Submitted by Captain James C. “Jim” Lynch (retired)

12 January, 2020

PM Antigua
PM Barbados
PM Dominica
PM Grenada
PM St.Lucia

  • Please read my professional take on LIAT before acting…

Honourable Prime Ministers…

There is a strong case to be made – indeed, the case has been presented for at least the last 20 years – that LIAT should be commercialised… that is, the shareholder Chairman and entire Board replaced with individuals who have or have had some involvement with and interest in aviation, and the executive management replaced with airline professionals who are capable of performing the major surgery of turning the airline around towards breaking even – and perhaps making a profit in the not too distant future.

Yes, the Board has just been renewed, but with the addition of ONE single person who has the first clue about aviation and airlines. I congratulate you on that one, but the rest of them – including former PM of Barbados Owen Arthur – are still bereft of any airline knowledge and will vote against him if they see fit or are politically instructed.

When will you learn? Will you continue to do the same things year after year and still expect the results of that insanity to be different? You don’t do that with your government, why would you do that with LIAT?

In the MANY decades that PM Gonsalves and Chairman Holder have been at the LIAT helm, there has been nothing out of their political meddling but incompetence, failure and losses, and it is clear that neither has learned the slightest thing about running or supporting an airline.

In any private industry the shareholders would have booted these people out and replaced them in or before the second year of abysmal performance, yet the political Carnival continues at major expense to the shareholder taxpayers.

FACT: The Board STILL consists of political friends and appointees; only ONE has the slightest knowledge of aviation except as passengers. This has been the case for some 30 years.

FACT: The current CEO, previously CFO, was previously a government-owned hotel book-keeper who was appointed to the CFO position at LIAT by Chairman Holder, and with his support was elevated to her Most Superior Level Of Incompetence in the position of airline CEO.

I put it to you that her performance has been to lose even more money her term so far as CEO than LIAT has ever lost before, and the management and performance of LIAT as an airline also reflects her incompetence for the job.

FACT: An airline is not a hardware store, it is not a legal office, it is not a fast food restaurant. An airline is a highly technical institution which employs rigidly licensed professionals – pilots and engineers, who undergo frequent training and performance checks – as some half of its workforce.

“Good enough for government work”, haphazard implementation and best guesstimates have no place in any part of an airline’s operations or maintenance. An airline is one of the most regulated and supervised industries in the world – after nuclear power plants.

It should not be necessary to recount that an owner of almost any business provides the broadest mandates – instructions – to their Board, the Board only slightly less broad mandates to its management, and that unless something goes wrong THEY DO NOT INTERFERE. And if/when something does go wrong it is the job and the responsibility of the Chairman and CEO to face the ownership – and the public – to calm the waters and explain what went wrong.

It should also not be necessary to state that when a company is publicly owned – by taxpayers through the government – transparency is vital, especially when taxpayers are constantly being asked to provide financial support to the business.

Yet LIAT has not made its (audited??) annual accounts – if there are any – available to ANY public entity for over 40 years. Any accountant or lawyer with experience would flag such a failing as an indication that one or more people had been siphoning off (taxpayer) funds for decades, and that everyone from shareholder through Board to executive management had been aiding and abetting in the CONCEALMENT of such activities.

We are finally at a unique crossroads where one shareholder will have the majority, and with that the right and the capability to impose changes on the airline and set LIAT on the right track to break-even, if not head into profitability.

That shareholder (was Barbados, will now be Antigua) has been provided with multiple suggestions as how this should best be done.

Prime Ministers, I put it to you that the current ploy of demanding more money from the LIAT shareholders and LIAT destination governments is NOT the solution to LIAT’s problems.

LIAT’s REAL problems are
1. in appropriate political interference,
2. unqualified political appointees and
3. incompetent management.

It could be said that #2 and #3 emanate from – because if the Board contained anyone who knew a bit about aviation the taxpayers would not now be on the hook for between US$65 million and US$100 million in airplanes (which I understand have now almost ALL been sold to acquire cash to pay the lease-backs – so the shareholders do not now even own the airplanes).

At the time the Trinidadian CEO (as an agent for ATR, improperly) brambled the LIAT Board – as he had (also improperly) brambled the Caribbean Airlines Board before – into buying a whole new fleet of ATRs for US$100 million, it would have been possible to cycle the entire fleet of known, existing, suitable, reliable, hardy Dash-8’s through Bombardier in Canada for all of them to be “zero-timed” for a cost of less than a quarter of that amount, OR to sell them and replace them with more recently manufactured Dash-8s.

