Message to PM Mottley: Why is 747-400 Boeing Being Registered Under Barbados Colours in the Dark?

Submitted by xxxxxxxx

Why is there a big white end of life Boeing 747- 400 aircraft, capable of carrying 490 passengers or troops 7,285 nautical miles non stop, sitting at Grantley Adams International Airport for the past month being de-registered from an FAA holding registration of N508BB to a Barbadian registration of 8P-ERI?

Research shows that this is the very same aircraft, serial number 29031 registration number B18208 that was delivered to China Airlines, a Taiwanese airline company in September 1998, and retired from service in October 2017 to long term storage at the California Logistics airport at Victorville (Aircraft Boneyard).

This aircraft was recently de-registered and re-registered as N508BB by AAR corporation in May 2018, and then transferred to a Trust company called Aero Intelligence Inc (Trustee) in April 2019.

This aircraft was then re-painted white, overhauled engines were fitted, and it was ferried from the southern California logistics airport (SCLA) at Victorville California (boneyard) on May 23rd 2019 to Phoenix sky harbor airport (PHX) Arizona, and then Ferried from Phoenix to Argyle International Airport (SVD) in St. Vincent on May 24th 2019, by Canadian company Nolinor Aviation.

It arrived in St. Vincent to great fan fare, to be delivered into the waiting arms of fledgeling Vincentian charter airline One Caribbean which is only 2 years old, and only operates a single Beechcraft 1900, 19 seater charter aircraft. Sources say that one of the owners of One Caribbean is the son of Vincentian Prime Minister Dr Ralph Gonsalves.

One Caribbean then sought to de-register and re-register this end of life Boeing 747 aircraft in St. Vincent under the Eastern Caribbean Civil Aviation Authority. However, the ECCAA said they had never registered a Boeing 747 and sought guidance from the US FAA on registration of this aircraft, since this would require oversight and maintenance to be done in accordance with ECCAA regulations.

Capt. Paul Delisle, ECCAA’s flight operations inspector, confirmed that the request to certify the 747-400 was a big step for ECCAA.

Related link:

ECCAA Seeks FAA Guidance over St. Vincent 747-400 Registration Plan

St Vincent’s First Boeing 747- 400 Now Registered In Barbados

He noted that, as the airworthiness regulator for six member nations of the English-language Organisation of Eastern Caribbean States (Antigua and Barbuda, Dominica, Grenada, Saint Kitts and Nevis, Saint Lucia, and St Vincent), ECCAA today has oversight of six AOCs, 14 airports and just 41 aircraft. Six are helicopters—but none of the aircraft is a large commercial jet.

Delisle said ECCAA was taking a two-step approach to re-registering the One Caribbean 747-400. First, “We were discussing the whole plan with the FAA,” which originally awarded the Boeing 747-400 its type certification, he said. “We wanted concurrence” with the FAA on all matters relating to N508BB’s potential SVG certification.

One reason is that, 21 years ago, ECCAA’s predecessor certified a McDonnell Douglas DC-10-10 for the Antigua and Barbuda registry, for a company called Skyjet. However, according to Delisle, the aircraft actually was based in Belgium, from where it was leased to various carriers throughout the world.

The FAA took such a dim view of the situation that in 2002 it removed the Eastern Caribbean regulator from its list of approved Category 1 airworthiness authorities. “We had to stop that [Belgium-based] operation to get Category 1 categorization” back, said Delisle. “It’s a sensitive subject.”

It seems that following information received from One Caribbean about the purpose and use of this aircraft, as well as the information received from the FAA regarding the maintenance requirements of this aircraft, the ECCAA is not interested in registering it.

Following this development, we are reliably told that Vincentian Prime Minister Dr. Ralph Gonsalves phoned Barbados Prime Minister Mia Mottley and asked for her help, by having this aircraft registered in Barbados.

Barbadian colors were then painted on it’s tail; and it was ferried under dark of night to Grantley Adams International Airport, where it now sits.

We are reliably informed that Prime Minister Mia Mottley has given instructions to the Director of Civil Aviation to have this aircraft registered on the Barbados aircraft registry, despite objection from the DCA, and that this has now been completed and it is registered as 8P-ERI.

This however poses other serious issues for Barbados. Being a Barbados registered aircraft, it will need to be operated under a Barbadian commercial air carrier with a valid Air Operators Certificate (AOC). There happens to be one such Vincentian owned charter operator in Barbados called Executive air, run by Vincentian John Ackie. On a side note, John Ackie’s brother in law is currently serving time in a US prison for drug smuggling and money laundering. John’s sister still resides in Florida.

We are reliably informed that this aircraft has been licensed under Executive Air’s AOC to be operated by fledgeling Vincentian charter operator One Caribbean, and apparently re-leased to a Dubai company to move passengers and cargo between the UAE, Africa and St. Vincent.

