis in the initial stage – as well…

Submitted by Anthony Davis

Some 180 workers at regional carrier LIAT are headed for the breadline as the airline struggles to cope with high overhead costs and a projected loss of $29.6 million. Shareholder governments today endorsed the staff cuts – to be introduced on a voluntary basis in the initial stage – as well as a plan to shift LIAT’s fleet base to Barbados in a bid to rake in more revenue by targeting the southern Caribbean – Barbados Today 13 February 2015

Has Barbados been wrong footed in this LIAT deal? Not long ago Minister of Tourism, Richard Sealy made the comment about Barbados becoming the base for LIAT. Antigua was quick to respond that that would not happen. Sealy seems to have left it at that, because not one word more was said about it. Suddenly we have a meeting of LIAT’s shareholder board, and the majority of the new planes (four) will be based at Grantley Adams International Airport.

Why has Antigua not made a strong case for keeping all of the aircraft there as usual? What has sweetened Antigua’s mouth? Is it possible that Antigua has realized how expensive it is for keeping the whole fleet there? Why was the statement about playing one country against the other made? Was that made to appease Antigua?

If so, appeasement never works.

The big question is: how much of this US$65 million being borrowed from the Caribbean Development Bank (CDB) will Barbados have to pay back as majority shareholder? How much of the BDS$3.7 million for the “working capital” will Barbados have to “find in proportion to its shares”? How much will it cost to run the LIAT base here?  Will Barbados, being the majority shareholder in LIAT, and the country which will be repaying the most of this debt, be able to retain the most of those remaining positions at that airline? Bearing in mind that Minister of Finance, Chris Sinckler, is always reminding us that he has a “cash flow problem”, pray tell me: From where will he get all of this money?

I guess it will come from the NIS Pensions Funds again!

41 responses to “LIAT’s Homecoming”

  1. LIAT’s Homecoming

    […] By David […]

  2. David Avatar
    David

    Prime Minister Gaston Browne did make a public statement yesterday indicating subventions are required from all Caricom countries served by LIAT. This is the only way the financial challenges of LIAT can be systematically resolved.He did not address the point made by the Shareholders that an airline with 8 or 10 planes and served by several hundred employees is unsustainable.

  3. Tudor Avatar
    Tudor

    Browne also according to the 6:30 a.m. news told LIAT’s GM not to make any further staff cuts until the Antigua cabinet had the opportunity to review LIAT’s position. Antigua is most unlikely to agree to moving LIAT headquarters to Barbados as successive Govts have used it to find jobs for their people. Because LIAT is owned by Govts it will always have the type of problems it has experienced over the years, the Aviation business is difficult with Airlines worldwide having financial problems.

    The “rumour” about Mark Maloney replacing Jean Holder as Chairman is interesting but i cannot see Maloney’s management style being acceptable to the other Govt shareholders – interesting days ahead.

    Regarding the comment about Barbados using the NIS funds to meet its financial obligation to LIAT, this Govt has already “borrowed” 70% of the NIS money which contravenes the Barbados Constitution of Govt only being able to utilize 20% of the NIS funds. And the beat goes on…………….

  4. Hamilton Hill Avatar
    Hamilton Hill

    Supposedly this shift is designed to target a more lucrative market. Let’s wait and see how will this redound to the benefit of the country that bears the greatest burden in the mess that LIAT has been its entire existence. He who pays the piper calls the tune. .unless and until the CARI-CLOWNS are involved. We are the only ones that seem to be intimidated by the term Insularity.

  5. fred Avatar
    fred

    Why should the rest of the Caribbean prop up Antiguan Government pork barrel politics?

    I suspect this is the reason why you will find that most Caribbean governments are reticent about putting money into LIAT.

    If the majority of shareholders deem that cuts are needed then how can the Antigua PM countermand the other shareholders?

    Most likely this move is being driven by the lenders, and the move (as I understand it) is not to target a new market but to simply service it’s existing business more efficiently.

  6. Green Monkey Avatar
    Green Monkey

    Ex-LIAT pilot and blogger, Jim Lynch remains unimpressed:

    What in Heaven’s name makes you think that bureaucrats in Barbados are any faster or more efficient than bureaucrats in Antigua? I was born in Barbados, as a charter and airline pilot have travelled almost the entire Caribbean, and I am yet to see a bureaucracy worse than Barbados – and believe it or not Barbados is actually getting WORSE.

    The base problem with LIAT is competence.