AND, a competent LIAT Board would have appointed competent management which would not have needed to sell all of the ATR aircraft on lease-back to replace hemmoraging cash.

Prime Ministers, what LIAT needs is the removal of politics and the insertion of professional competence. There MUST be competence at Board and at management level, with the shareholders at arms-length providing the BROADEST mandate (such as “you must achieve break even or better within a year”), and the Board (also at arms-length) providing more granular mandates – but NOT interfering in the running of the airline.

But what is happening now – the hemmoraging of money, the constant financial demands on shareholders, destination governments, passengers and staff – is 100% unacceptable and can ONLY end up one way, and that is the closure of the airline, whether you want to admit it or not.

At some point the shareholders and passengers will be simply unable to afford the expense, and for sure attacking the staff (again) for the incompetence of Board and management will result in walk-outs – also whether you want to admit it or not.

I ask you to discontinue this political approach to “saving” the airline, and to work instead towards making LIAT a commercial entity.

I also warn you that the continued “soaking” of the travelling public with cash cow aviation taxes and fees will have the same efect – people staying home, because they simply cannot afford to travel regionally on LIAT.

I wish you well, but as a Caribbean professional and an observer in aviation for over 50 years these days I continue to expect the worst.

Yes, as a professional I too am “not impressed”.

Thank you for your valuable time and consideration.

Best wishes,

James C. “Jim” Lynch
Captain, retired
* Originally from Barbados, West Indies

https://www.linkedin.com/in/captain-james-jim-lynch-90892328/

96 responses to “Captain Urges LIAT Shareholders to Think BEFORE acting …”


  1. @ William Skinner

    Haha you just proved my point and did not even realized it. Slow down and assess.

    All of the companies you mentioned are based in a SINGLE island. That was EXACTLY my point. That even with the reality of interference you stand a better chance with an organization controlled by a single entity than a pan Caribbean political mess that we have today. In today’s environment LIAT would NEVER function professionally.

    Geez guys just look at the CCJ…we can’t even collectively agree on that across the region and we have a ton of legal experts amongst us

    You all really living on hopes and dreams only. Need to manage in the real world

  2. William Skinner Avatar

    @ Bajeabroad

    You put the Transport Board in there. There is nothing wrong with the CCJ it is functioning quite well and eventually all will be on board.
    The Caribbean Development Bank is perhaps the only bank that we can get money from now.
    TheUniversity of the West Indies is still standing.
    Caribbean Airways was owned by one European man not the Caribbean governments. That was a peculiar arrangement hatched by Barrow.
    The Caribbean Tourism Organization is being run by Caribbean technocrats;
    You and others are impeding regional progress by pretending that these islands are filled with nothing more than neophytes . That is not true. Let us have a positive discussion and stop pretending that nothing works in the region. Why then is our PM accepting the chair of CARICOM.
    There are several regionally integrated projects that are professionally run and working.
    All of this hot and sweaty talk about Guyana is laughable.
    Imagine people come on BU spouting about us helping Guyana with “ adventure tourism “ without understanding what that means and then we were going to invest in “ jungle tourism “. They did not even know that Guyana is way ahead in eco tourism and community tourism until their alarming lack of information was exposed in one single article.
    Please do some research on regional projects before coming on BU spouting off that there is no “ professional management environment “. We have very young people throughout the region who making company presidents long before age forty. Have you heard about One Caribbean Media?
    I can go on but I hope the picture is clear. Please don’t fall victim to those on BU who consume endless cool aid and litter BU with pure waffle in defense of their Duopoly masters.


  3. Let’s all revisit this topic in 9 months and see what’s the reality…

    The truth always comes out

  4. William Skinner Avatar

    @ Bajeabroad

    Always willing to engage ideas and not personalities, I realise you are an ideas person. Let’s hope for the best. We have to think about future generations.


  5. @jim
    “Wait, you from St. Lucy.”
    Really?


  6. “Former Speaker of the House Michael Carrington, who is also an attorney, and one of Inniss’ brothers arrived around 11 a.m.”

    oh shite…lol


  7. I read this post as saying that the Airline should be managed by the staff. The shares are for sale, staff should seek the requisite funding and buy the shares, taking a controlling interest in the enterprise. Thereafter, staff is free to implement the management proposals the writer favors.