As a Barbadian registered aircraft, this plane will have far less scrutiny than a US, Vincentian, or UAE registered aircraft. It will also require local civil aviation authorities to have oversight and sign off on all maintenance and inspections. It will require an approved maintenance program be put in place, none of which the local authorities in Barbados have experience in, for such a colossus as a Boeing 747-400. We don’t even have a hanger in Barbados large enough to house a 747 for maintenance inspections.

Why is a Dubai company going to such great lengths to conceal the true identity of the operators of this aircraft? If such a company wanted to offer 747 Charter flights between the UAE, Africa and the Caribbean, why not simply lease or purchase one directly and register it in the UAE under the UAE Alpha 6 registration?

Why would a tiny startup Vincentian air charter operator who has only ever operated a 19 seater Beechcraft turboprop aircraft, purchase or lease a near end of life Boeing 747-400 aircraft which can carry 490 people, through a trust company, register it in Barbados through a Barbados based Vincentian owned air charter company’s AOC, only to lease it to a Dubai company to do charters between the UAE, Africa and St. Vincent?

That aircraft can carry 490 people or troops, or thousands of tons of cargo, weapons or drugs over 7200 nautical miles, non-stop.

This Boeing 747-409 would be close to it’s maximum airframe life limit of 20,000 cycles for its age, is extremely uneconomical to operate, will require compliance with an extensive list of service bulletins (SB’s) and airworthiness directives (AD’s)? This type of aircraft is only useful for extremely long flights, moving large numbers of passengers and huge quantities of cargo.

It is an inordinate and uneconomical gas guzzler.

Where would any charter operator find enough passengers in the UAE who want to travel to tiny St.Vincent to justify the cost of owning and operating such a large and expensive aircraft? Are there enough Vincentians anxious to travel to Africa or the middle east each week to fill up 490 seats?

Or will it be used to transport marijuana grown in the Caribbean to far away destinations?

Perhaps it will be used to deliver aircraft parts to Iran who has been using front companies to purchase 747 parts to keep its aging fleet in the air?

Is it really being leased to a Dubai company? Or an Iranian front company posing as a Dubai charter operator?

This is a highly unusual arrangement, and can place Barbados Civil aviation and International Airport in jeopardy of being de-categorized by the FAA, or worse.

Further, FAA records show that Aero Intelligence Inc (Trustee), the owners of N508BB told the FAA that this 747 aircraft was being exported to Antigua and Barbuda, but we now know that it was in fact exported to St. Vincent and not Antigua. Why did they tell the FAA they were exporting this aircraft to Antigua & Barbuda and not St. Vincent? Would this have created a red flag?

Antigua is well known for aviation operators and is the base of regional air carrier LIAT. But St. Vincent has never ever had an aircraft this large land there until now.

What will this plane carry?

Marijuana? Troops? Weapons, drugs, nuclear material? Regional politicians on long expensive business trips to the middle east? aircraft parts or weapons to Iran or other countries?

We sincerely hope that the United States, The International Civil Aviation Organisation and international customs agencies keep a very close eye on this Boeing 747-409 registered in Barbados as 8P-ERI. Who knows what it may be transporting in the future, and to where?

By the way, the middle east is presently on a heightened aviation terror alert. Could Dubai based operatives be planning to use a Barbados registered 747-400 aircraft as a flying bomb in a terror attack against Iran in retaliation for recent attacks on UAE targets? What impact would this have on Barbados if this aircraft is used for such a purpose? How will the Barbados Civil aviation authority have proper oversight of an aircraft being subleased to 3rd parties in St. Vincent or the middle east?

Barbados Civil Aviation Authority should not touch this aircraft with a ten foot pole. They are setting Barbados up for international trouble. If One Caribbean wants to operate or lease this aircraft to a middle eastern company, let them register it in the eastern Caribbean or the middle east.

Barbados should not touch it.

We need some answers about this.

287 thoughts on “Message to PM Mottley: Why is 747-400 Boeing Being Registered Under Barbados Colours in the Dark?

  1. @ David

    Are you suggesting since Barbados ‘jumped ship’ the other regional territories will support Browne?

    If that’s what you mean, insularity is much more of a hindrance to regional unity than anything else I can think of at this time.

    However, despite having a 49.4% shareholding and representing T&T’s 1% share, BGI never really had any say in LIAT’s operations. As you know, Antigua opposed or rejected proposals to improve the airline’s financial and operating efficiency.

    And, based on his pronouncements recently, it seems as though Browne appointed himself as chairman of LIAT’s shareholder countries.

  2. I am not even going to comment on the bad and flawed claim, but how does a murder committed in 2015 and bail granted in 2016 the fault of government, far less the incumbent? A retired journalist yuh. #egofowlism

  3. Let the private aviation companies take care of inter island aviation themselves devoid of any Government interfering. The more the merrier with fierce competition. The only stipulation is that they must put up a guarantee so that when they disappear clients can get their tickets refunded.
    Here is a wild suggestion.
    We all know that when the West Indies cricket team is winning everyone in the Caribbean feels copasetic . Whether you are poor or rich, male or female, young or old, the excitement of the commentators telling us of the fours and sixes that create a winning score gives everyone a warm and fuzzy feeling inside.