    The shareholders do not have a clue about business or aviation, but are deciding its future as if it were a hardware store. The Board – politically appointed by the sharehiolders – do not have a clue about aviation, but are running it from day to day as if it were a hardware store. The management – appointed by the Board – do not have a clue about a fast-running, hip-hopping, active airline like LIAT, but are running it as if it is a small charter company.

    Let me say that again… The base problem with LIAT is competence.

    Shareholders to middle level management are INCOMPETENT when it comes to running almost ANY airline – I cannot speak for their competence in any other field. They have no COMPETENCE in this field, because an airline CANNOT be run like a haberdashery or hardware store.

    (1st response to post at:)
    http://www.caribbeanavenue.com/aviation/viewtopic.php?f=89&t=19264

  7. Bush Tea Avatar
    Bush Tea

    Mark Maloney as chairman of LIAT makes about as much sense as Bjerkhamm on the central bank board. Clearly these are positions that have been purchased by political contributions and the “pet politicians” who have been brought and paid for, have no choice but to embarrass themselves and Barbados.

    Anyone who followed Maloney’s history or any of his public appearances had to see a tactless, arrogant, turd whose only attribute is a mindless devotion to making money with absolutely no concern about any consequences to anyone else.
    Bushie Park
    The Villages project
    The BWA building farce
    The Gas Station at the Villages
    The Cement project

    That a DLP government could be promoting and cozying up with the likes of Maloney and Bjerkham speaks volumes for the levels of idiocy we have seen in the last seven years.

    …then for the BLP to respond by going on holiday from Parliament is the final straw that will sink this ship of brass bowlery.

    At least in St Kitts some members of the misguided government had the balls to take a new stock and to bring and win a vote of no confidence.

  8. David Avatar
    David

    @fred

    Yet LIAT is the choice of airline in the region for the most part.

  9. David Avatar
    David

    @Bushie

    Couldn’t have phrased it any better.

    JAs

  10. Prodigal Son Avatar
    Prodigal Son

    LIAT’s problems are entirely due to poor management.

    Most of the managers are square pegs in round holes and are so entrenched in LIAT that they cannot be moved. They pay themselves excessive salaries and pay no taxes. Airlines stopped serving meals eons ago yet LIAT still has a manager for that drawing a big salary.

    The average Joe would not believe the nonsense that goes on in that airline!

  11. Prodigal Son Avatar
    Prodigal Son

    For a party which always talked about the Barbados Labour Party being the white man party, the DLP has shown what hypocrites they are.

    In all of Barbados, are they no other persons who can get contracts and directorships other than Maloney and Bjerkham? To make that arrogant obnoxious turd Maloney a chairman would surely make him more of a magguffy. I can see him and his cronies flying about the region free as they likes. Can you picture a LIAT employee telling him that he would have to stay back to allow a fare paying passenger the seat? All hell would break out.

    Recently a relative of the CFO was not allowed on a flight because the flight was full and the ignorant CFO, a Bajan, had the person suspended for not allowing her relative to fly in place of a paying customer!

  12. Prodigal Son Avatar
    Prodigal Son

    Bush Tea

    You forget the concrete vats at the Port……………for a dying sugar industry!

  13. old onion bags Avatar
    old onion bags

    Wait bozie…..Me and D sea-cat woman just get back from Carnival…(Bushie eat ya heart out-ya see who calling D shots now LOL)….wait Mark Who?…he got very much clout in the DLP nowadays…all dat elections money, wat wanna tink?…1st he build all DEM empty houses up Coverley, then D $19 Mil concrete tanks dat leak in D Harbour, he mekk Bushie Park race track in record time ….now starr boy Mark captain-in Liat…Money duz talk…can U stop him.

  14. racehrse Avatar
    racehrse

    The Barbados government clowns turned Red Jet into a three ring circus so we could come to this! A more expensive ticket, and horrible customer service. Dump LIAT, and bring back Red Jet!

  15. My Two cents Avatar
    My Two cents

    Liat is one expensive migraine for Barbados and the other shareholders. Browne of Antigua must put up or stfu. The airline cannot trundle along in the Antigua embrace as it’s done with spectacular failure for all these years. If Browne and the notoriously corrupt Antiguans( remember Stanford and the Birds) have the biggest share then its business as usual. If shareholder countries like Barbados and Dominica are pouring more scarce tax payers monies into Liat than Browne then he must step aside , get out the way. Stop holding up progress.

    Don’t understand the Maloney connection he should do a dale Carnegie course or something to upgrade his people skills. It was his brain child to get the business sector to keep the ABC clean and he gets credit for that. Liat is a far cry from de-bushing the ABC.