  8. How does a guy like Jean Holder end up as the (allegedly) meddlesome board chair at LIAT?

    Because there is this pervasive attitude among West Indians — and not just the elites either — that if you’re a “bright” student who attended a good university, you should be able to manage just about any organization out there.

    Holder is a Barbados scholar who graduated from Oxford University with a degree in some useless subject. He was then trained as a diplomat, and had a reasonably successful run in the top job at the Caribbean Tourism Research Centre.

    The problem we have as West Indians is an insufficient understanding of just how demanding management, and management oversight, can be.

    While some people have the instincts, discipline and judgment to be good managers, most of us need to go to business school, and then study the subject for many years by keeping up with the academic and professional literature. Otherwise, given our limited experience of the world growing up in tiny Caribbean islands, we just can’t cut it, either as corporate executives or as corporate overlords.


  9. WARU,

    You cannot expect them to behave. The leap of civilization from plantation to parliament in two, three generation was far too great. I have seen with my own eyes that they cannot even eat with knife and fork.


  10. And the defense for inniss says

    “The government is saying something about a bribe, but they have to prove it and prove it beyond a reasonable doubt. This case is about politics 2000 miles away and you are going to hear about a powerful organisation that collected profits long before Inniss came into office,” Ricco said.
    Xxxx_—”——-‘—Well….welll

    Sumbodys must be s.hitying them pants or panties


  11. je suis en vacances..


  12. (Quote):
    Former Speaker of the Barbados House of Assembly and Democratic Labour Party (DLP) colleague Michael Carrington, also joined the proceedings during the day. (Unquote).
    +++++++++++++++++++++++++++++++++++++++++++++++++++++

    Bajan ‘bent’ black birdies do like to flock together (even in the cold) especially when they were hatched in the same ‘withering’ tree on George Street.

    Is this the Bajan meaning of the French term: “Un pour tous, tous pour un”?

    Where is that other dodgy low(e)down mosquito when his presence is needed most to bring closure to this seemingly obvious case of “guilty by association”?


  13. A blackbird will be singing
    All my widows are opened
    I am all but ready to take a front seat row


  14. @ MariposaJanuary 14, 2020 8:46 AM

    The only song that ‘single’ blackbird will be singing is: “That’s What Friends Are For”.

    It was your boss-man Fumbles who threw his disloyal compatriot from the republic of St. Philip under the bus for being a cantankerous surly and disruptive ‘team player’ in his crooked cabinet of musket-carrying powder monkeys who made up the crew on the ship which governed Barbados from 2010 to 2018 and sailed her right into the waiting and welcoming clutches of the loanshark called “It (was) My Fault”.


  15. Mari

    Politics and a powerful organisation????

    Hmmmmmmm………

    After all, it’s evident you’re involved in politics and I remember you saying “you duz manage a large organisation.” So, de “sumbody (dat) must be s.hitying them panties” could be you.

    One of your guys is now in a US Court fighting a money laundering charge and, perhaps in an effort to take the focus off him, it seems you’re now attempting to imply some of your political opponents may be somehow involved well.

    Despite how many times you and other apologists want us to believe there are fundamental differences between members of both BLP and DLP, you’ve essentially proven Mr. Skinner and Miller have been “spot on” all this while.

    The duopoly rules.

    Hahahahahaha…….


  16. ” subpoenas were served and two search warrants were executed in relation to Inniss’ email addresses.”

    The reach of the US Department of Justice is very long.

    Guvmunt ministas and corporate big ups in babadus musse shiiting duh undawears.


  17. Sum a dem maguffees wid florida an new yawk real estate could have some splainin to do effin duh ent squeaky clean.


  18. “Holder is a Barbados scholar who graduated from Oxford University with a degree in some useless subject. He was then trained as a diplomat, and had a reasonably successful run in the top job at the Caribbean Tourism Research Centre.”

    The Barbados Government Civil Service is peppered with high-up people who have third and fourth degrees, so much damn edumacation they are functionally illiterate and can do NOTHING. But dem hab plenty Surtiffikits so dem does gets de jobs – and does achieve nuttn fuh de ress a dem lives.

    Politicians are the scum of the earth – and it is themselves who made it so.


  19. It’s a tragedy. The whole world is looking at New York. So what are we gonna do? Commentators on BU are thrashing Mia Mottley, Dale Marshal, Enuff and Lorenzo, while in New York the whole system of blue slave drivers is being indicted.