    Having said this, I want to suggest that the University of The West Indies starts a cricket academy to groom young talented players in a similar fashion to what Australia did decades ago. This academy should be funded by the Governments. Either through scholarships or directly.

    The West Indies cricket team needs to win again. The older players who were the backbone of the past era are still around and can certainly contribute to the setting up of the said academy. The institution should not only train cricketers but also umpires and commentators. It should have persons who can train the players mentally, physiotherapists, a state of the art gym etc.

    This cricket academy should be based in Barbados!

  4. I am breaking one of my main rules, which is not to become involved in discussions on cricket with Bajans. But here we go. The notion is a cricket academy is going back in time. The Australians first ‘invented’ these academies back in the 1980s, and the most outstanding produce was Shane Warne.
    Following his success, the England and Wales county teams all formed academies with little success. It is a trendy, but flawed model with its origins in the business.
    In the Caribbean we do not need so-called cricket academies, and certainly not under the UWI. It is a bogus solution looking for a problem. What we need to do is return to the model that has served us between the 1920sd and 70s so successfully; our academies then were our schools, from infants to secondary, backed on local players playing in the streets, at clubs and hurriedly arranged games.
    What we can add now is closer coaching, but practice, practice, practice is still the core of an applied sport. We need a system that spots talent early and fast tracks it to the highest standard. In short, we need a West Indian model of cricket, and not an imported one that suits other environments.
    By the way, i the UK there is the same nonsense, what I call the Tony Cozier of way young black people do not play cricket with the enthusiasm of their parents and grand parents generations.
    That holds that the absence of young black people from the game in the UK is because of many other interventions, including football. It is crap and has always been.
    I was once in the company of Cozier and the cricket correspondent of the Daily Mail, Brian Scovell, when he repeated it and I just smiled. It revealed an ignorance of the black British comm8unity.
    The ECB is now looking again at the matter.

  5. @ john2


    The goodly gentleman has an annoying penchant for presenting himself as knowing everything about everything or having more knowledge of any particular field than those individuals who are personally involved.

    However, as it relates to his comments re: “In the Caribbean we do not need so-called cricket academies, and certainly not under the UWI. It is a bogus solution looking for a problem. What we need to do is return to the model that has served us between the 1920s and 70s so successfully; our academies then were our schools, from infants to secondary, backed on local players playing in the streets, at clubs and hurriedly arranged games,…….”

    ………… in all fairness, he has a point.

  6. @Artax
    What changed in cricket in the 70’s?
    Do you remember when Barbados had two opening bats called Greenidge?


    That’s not entirely true.

    In November 2019, a resolution was passed in Antigua & Barbuda’s Parliament, authorizing the government to secure a loan of EC$40M, from the Venezuelan Banco del ALBA, to purchase additional shares in LIAT……. and NOT BGI’s shareholding.

    Browne secured the loan AFTER BGI and ANU failed to reach an agreement relative to the sale of BGI’s shares and Browne subsequently REFUSING to purchasing them for US$44M.






  8. @ NO

    Unfortunately, I don’t know what changed cricket during the 1970s. But, in my opinion, our cricket began to decline during the early 1990s.

    I remember Alvin Greenidge who used to live in Dover.

  9. ICC made rules against the bouncer
    Or batting declined – more basketball being played in the road instead of cricket

    The other teams caught up with us and passed us with the use of Technology to Aud their natural skills

  10. Baje

    They was NEVER a concluded agreement to buy the Barbados shares. Thing were under negotiation.

    U need to read what you post to support you wrong claims

  11. If you WAN to continue with your argument then tell us How much we could have Walker away with

    Surely it was not the $40 million US and you have submit evudence that it wasnt

    Fool !


    Strengthened what point?

    You wrote: “ST JOHN’S – The Government of Antigua and Barbuda has been given the go-ahead to secure a loan of US $15.8 million (approximately EC $40 million) with Banco del ALBA, to purchase additional shares in regional carrier, LIAT. (BARBADOS SHARES).”

    By mentioning “(BARBADOS SHARES)” at the end of the news extract, you’re essentially giving readers the impression the Antiguan government secured the ALBA bank loan for the SPECIFIC PURPOSE of purchasing Barbados’ shareholding in LIAT…..

    ……… when it’s SOLE purpose was to invest DIRECTLY in LIAT…… and NOT to purchase Barbados’ shares.


    In October 2019, Gaston Browne made an announcement saying ANU was NO LONGER INTERESTED in purchasing Barbados’ shares in LIAT and told Mottley his government had received a loan committed of EC$40M from the ALBA bank, which he would use to invest DIRECTLY in LIAT.