    Robert Pitcher is the Liat expert who provides comic relief has anyone figured what this man is talking about. He is against every move to make the airline efficient while at same time ranting about its inefficiency. Pitcher shut up . The repositioning of the majority of the fleet to Barbados is economic sense its the hub that creates the most revenue and you have to fish where the fish are.

  16. The Watcher Avatar
    The Watcher

    “LIAT’s problems are entirely due to poor management.

    Most of the managers are square pegs in round holes and are so entrenched in LIAT that they cannot be moved. They pay themselves excessive salaries and pay no taxes”

    Seems like were about to embark on another colossal f-up again with the pending appointment of a another square peg in a round hole or better, relic from the colonial past who is an intelligent as a millipede.
    I’m going to say flat out, I am tired of seeing pale faces, which largely translate to transparent brains in positions like these in this region.
    From the beginning of time till now, I cannot say that these folk have shown value across the entire spectrum. They seem to be well tuned to endowing themselves and their “people” handsomely however.
    So I dont want to see Mark Maloney anywhere else but possibly on trial!
    If LIAT wants to work, it needs a change of culture and practice, not a change of just the cast of clowns that run it!

  17. David Avatar
    David

    Any bets that the government and Opposition of Antigua will fight against this decision as ONE?

  18. Prodigal Son Avatar
    Prodigal Son

    @ Watcher
    “…….Seems like were about to embark on another colossal f-up again with the pending appointment of a another square peg in a round hole or better, relic from the colonial past who is an intelligent as a millipede…………………

    Oh lawd……………..you have me rolling up with laughter………that is a good one!

  19. Prodigal Son Avatar
    Prodigal Son

    Can anyone tell us on BU where this Mark Maloney come from all of a sudden?

    What was he doing before that he has been propelled into such power and importance in this country?

    He is so arrogant, up in your face, condescending, like what I am allowed to do or lump it! I hate to see his face……….boils my blood that these morons that we have for a government have sold out our country to those two white men….just to stay in power. My good Lord!

  20. Gabriel Avatar
    Gabriel

    If LIAT employs 800 staff,600 are in Antigua.If the main hub is moved to Barbados a whole new ball game is in play.Lots of Antigua jobs are lost.Which politician will want to have his next election campaign littered with the loss of several hundred jobs.Whether Bird,Brown,Spencer,not one of them will allow the move to Barbados.
    As for Mark Maloney.LIAT staff only got to stay away sick 4 days a month and his incompetent ass is grass.Anytime the check in staff see Mark Maloney name as a passenger,that aircraft is automatically delayed,until such time as the Barbados fools get the message.You cannot bully airline staff and expect good customer service.You will pay the price every day.LIAT staff don’t carry the name Freundel Stuart,or Christopher Sinckler,or Dennis Kellman,or Michael Lashley,or Richard Sealey.They might be bought and sold by the Maloneys of this world.A bully especially and incompetent bully is appropriately dealt with at the entry level,that is,at the check in counter.He wouldn’t be allowed to climb the aircraft step.

  21. David Avatar
    David

    Didn’t we have a plane or two with mechanical problems yesterday inconveniencing T&T revellers returning home? Are these not new ATR planes?

  22. Gabriel Avatar
    Gabriel

    David
    The moment I heard that news yesterday,I said the reaction to change has started.Evans hinted that services will be outsourced,that means LIAT staff will likely lose their ‘secure’positions as employees of LIAT,and if they are lucky might land a job with the new handling agent.The present ground handling staff in all divisions of the company will now be working in an era of uncertainty and will begin a go slow approach to work.

  23. David Avatar
    David

    It will get rough before improvement is seen.

  24. millertheanunnaki Avatar
    millertheanunnaki

    @ My Two cents February 19, 2015 at 11:06 AM #
    “Don’t understand the Maloney connection he should do a dale Carnegie course or something to upgrade his people skills. It was his brain child to get the business sector to keep the ABC clean and he gets credit for that. Liat is a far cry from de-bushing the ABC.”

    Sorry mate, but where did you get that idea from? That idea of granting private sector businesses the facility to advertise their goods and services along the ABC Main Road in return for sponsorship and financing the cost of de-bushing and maintaining allocated or designated lengths of the verges did NOT come from the arrogant skull of Mark Maloney.