    Taking the above information into consideration, pray tell……how has ‘government’ “squandered an opportunity where the Barbados Treasury should have been many millions of $$$ better off,” ……. when Browne REJECTED the US$44M (EC$119M) our government was demanding for part of its shares in LIAT and subsequently informed our government he was NO LONER INTERESTED in purchasing those shares?

    My friend, you don’t have any point.

  13. @Artax
    The two were Gordon and Geoffrey. The former played for Hampshire, the latter for Sussex. Cricket was entering the professional realm. Cricket could be a career choice. Until then, fellas played for fun on the weekend.
    It was the lack of professional opportunity which allowed Packer to lure so many to play in S.Africa. It was 💰.
    The WI could have fielded 3 test teams.
    Shortly after, cable TV appeared, other sports were more glamorous.
    The passion for cricket en mass has waned.

  14. Baje

    They was NEVER a concluded agreement to buy the Barbados shares. Thing were under negotiation.

    U need to read what you post to support you wrong claims






  15. Browne’s statement that he had a commitment from ALBA Bank may or may not have been true. In any case the money never materialised, and Browne DID walk away from the greed of Queen Mia. As he should have.

    Now Queen Mia has received BD$1 (or is it even less, at EC$1?), for “her” Barbados shares in LIAT (1974) Limited.

    Browne’s current predicament is that he has made promises to all and sundry to keep LIAT operating, to do this to do that, all on the assumptions that castles will grow in the clouds and that the employees in Antigua will accept half pay and lose half of their severance.

    I don’t know if you know Antiguans, but my assessment is that they will not be at all happy about such highway robbery. Pension funds are not allowed to be be invested in risky businesses, but all of our governments “borrow” our pension monies – with the tacit approval of the actuaries and accountants who are supposed to protect them – and forcefully making Antiguan employees invest half their previous salary into this dubious (at best) venture and should be vocally resisted by all of us.

    Browne’s prospectus makes further assumptions that LIAT will continue to be politically directed, with a political appointee as Chairman and politically appointed Directors, and (I assume) politically appointed management.

    Would YOU invest in such a continuing LIAT shambles and be threatened or begged every six months for even more money – like Comrade Fat Ralph used to do??

    Browne came out of the first shareholder meeting and declared the company would be liquidated. As Paul Keens-Douglas would have said “Who, tell he, say dat??” Browne is neither the shareholder Chairman, nor the Chairman of the Board, nor is he the majority shareholder. He came out as an injured party and blurted out what the Press wanted to know – the worst possible news.

    I always want politicians to be transparent, to tell ALL of the people he represents the truth, no matter how bad. But this time he set the lessors on edge, the creditors on edge, the staff on edge and anybody remotely connected with LIAT’s welfare.

    As a result, nothing was ready when Comrade Chairman Fat Ralph invited six carriers to replace LIAT in the middle of a pandemic. Caribbean Airlines alone could have picked up the slack, but of the carriers invited two were not even qualified under CARICOM to provide inter-island service under the protections of the CARICOM Multilateral Air Services Agreement.

    interCaribbean is based and registered in the Turks & Caicos Islands, a British Overseas Territory, which is is NOT in CARICOM, and is nowhere mentioned in the MASA. Air Antilles is a full-blown French carrier based in the two easterly French islands, and is so far outside CARICOM it is ree-dickalus.

    Nor has ANY concern been shown for organising the needs of the islands by allocating routes or areas to the selected carriers. Is it first come, first served? Or is it whoever bullies their way in first gets the plum routes?

    The politicians – as filly expected by everyone I talk to – have screwed the entire situation up AGAIN. No planning, just knee-jerk reactions and behaving like little spoiled children in a school yard. Who pays for all their tantrums and mistakes? Yes, the taxpayer – then the politicians go back to stealing and lying business as usual.


    Politicians are the scum of the earth, and it is THEY who made it so.

  16. @John2
    Given TC knowledge and standing within the 🏏 world, while unaware of his condition, there are far worse conditions I could be afflicted with?

  17. @ John2

    Here is a man who professes to be much more intelligent than many of us in this forum; a man who CONSISTENTLY boasts about having gained several qualifications, taught at several universities, managed and owned several businesses…. and about his successes and business savvy.

    Rather than ADMIT he was WRONG by suggesting Antigua secured ALBA loan SPECIFICALLY to PURCHASE Barbados shares in LIAT, he PURPOSELY chose to ignore that statement in preference of presenting a COMPLETELY DIFFERENT ARGUMENT.

    That clearly indicates he’s not only the BIGGEST BULL SHITTER of us all….. but he’s an intellectual fraud with a very FRAGILE ego as well.

    A REAL MAN admits when he’s wrong and moves on.