    Such ideas were mooted and promoted for a long, long time even here on BU before Mark ‘Moremoney’ could ever dream of setting up a depot to store imported finished cement ready for packaging.
    Mark is just fortunate enough to have been told of such a proposal languishing in the basket of ideas at MTW where taxpayers’ money can be diverted from the Drainage Unit and other environmental protection programmes provided some kickbacks and cuts come the way of the former Housing Minister and his “where- is my- 5 or -10 %-cut” colleague Mr. Lowe down.

    Mark is No “ideas man” of true entrepreneurial spirit. Just another parasitic State-dependent taxpayers’ funded corrupt business con artist who is prepared to bribe and buy poor-rakey corrupt people from the political class. He is just a lighter ‘coloured’ equivalent of Leroy Greenverbs Parris.

    How come Markus the mongrel can feel so cocksure about investing in a cement bagging venture but can’t risk his money or other private mafia-type money in the Four Seasons restart? Do you really feel the setting up of a city hotel in pissy-ranking shitty smelling Bridgetown would ever get the principals of the Hyatt Hotel chain to ever associate their name with an uncouth low-class jerk like the backra- come-lately Johnny Maloney?

  25. millertheanunnaki Avatar
    millertheanunnaki

    @ Gabriel February 19, 2015 at 4:15 PM
    “Evans hinted that services will be outsourced, that means LIAT staff will likely lose their ‘secure’ positions as employees of LIAT, and if they are lucky might land a job with the new handling agent.”

    A very profound observation you made there.

    LIAT as a business has no future under any arrangement requiring Caricom Governments’ involvement other than as backers of that airline’s financial obligations.

    But I believe your over optimism of LIAT’s management and operations moving to Barbados is a bit premature.
    With the pending loss of the St. Vincent international in transit business the GAIA will need additional activity to justify its pending privatization.
    Do you think the anti-privatization policies as espoused by the current Barbados government- and strenuously promoted by the leading decision-making sloth Fumble- would usher in a new dawn of efficiency for LIAT and facilitate the eventual privatization of the GAIA?

  26. Artaxerxes Avatar
    Artaxerxes

    @ Bush Tea February 19, 2015 at 8:51 AM #

    Mark Maloney as chairman of LIAT makes about as much sense as Bjerkhamm on the central bank board. Clearly these are positions that have been purchased by political contributions and the “pet politicians” who have been brought and paid for, have no choice but to embarrass themselves and Barbados.

    Political patronage at its best Bushie.

    “The term patronage democracy has been used by Kanchan Chandra to describe ‘a democracy in which the state monopolizes access to jobs and services, and in which elected officials have discretion in the implementation of laws allocating the jobs and services at the disposal of the state’ (Chandra, 2004: 6).”

  27. My Two cents Avatar
    My Two cents

    The bacchanal start Yearwood the Antigua aviation Minister disagrees with his boss Browne he is onside with the decision to redistribute LIAT fleet as signed off in Barbados. Whose move next Holder, Browne, Maloney, fat Ralphie? Who? Stay tuned.

  28. David Avatar
    David

    Isn’t Antigua a shareholder government?

    Was the Antigua government not aware of the decision making in Barbados if yes what is PM Browne about?

  29. Artaxerxes Avatar
    Artaxerxes

    @ Gabriel February 19, 2015 at 2:59 PM #

    “If LIAT employs 800 staff,600 are in Antigua. If the main hub is moved to Barbados a whole new ball game is in play. Lots of Antigua jobs are lost. Which politician will want to have his next election campaign littered with the loss of several hundred jobs. Whether Bird, Brown, Spencer, not one of them will allow the move to Barbados.”

    Antigua is supposed to be negotiating the prospects of introducing a new airline into Antigua and many of LIAT’s employees have expressed interest in seeking employment when it’s been established.

    <<<<<<<<<<<<<<<<<<<<<<<<<<<<<>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

    @David February 19, 2015 at 1:12 PM #

    “Any bets that the government and Opposition of Antigua will fight against this decision as ONE?”

    It is being reported in Antigua that the Antiguan government is looking to take over some of Barbados’ shares in an attempt to become the majority shareholder in LIAT. Additionally, approximately 2 weeks ago Antigua’s Minister of Tourism & Civil Aviation, John Maginley, announced that the idea of LIAT moving to Barbados has been out on hold for the time being.

    The following is an excerpt from the February 18, 2015 edition of Antigua’s “Daily Observer”:

    Days after LIAT announced plans to rebase two of its aircraft to Barbados and cut scores of jobs, Prime Minister Gaston Browne has intervened.

    Browne has written to Chairman of LIAT Shareholder Governments, Dr Ralph Gonsalves asking him to stay any further action on the decisions taken at a recent shareholders’ meeting until Cabinet has had an opportunity to meet and discuss the matter.

    In the letter, Browne reminded shareholders of Antigua & Barbuda’s heavy investment in the airline and the economic consequences of any decisions made regarding LIAT.

    “We understand that LIAT is in a very precarious position. But, at the end of the day, our economy is also in a precarious position, and I just want to get all the facts together,” he said in an interview on Tuesday.

    Browne said he would be calling a meeting with the company’s Antiguan directors to get the details of the meeting.

    The prime minister further levelled blame for the current predicament at the former United Progressive Party (UPP) administration for allowing Barbados to inherit majority shares in LIAT, calling it the party’s “single fatal mistake.”

    Browne added that despite the shareholders’ decision, he remained unconvinced that a move to Barbados would solve LIAT’s problems.

  30. Artaxerxes Avatar
    Artaxerxes

    The Hon. Robin Yearwood as the Minister of Public Utilities, Civil Aviation and Transportation. NOT John Maginley

  31. Artaxerxes Avatar
    Artaxerxes

    @David February 19, 2015 at 1:12 PM #

    “Any bets that the government and Opposition of Antigua will fight against this decision as ONE?”

    You are correct David, both the Antiguan government and opposition are against the move.

    Today in parliament, the opposition members said they were fighting Barbados for years against this decision, because they saw the move as one to help rebuild Barbados’ economy at the expense of Antigua’s.

    The government is claiming that LIAT’s board made the decision without the bidding of the Antiguan government. Gaston Browne has placed the blame solely at the feet of former pm Baldwin Spencer, saying he should have never allowed Barbados to buy LIAT’s shares because Antigua was doing well for over 40 years without Barbados being involved.

    Apparently, PM Gaston Browne and former PM Baldwin Spencer are expected to meet tomorrow to further discuss the issue.

  32. The Watcher Avatar
    The Watcher

    @Prodigal Son
    “Oh lawd……………..you have me rolling up with laughter………that is a good one!”
    Glad that you could laugh. I do to sometimes at the utter madness promoted as good and sound governance. Assuming that you, like some others were around for the earlier days of politics in this country, you may recall when politicians had class, spoke with more conviction and could recognize their name in a salt-bread before eating it.
    Those are what we can call “The good old days”

    You like many others based on your comments on this forum, also see the dangers inherent in making a decision of this magnitude and in this direction.
    It seems like people confuse the running of a private company with that of a public one.
    Just because a person is able to run a private company successfully, or what appears to be successfully, does not automatically endow them with the necessary attributes needed to run a public company in the same menner or with the degree of success they ran a private concern.
    I wonder if forensic audits were applied to some of these privately run concerns, and their owners, what would be revealed.
    However, the problem of perception goes much deeper here. When Red Jet comes here and offers LIAT competition we saw the airline become more efficient and better run. All until RedJet met their engineered demise.
    So we are back to a regional monopoly which is again showing signs of bad management.
    What this says to private investors and lending agencies worldwide is that we are a mendicant little society run firmly by wanna-be political oligarchs, and to come here and invest they had better play by those rules, and not by any standards or regulations.
    How is that going to attract Direct Foreign Investment or Foreign Investment in any form. Henceforth, how can Donville Inniss tout the success of that sector when it has been lumbering and lagging consistently behind tourism and sugar, two other useless sectors.
    We, the Barbadian royalty believe that we are so smart and that as long as there is bread on our tables, juice in our refrigerators and a car or two parked outside of a million dollar, cookie-cutter mansion. We just success by these ill-conceived criteria and say proudly that we are “Aye-ok!”
    I am predicting the catastrophic demise of Barbados as an economy and society within 2 to 3 years. Just in time for the next election which I don’t believe will be as smooth and un-eventful as the last one was.
    This country needs a laxative badly, and a very strong and fast acting one

  33. Gabriel Avatar
    Gabriel

    According to Barbados Today,19th February,a survey done by the BCCI has shown that business confidence remains low in Barbados.
    70% of respondents believe not enough is being done to attract foreign investment.Its laughable that 4% thought enougn was being done.Among such is no doubt, Pornville Inniss,hence his kite attack of the CCJ for a seat,no doubt for the current CJ who with all the negative talk of the performance of the local judiciary,can find time to be playing with balloons.What a party this DLP.
    The survey found further that 27% of respondents thought economic recovery will take between 3 to 4 YEARS while 23% thought it will take longer than 4 years.77% thought our national economic performance is a constraint on business while 55% see a decrease in construction a reality.
    We need a miracle to save us from the Dems.When good,intelligent people do not vote,this is what we get for a government.