  18. @bimjim
    How do you know the ALBA loan never materialized?
    GB is going to get LIAT for <$5 + liabilities. He can then pull the LIAT version of BOSS, called LOSS, and then skin creditors like the GoB did in the debt default. And then the ALBA loan can be used as shareholder equity in the new operation.
    If you haven’t realised the path LIAT has followed, closely resembles the NIS in Barbados.

  19. Rather than ADMIT he was WRONG by suggesting Antigua secured ALBA loan SPECIFICALLY to PURCHASE Barbados shares in LIAT, he PURPOSELY chose to ignore that statement in preference of presenting a COMPLETELY DIFFERENT ARGUMENT.






    Mr. Successful

    That’s the focus of YOUR attention……. NOT mine.

    I’m dealing with the point you raised INITIALLY, about the purpose of the ALBA loan was to purchase BGI’s shares.

    Anyhow, similarly to there being idiots on the block, there are are idiots on BU also. I’m not liming on the block now, but currently on BU, where you are as well. And, my comments are directed at you.

    I’m done!!!

  21. The donkey is braying about a number of millions $$$ that he know nothing of!
    How much did Antigua bid/offered or was willing to pay for the Barbados shares (which probably also included the barbados debt) he can not tell you.
    could it have be a few hundred thousands instead of a few millions? he can say.
    he argument was first based on the $40 EC (that is how he arrived at his few millions) but that was blown out the water so he have to keep shifting and the only thing he can hold onto is the $1

  22. After the involuntary isolation of Barbados during the COVID-19 outbreaks you would imagine that the Powers That Be have seen the long overdue need for locally sourced aviation resources.

  23. @ NorthrenObserver

    On November 4, 2019, Gaston Browne visited Venezuela to formally induct ANU into ALBA Bank as a new member and sign the financing contract to RECEIVE the US$15.8 loan.

    An interesting development occurred as a result of the loan. It was reported that, on November 6, 2019, US Senator Dick Durbin sent the following message via Twitter:

    “Troubling to see Antiguan Prime Minister Browne convey legitimacy to Maduro while he arrests & tortures his opposition & millions of Venezuelans flee in hunger & desperation. When will the proud democracies of our Caribbean neighbors stop enabling Maduro’s criminal regime?”

  24. @Artax
    I recall Durbins intervention. Odd as he is a senior Democratic senator, who when I looked into him back then, had no past situations with Venezuela.
    Politicians will get money from anybody when they need it? Their stay in power is temporary, their successor can assume the Debt.

    • @Artax

      Clause 3.5 seems to be a not too veiled threat directed at Barbados and St.Vincent?

      The document seems to be suggesting that a reorg LIAT will jump of an operating loss in 2020 to a projected profit of ???

      The other nugget of note is the projection assumption a 50% reduction in passenger load. Optimistic?

  25. LIAT should also fly to Venezuela in the future. Then all flights would be fully booked and LIAT would be profitable again. Fully booked with drug mules, of course.

    Of course, this is only a suggestion that is not entirely serious.

  26. @ David

    I realized two things about the reorganization plan:

    (1). One of Its assumptions is employees would accept 50% of their severance payments and a reduction in outstanding commitments to creditors.

    (2). It did not address refunding customers who would have booked flights that were subsequently cancelled as a result of COVID-19.

    • @Artax

      Browne has gone public with a position that it is better to receive a haircut than to lose a head. Regarding #2 there is probably an expectation shareholders in 1974 will have to pick up the tap- see item 3.5 in the reorg plan.

  27. @ Tron July 24, 2020 12:20 PM

    Our Great Leader and her court listen to the court jester indeed.

    Remember my proposals in mid-March, which provoked furious resistance at the time (and you did not want them on the blog, hehehehe):

    Wage cuts in the private sector and for civil servants, cuts in social benefits, more foreign top performers in the country. All this is now a reality.

    Wait and see. Once our permanent guests are here, they soon receive citizenship. 25,000 new citizens are a safe haven for our government in the elections.

  28. I used the words brilliant when referring to a few posts by made by HaHa.
    I believe that tron has moments of brilliance as well
    “25,000 new citizens are a safe haven for our government in the elections.”
    Tongue in cheek, idiotic, or sheer brilliance. I have often voted for the last category.

  29. @ David

    I’m wondering, since Antigua has now acquired ‘majority shareholding’ in LIAT, if Browne and his selected management team would move with similar zeal to implement some or all of the proposals outlined in the CDB funded study of the airline, which was completed in 2018 and given to shareholder governments?

    Interestingly, in March 2019, the shareholder governments held an emergency meeting in SVG, at which it was agreed LIAT could not survive without the CDB’s restructuring plan and a decision was taken by each member island to implement the recommendations outlined therein.

    • @Artax

      How do you envisaged dropping regional destinations who refuse to pay MRG and other fees to LIAT? How would that approach appeal to the expectant traveler?