  34. Justice Bogle Avatar
    Justice Bogle

    We will NEVER fly Liat Airline again
    Feb 23, 2015, 12:15 PM
    We sat in a LIAT Departure Area for 2 days of a 3 day vacation and never made it to our destination.

    My husband & I boarded LIAT 310 out of Trinidad at 5:30am on February 18th for a 3 day vacation to Antigua.

    The flight was delayed due to a technical problem w/ the plane and we were taken off the plane.

    The problem was fixed, we boarded the plane again and flew to the first stop, St. Vincent.

    In St. Vincent, after boarding the St. Vincent passengers the same plane had a technical problem again and we were all taken off the plane.

    We ended up spending the entire day in St. Vincent. All efforts to get re-booked on another flight and get information about our options to fly to another destination to get other connecting flights were met with apathy and complete denial of service.

    They put us up for the night in a hostile and the next morning took us back to the airport and had us stand in line for the same flight, 310, we were booked on the morning before.

    Instead of getting on the first flight out in the morning to Antigua. We were flown to Barbados for a connecting flight at 1:50p to arrive at 3:15p.

    At 12 Noon on Thursday February 19th in the LIAT Departure Area in Barbados we were told our flight to Antigua was delayed and we would not arrive to Antigua until the evening. The

    LIAT agent indicated that they could get us back to Port of Spain before they could get us to Antigua.

    We had multiple times ( 8 ) conveyed to LIAT ticket agents – boarding agents – flight attendants & LIAT supervisors that LIAT was jeopardizing our 3 day vacation in an effort for LIAT to show empathy & provide us Priority boarding.

    LIAT’s response to try & place us on flights to Antigua did not materialize.

    With 2 days out of our 3 day vacation to Antigua spent in LIAT Departure Areas – we cancelled our vacation to cut our losses.

    The Liat agent immediately re-booked us on a flight to Port of Spain and told us he would have our checked luggage retagged.

    At time of another delayed departure we inquired about our checked bag because we had not received the new tag. We were told it would be brought up from customs. We boarded the plane and asked the flight attendant to confirm our bag had been loaded and give us the tag. The flight attendant said the bag had been loaded, but they hadn’t had time to get a tag.

    We arrived in POS, and our bag did not. We filed a missing luggage claim w/ the POS Liat agent. We informed the agent the luggage was originally tagged to go to Antigua and she recorded it on the report.

    The next morning we called the baggage service and was told they would find the bag, give us a call, and deliver to our hotel.

    Saturday morning February 21st, we called Liat baggage service again because we had not heard back and was told they had not located the bag. On a whim we called the customer relations number on an email we had received from an agent regarding our complaint about our failed trip to Antigua. This call was answered by David in Antigua baggage claim.

    “David, do you have a red hard case bag there?”

    “Yes, what’s the name on the bag?”

    “Bogle”

    “Yes, that bag is here. Where is it suppose to be?”

    “Port of Spain”

    “Ok, here’s the new tag number for POS, it will be on flight 309 to POS….”

    We retrieved our bag Saturday night Feb 21st from POS airport. Thank you, David.

    We have never had such a horrible experience with an airline. We will never fly Liat airline again.

  35. James Lynch Avatar
    James Lynch

    LIAT is in a mess, and – whether the shareholders like it or not – it has been in a mess for more than four decades, and at huge taxpayer expense.

    What is the solution? It is not political, that’s for sure. And it is not any of the wild solutions found in “Letters to the Editor” or social media, either.

    LIAT is a highly technical resource which REQUIRES licensed and experienced professionals to run it, not just any random or politically-connected person who is willing to “see what they can do” or who can beg someone to “try a thing”.

    FACT: The only saviour of LIAT can be the shareholders themselves. In my experience the prime ministers listen to nobody, and I cannot believe their “advisors” are suggesting these courses of action.

    Those prime minister-owners of the airline need to put personal ego and island politics aside, face the stark reality and do what should have been done decades ago… treat LIAT as an arms-length corporation, get it OFF their own personal desks, and hand it over to the professionals.

    Shareholders

    As owner-representatives the shareholders should ONLY set the over-all goals of the airline. If run properly and professionally, I believe the various other EC countries would reconsider taking shares of LIAT, but they WILL NOT – and I would strongly suggest they DO NOT – just throw more taxpayer money into the deep and wide money pity that is and has been LIAT for more than 50 years, regardless of the demands and threats from the shareholder chairman.