  30. @ David

    If a territory refuses to honour its MRG obligation and is dropped from the itinerary, it’s that government’s fault. Other than government implementing new travel taxes or increasing those currently in place, I don’t believe ‘dropping’ a destination would deter “the expectant traveler” from traveling

    But, you have to consider the resulting political implications arising as a result, which may cause governments to think otherwise…. especially knowing it won’t be like previously, when governments could blatantly refuse to contribute anything to LIAT and still be provided service at the expense of taxpayers of other contributing islands and benefit from associated travel taxes and fees.

    Appendix 3 of ANU’s LIAT reorganization shows the St. Lucian government paying subsidies in the amount of $38.4M to foreign airlines, rather than investing or paying a subsidy to LIAT. The information in Appendix 4, which is a chart showing St. Lucia’s summary load factors by airline for 2018, is even more interesting and presents a strong argument why SLU should pay a MRG.

    However, I’m wondering how LIAT plans to go about ‘demanding’ MRGs from the governments of Netherlands for St. Maarten; France – Martinique and Guadeloupe; UK – Beef Island; and US for Puerto Rico, St. Croix and St. Thomas?

    It may be highly unlikely those countries may want to provide financial support for LIAT’s services. Management would have to determine whether or not if continuing flights to those destinations add value to the airline’s operating network and management could make the necessary decisions in the best interest of the company.

    • @Artax

      Your point is taken.

      Without seeing the historical passenger numbers by destinations it is difficult to offer an informed comment. For example, if Grenada and St. Lucia are popular destinations in the region, what would be the opportunity loss if those countries refused to pay MRG and diminish the kind of itinerary LIAT can offer the expectant traveller?

  31. @ David

    The MRG isn’t based on the popularity of destinations, but on a government’s obligation to pay LIAT the difference between the total passenger revenue collected and the agreed upon flight charge for services. I would think the popular destinations would be forthcoming with payments to maintain that popularity.

    The MRG model LIAT intended to use was based on a fixed MRG threshold, set at the destination network average earnings per seat, which is calculated as the weighted average load factor multiplied by the weighted average fare collected across LIAT’s entire network.

    So, in theory, under this model, it is a possibility some flights may have to be ‘cut’ if governments aren’t prepared to fund them through a revenue guarantee. However, the reality is, cutting flights, even those that are unprofitable = an under utilization of aircraft + a corresponding reduction in revenue, which would probably make the ‘cash strapped’ airline’s situation much worse.

    • @Artax

      IF SLU and GRE refused to inject capital should we assume they will be receptive to nMRG??

  32. @ David

    During a shareholders’ meeting held in Antigua on April 30, 2019, Grenada was accepted as the fifth main shareholder in LIAT. Since GND and DOM have, so far, not sold their shares to ANU for $1, probably means they support Browne’s re-organization plan. If so, then I believe it’s safe to also assume GND would be receptive to a MRG.

    SLU’s PM Allen Chastanet, has consistently reiterated his country’s opposition to providing any financial support to LIAT. However, Browne indicated Chastanet was willing to invest in LIAT 2020.

    Taking into consideration Browne’s proposals are for the reorganization of LIAT 1974 and ‘potshots’ were taken at SLU in the plan, especially at Appendix 3 and 4, it would be interesting to know Chastanet’s position at this time.

    But, I remember your comment re: “The sub region is strong because of the OECS establishment and resulting ethos. Do not be surprised if St. Lucia, Grenada and others are persuaded.”

  33. @ David

    Yesterday, Gaston Browne’s administration filed a petition in the Eastern Caribbean Supreme Court, allowing for the appointment of Browne’s nominee, Cleveland Seaforth, as Administrator to begin the process of restructuring LIAT.

    The Court also granted a stay on previous plans to liquidate the company and the meeting with the creditors that was scheduled for July 31.

    So, as you can see, Browne is moving ahead quickly.

    • @Artax

      This supports your comment.

      High Court grants petition to reorganise LIAT

      ST JOHN’S – A high court has granted a petition allowing for the reorganisation of the cash-strapped regional airline, LIAT, the appointment of an administrator as well as a stay of all proceedings relating to the liquidation of the company.
      Senior counsel Anthony Astaphan confirmed that the High Court in Antigua granted the petition late Friday as the Gaston Browne administration moves ahead with its efforts to reorganise the airline which owes creditors in excess of EC$100 million (BDS$74 million).
      Browne had disagreed with leaders of fellow shareholder governments, mainly Barbados and St Vincent and the Grenadines, to liquidate the airline, which has been serving the region for decades. Dominica is the other major shareholder government.
      “It was a petition to begin the process of reorganisation by the appointment of an administrator and a stay of all proceedings against LIAT, civil, liquidation proceedings by the shareholders, creditors, to put a stay on it which will give the administrator… appointed by the court to be able to take a deep look at LIAT and to make recommendations one way or the other,” Astpahan said.
      He said the administrator would assume control of the assets of the airline “and to begin the exercise imposed on him by the legislation, the amendments that were made recently.
      “And it is a very very important stepbecause it gives the Prime Minister … the opportunity to be able to work with the administrator and for the administrator to take a look at everything to be able to come to the conclusion that LIAT (1974) one sort or the other would be able to