    Board

    At the next level down, the current Board should be cleared entirely, replaced with properly qualified and experienced respected regionals appointed as directors, who are as intimate with aviation as humanly possible.

    Management

    It is reasonable to assume that this new Board would then find, hire and appoint properly qualified and experienced respected aviation professionals – preferably ‘regionals’ – to the level below them who would run the airline at a profit, or at the very least to break even. Problem solved.

    CHANGE is the operative word. Without change, in its current form LIAT will always be a global joke.

    LIAT’s shareholders do not now demand professionalism and quality but political obedience and mediocrity, they continue to send political appointee hacks to serve in Board and management who know virtually nothing about how to run an airline, and themselves continue to micromanage from afar a fast-changing resource in a technical field and discipline they themselves know nothing about.

    My advice – if the shareholders really want to save LIAT – is for them to get OUT of the board room and management suite, and to REPLACE the Board with qualified people who know the difference between a debit and a credit, prop wash and slipstream, aileron and elevator, rivet and tri-wing. Such people are invariably straightforward, and CANNOT be fooled, brambled, jacked up or played, and who would not tolerate for even a week the ridiculous nonsense that has passed for “management” at LIAT for the last many decades.

    And such change would include the authority to CHANGE the airline to any specific form which is suited to the region, the climate, the airfields, the conditions and the people.

    Globally, executive managers are continually judged by performance, and have no tenure. That is, if they screw up or do not perform, their resignation is demanded by the Board and they are replaced. Same for Board members… if a chairman cannot produce the desired results from the management under his control and he does not replace them to achieve the set targets, he goes out the door too.

    Not so in the Caribbean, apparently. Decade after decade the Board and executive management plod their way through hundred-million-dollar losses after meltdown, after disaster, after catastrophe, after hundred millions lost, and life just returns to “normal”. Nobody gets blamed, nobody goes home, nobody is liable in any way.

    And, by the way, the taxpayers who foot the entire bill for all this fooling around are told they are not entitled to see any of the accounts.

    Let’s be serious and get this straight: Politicians or not, the way real businesses work is that shareholders set the grand overall future target (for LIAT, at the very least, break even). Boards are normally made up of professional, knowledgeable people in the same industry who have the connections and ability to advance the company and with executive management to produce the overall plan to reach that future target, and then execute that plan as professionals.

    And if they cannot perform – or they perform badly – THEY ARE REPLACED.

    Without such CHANGES from amateur bunglers to industry professionals made from the very top of LIAT – and they can still happen, despite all the lightning and thunder – LIAT is doomed, and I forecast will not last much longer.

    Surely, at this point we as taxpayers and passengers have all had and seen – and paid for – enough nonsense.

    If the shareholders of LIAT refuse to get serious and make changes, I beg, on behalf of the poor struggling employees and passengers, set a date two years hence for the closure and SHUT IT DOWN. This sounds drastic, but if given reasonable notice of a shutdown people can make plans for their lives and their travel, entrepreneurs and other airlines can see a way towards starting an airline to serve their countries, and life can go on.

    The alternative is for everyone to arrive at all of the airports across the network early one morning and find the LIAT offices chained shut by the bailiffs. Because no business will wait forever for payment, like their shareholders LIAT cannot pay their bills, and – no matter how much is owned by countries – the airline is still governed by the laws of those countries.

    James “Jim” Lynch
    Caribbean Aviation Consultant

  36. David Avatar
    David

    It appears Barbados’ Maloney has been assigned to increase the bench strength of LIAT, be patient.

  37. Gabriel Avatar
    Gabriel

    @James
    In the recent expose of LIAT, it was said that part of the financial difficulties now experienced was the inability of the airline to find buyers of the Dash 8’s on hand and so the shareholders are stuck with the additional burden associated with existing lease cost on aircraft that require lots of maintenance.
    I have already submitted that LIAT might have been better off continuing with Bombardier rather than going the route of Airbus ATR and all the extra costs associated with purchasing a completely new aircraft type.
    James ,do you have any views on this change of equipment and its effect on the balance sheet?

  38. Artaxerxes Avatar
    Artaxerxes

    I returned from Antigua on Saturday April 11, after spending 1 week there on business [reason being I did not contribute to BU during the past week]. PM Gaston Browne seems to be trying to appease Antiguans by pushing an anti Barbados/St. Vincent agenda in relation to LIAT.