      be reorganised and back in the skies”.
      According to the reorganisational plan, a copy of which was obtained by the CMC,Antigua and Barbuda is proposing re-investment of EC$108 million with St John’s indicating that under the new plan it is prepared to underwrite up to 50 per cent of the required capitalisation.
      “The new capital invested during reorganisation will be protected, in that it will rank in priority above all other creditors in the unlikely event of liquidation,” it said, noting that the remaining EC$54 million to be shared by other private and public sector entities, including existing shareholder governments.
      The Companies Act of Antigua and Barbuda allows for the appointment of an administrator, who will be the sole representative of the LIAT estate. All decisions involving the affairs of LIAT would be taken exclusively by the administrator and not the directors, or shareholders.
      The main responsibility of the Administrator would be to reorganise the company, by cutting liabilities and realigning expenses. The administrator would have full powers to negotiate terms with creditors, including agreement to reduce sums payable.
      Astaphan confirmed that as a result of the High Court ruling, a stay has been put on the creditor’s meeting that had been scheduled for July 31.
      He said the legislation “puts a complete stay on everything, it’s an automatic stay on everything, but in credit to LIAT, the debtor company in this case, their lawyer….indicated that LIAT had no objections to the petition or the

      appointment of the arbitrator”.
      He said the lawyer “wanted to make it absolutely clear that the stay should include the shareholders agreement to liquidate and also the creditors meeting that was schedule for the 31st of July”.

    • Mia mum on LIAT
      . . . But there’s no change in Barbados’ position
      PRIME MINISTER Mia Amor Mottley is not ready to talk about LIAT, but Barbados’ stance remains – it wants out of the broke airline.
      “Barbados’ position hasn’t changed. When I’m ready to talk, I’ll talk when I see what is happening there. The truth is that there is nothing new I will say,” she told the DAILY NATION .
      Mottley has been silent on the fate of the regional carrier ever since it was announced that the major shareholders of Barbados, St Vincent and the Grenadines were willing to liquidate it while the other major shareholder Antigua and Barbuda, where it is headquartered, wants a chance at restructuring it. Dominica is the other major shareholder.
      The Prime Minister stated that last week when the heads met with the Attorney General representing her it was agreed that the Antiguan government wanted to try to save the airline through an administrator.
      “. . . Therefore we paused the liquidation effort in order to allow them the opportunity to see whether administration will assist. In principle we have committed that Barbados and St Vincent and the Grenadines will step back and Dominica as other major shareholder to allow Antigua this administration that they want to try,” Mottley stated.
      She said she was waiting and was not prepared to be shouting across the Caribbean.
      Expressed interest
      The Prime Minister was asked about the possible gap created by the absence of LIAT, which has been critical to getting supplies into regional countries in times of disaster.
      However, Mottley listed a number of airlines from the region which have expressed interest in
      flying in the region pointing out that some of them were already flying.
      “They will help with the logistical delivery of this, [getting supplies to affected countries] in the same way that LIAT would have, had it been flying at this stage. So regardless as to whether it was One Caribbean, Air STV, CAL (Caribbean Airlines) interCarribean, Air Antigua when they start and one other from North America. There are a number of airlines flying the route,” she stated.
      Last Friday, a High Court in Antigua granted a petition allowing for the reorganisation of LIAT, the appointment of an administrator as well as staying all proceedings relating to the liquidation of the company.
      Antiguan Prime Minister Gaston Browne is making an effort to reorganise the 46-year-old airline which owes creditors more than EC$100 million.
      The administrator’s main responsibility will be to reorganise the company, by cutting liabilities and realigning expenses. The administrator will have full powers to negotiate terms with creditors, including agreement to reduce sums payable.

      Source: Nation Newspaper

  34. @ David

    The Barbados ‘government’ made a decision to sell the sell Barbadian taxpayers shareholding in LIAT to the Antiguan ‘government’ for EC$1…….. and PM Mia Mottley is essentially saying she will speak on issues pertaining to the airline when she’s READY to do so?

    I could understand Mottley making those comments if the shares were hers, but they belong to the Barbadian taxpayers. Therefore, she is OBLIGATED to keeping Barbadians informed of any decisions made on our behalf and new developments as it relates to LIAT.

    Mia Mottley is WRONG!!!

    She should have informed us the shares were sold and WHY, rather than we having to hear about it from Gaston Browne the same day of the sale.

    Despite how Browne has been handling this issue, he must be commended for sharing information with Antiguans (and by extension the region), relative to any new developments or decisions his administration made on their behalf.

    • @Artax

      Usually when complicated matters are being negotiated it should be done giving consideration to the fact confidentially maybe a consideration at times. At some point she must issue a ministerial statement for the concern you have expressed. And not when the deal is has been completed either.

    • New airline to take off August 4
      Prime Minister Mia Mottley yesterday announced the arrival of interCaribbean Airways to Barbados, with flights expected to start from August 4.
      She revealed that the airline, which is based in Turks & Caicos, had already started interviews for local staff.
      “As I indicated in a previous statement, the Government of Barbados has met with a number of airlines who have expressed interest in operating in the eastern and southern Caribbean.
      “Barbados is fortunate that interCaribbean has been chosen as its southern hub with a view to expansion and the establishment of headquarters in the future. InterCaribbean has been operating in the northern Caribbean for almost 30 years but under different brands. Their flights will start from Tuesday, August 4, 2020, from Barbados,” she said in a media statement last night.
      Potential coming
      She added: “We have already seen some of the potential coming from this decision of interCaribbean, with them looking for the rental of some homes and cars and office space. I am told that some of the interviews for local staff have also started this week.”
      In reference to the fallout created by the demise of regional airline LIAT, the Prime Minister further expressed hope “that the final agreement for a regional bubble for air travel will be completed and started within the next two weeks so that we can leverage the minimal risk posed by moving within those countries of ours whose incidence is extremely low.”
      “As I said earlier this week, we will work cooperatively to review our tax regime to stimulate regional travel. In this, I know our late Prime Minister Mr Owen Arthur will be smiling from wherever he is for he strenuously supported the need to review fees and taxes as an impetus for renewed regional movement of our citizens and residents,” she noted.
      InterCaribbean Airways was established more than 28 years ago by founder and present day chairman, Lyndon Gardiner, a Turks & Caicos islander.
      For more than two decades, its operations have focused on the western area of the Caribbean, with services in some of the region’s major cities in Antigua, Bahamas, Cuba, Dominica, Dominican Republic, Haiti, Puerto Rico, Jamaica, the British Virgin Islands, St Lucia, and Turks and Caicos.
      Gardiner had recently announced that the company was committed to hiring some of the displaced LIAT staff while also seeking to increase the number of destinations it currently services.

      Source: Nation

    • InterCaribbean chairman promises reasonable prices
      Carrier interCaribbean Airways is expected to touch down in Barbados on Tuesday, joining several other airlines picking up the slack as the regionally-owned LIAT remains grounded with financial woes.
      Travellers can expect “reasonably priced” airfares said 53-year-old Lyndon Gardnier, founder and chairman of interCaribbean based in the Turks and Caicos.
      The pilot and former banker told the Sunday Sun that the fare would not be the “exorbitant” cost passengers have been putting up with, and complaining about, for decades.
      ‘Palatable’ prices “Our prices are going to be very palatable, you can’t get a good service for cheap, it just does not exist when it comes to air service. I think we are going to be reasonably priced. We are not going to have the kind of exorbitant prices you’ve seen in the marketplace pre-COVID-19,” he said.
      Gardnier stated that pricing was a matter of having the right equipment and flying the more direct routes which was why the Barbados hub is critical. He explained that the decision to come to Barbados was strategic because of its ideal proximity to other islands, the number of extra-regional flights primarily from North America and Europe the country attracted and the additional incentive of the Government’s pro-business approach.
      He said rather than islandhopping, interCaribbean would be using Barbados to streamline its operations with an efficient hub to get the most out of the economies of scale and that would include routing people through the hub.
      Gardnier said regional governments were taking note of the travel industry and looking for ways to reduce taxes since prior to COVID-19 taxes on tickets were more than the airfare and will “work together to bring down ticket cost for the consumer”.
      Lower ticket cost
      “We think because there is lower ticket cost it can add up to more people travelling, so with more people travelling, obviously, you go back to having economies of scale and that is a win-win situation for everyone,” said Gardnier.
      The airline will initially have a schedule of six flights a week from its fleet of ten 30-seaters and two 50-seater jets with flight in the morning and afternoon.
      The airline is looking to serve 13 destinations and to exceed the number of destinations served by LIAT out of Barbados by launching flights to its bases in the Dominican Republic and Turks and Caicos which cover the northern and western Caribbean.
      Broke airline
      Last week on the LIAT issue, Prime Minister Mia Mottley said that there were several airlines flying or about to fly into the island and along with interCaribbean she listed One Caribbean, Air STV, CAL (Caribbean Airlines) and Air Antigua.
      LIAT’s major shareholders Barbados and St Vincent and the Grenadines were willing to liquidate the broke airline while the other major shareholder Antigua and Barbuda, where it is headquartered, wanted a chance at restructuring it. Dominica is the other large shareholder. The court has halted the liquidation to allow an adminstrator to attempt the restructuring. ( AC)

      Source: Nation

  35. I am almost convinced that for some, this woman can walk on water.
    If she is able to get a RHm to hold a press conference stating that she did, like the blogmaster, I am getting on the train.
    RHm= Religious and Holy man

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