    He also stated that while Barbados has majority shares in the airline, we have not made any significant financial contributions to its maintenance or support. Additionally, as it relates to the recent loan acquired by LIAT to purchase the new ATR aircrafts, Browne said Antigua pays the majority of the loan repayments.

    He has convinced Antiguans he will fire the CEO, buy Barbados’ shares to enable Antigua to become the majority shareholder and not support the establishment of any proposed new airline, since, in his opinion, Barbados seems bent on destroying Antigua’s economy, as job losses will result if a new airline comes on stream.

    Interestingly, the Chinese are building a new VC Bird International Airport next to the old one.

  39. James Lynch Avatar
    James Lynch

    Gabriel, one of the selling points for the ATR was that the new aircraft would come with warranty and for a number of years that ATR would pay the expenses for breakdowns – as opposed to the high maintenance costs on the Dash-8s.

    But I will take this fleet change exercise back to Board level… Brunton proposed and presented to the Board that the ATR-72-600 they bought also used less fuel than the Dash-8s, which in untrue – it uses the same or a fraction more because the engines, while being the same as on the earlier ATR series, are “uprated” to a higher power.

    I will state clearly that if the Board was composed of aviation professionals or at the very least SOME aviation professionals, this bramble of a presentation would not have lasted past the time taken to scribble some numbers on a paper pad, and the shareholders would not have approved a proposed US$100 million fleet change that would REALLY eventually cost closer to US$250 million.

    Would you go to a car dealership, get a $10,000 quote for a new car, and after you buy it find out that you have to pay $1,000 a month for insurance?

    The shareholders, Board Members and management pay no price for being wrong, so screwing up is not a problem. And making decisions can be sloppy, lazy, even indifferent, because it is not their money and they are never disciplined or fired. Ever.

    To “recycle” the Dash-8s – either have them refurbished from frame outwards by Bombardier or one by one to sell them and buy newer models, like car owners do – would have cost a fraction of what the shareholders – you and me, in taxes – will have to pay, and they would not have had to chop up the two Dash-8s whose records went up in smoke in the hangar fire (they can’t be sold without records, but they can be flown – with cargo, if necessary – until they run out of cycles).

    The Dash-8s proved to be hardy, reliable and durable, despite the mounting maintenance costs, and apparently the only REAL reasons for the fleet change were greed for the fat commissions to a Swiss bank account (I won’t be naming any names, but the person did the same not long before before at another airline and is easy to guess) and perhaps an overwhelming desire for the Board to find the airline some fresh new hip clothes and parade around the Caribbean like a bunch of pimps.

    To me it has been literally disgusting that LIAT is such a political football, paid for by our taxes, and we are glibly told by the politicians who represent us that THE ACCOUNTS ARE NONE OF OUR BUSINESS.

    Now I understand that 70% of our NIS – contributions by every person in the island – have been “borrowed” by the same politicians for other purposes and there is no pay-back schedule or planned.

    Hear this LOUD AND CLEAR: Barbados has NO MONEY to pay Barack his $70 million, and Barbados has NO MONEY to save LIAT. When the bailiffs come with the chains and locks, eexpect no final saviour to emerge from the morning darkness, and all the phone calls in the world will not save it. At some point even Dr. Warren Smith at the CDB will have to say “Enough!!”

    Hear this, too… so-called “government money” does not belong to the government or to that private club they call politicians, it belongs to the PEOPLE. I think Fumble, Froon or whatever the heck they call that Jackass will run the country into the ground so far that finally I believe you WILL see a revolution or uprising from the Bajan “sheeple” who have taken all the blows so quietly so far. And yes, even the DLP yard fowls.

  40. David Avatar
    David

    Didn’t Barrack receive is last payment owed last month, finally?

  41. Gabriel Avatar
    Gabriel

    LIAT is a political football where politicians who normally have no idea how to become successful decision makers other than via the misuse and abuse of public funds,can make and execute stupid recommendations emanating from politically appointed boards.I am sure Bombardier would have given LIAT soft terms on the replacing of their aging fleet if they had continued with that supplier so that the burden on the taxpayer would not be as onerous.The airline industry employ highly trained personnel who can make or break the company if they see wanton waste at the top.This type of decision would raise the hackles of pilots,engineers and other operations staff who see these loss making decisions as evidence of the board abusing the retained earnings capacity of the carrier and so,they up the ante for increased wages and conditions of service with the occasional threat of strike at peak periods.
    To be sure the present situation cannot continue.As I see it,LIAT’s future is in the balance given the precarious financial straits in which all these EC states and Barbados are in.Trinidad’s CAL might be the fall back after all.

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