    No wonder they criticize Tron because he doesn’t believe in the “complaint”. I wouldn’t be surprised if the Americans ignore this relic of white supremacist rule that black lawyers in Barbados cling to like the nun clings to the Bible. It must be some kind of Stockholm syndrome.


  20. “No clue about airlines, but wunnuh is experts – maybe you should be in politricks, where it is ALL bullshyte and no substance.”

    Amen!!


  21. Wuhloss..Dale Whistleblower just threw Donville head-first…LIVE…under the bus, in parliament, looks like Donville alone was the corrupt criminal organization in Barbados…according to Dale…..A ONE MAN CRIME WAVE…

    Looks like Donville is going to have to take some jail for his partners…alyuh sell out yya own people and now ya selling out ya partners in crime…

    who is surprised..

    when i see anyone one of you …I WILL RUN LIKE HELL.


  22. Ah hope Donville has the stamina to SERVE A 10 OR 20 YEAR PRISON SENTENCE…..cause he already looks like he is SHRINKING AWAY..


  23. Ah hope all the other members of that CRIMINAL SYNDICATE in parliament, bar association and Supreme Court are taking notes and noticing that they too will be thrown under the bus and run over a few times by their fellow criminals….soon Enuff.


  24. Ah wonder if they got the memo yet that DONVILLE IS NOT GOING DOWN ALONE.

    They all committed too many crimes against the people. And ya see that Money Launderer’s Inc VIDEO from the parliament, well we made sure it hit every part of Brooklyn and Queens. Yes we know where to find the Bajan community. YOU THIEVES.

    https://m.facebook.com/story.php?story_fbid=1225422071000663&id=100005986451739


  25. They are all so corrupt. Criminal Syndicate & Co. This is a sitting Judge always accused of corruption and they all know it so no integrity legislation for the Judges. Corruption in the supreme court will be still intact.

    http://www.ipcommunity.org/MemberDetails.aspx?MemberID=47547&Name=Olson-Alleyne-%26-Co.&City=Bridgetown&State=&Country=Barbados&PracticeArea=Patent

  26. fortyacresandamule Avatar
    fortyacresandamule

    @Ewart. Your republican-styled conservative bias has bequeathed to you a tunnel vision mode of thinking. Guyana has various models to choose from. Norway’s statoil, is a major investor in Norway, outside of their souvreign wealth fund. Norway, didn’t just depend on selling raw crude. They diversified the oil sector and the economy overall by investing in various commercial venture. In other words, they didn’t rest on their laurels waiting for outside investors. Pumping crude by itself does nothing for value addition or job creation.

    Trinidad has transition from an oil economy to gas in the 90s. However, it was the Trinidad goverment having the foresight to invest in the petrochemical industry ( Phoenix park, Point Lisa industrial complex, and gas pipelines). NGC, out of Trinidad, is one of the most profitable public companies in Latin america and the caribbean.

  27. fortyacresandamule Avatar
    fortyacresandamule

    Air Jamaica was loosing money prior to privatisation in 1993. However, after ten years of private ownership, its accumulated losses were much worst prior to the years of privatisation.The stupid goverment of Jamaica then take back the airline from the Butch Stewart-led group with all the massive debt on the books. Go figure.

  28. fortyacresandamule Avatar
    fortyacresandamule

    Guyana should use her oil money to diversify and industrialize her economy. Even tiny Bahrain has a robust petrochemical industry. By 2025 the government of Guyana is projected to collect oil flow revenue of US$ 5 billion.That’s more than the GDP of BIM. The government should set up two funds like norway. One for domestic investment and a saving fund for future generations.

  29. Vincent Codrington Avatar
    Vincent Codrington

    Backward and forward linkages in the production chain. Very interesting projection.


  30. fortyacresandamule

    It takes jutzpah to tell me how profitable Trinidad’s state-owned petrochemical businesses are. At the very least, your statement is misleading.

    I don’t have access today to the financial reports for the particular businesses you referenced. But I know that nearly all state-owned enterprises in Trinidad are losing money. Every year, the state-owned sector as a whole, which consists of more than 60 major companies, loses more than TT$2 billion, according to the newspapers.


  31. New Chairman or not St. Lucia is not budging in the issue of contributing to the coffers of LIAT.


  32. @ January 15, 2020 6:10 PM

    And PM Chastanet is right to maintain his country’s position on LIAT.

    No financial contribution to bail out LIAT until Browne ejects some of the Head Office flotsam and jetsam from the sinking airship stationed at ANU.

    Let OSA be the messenger to take back this sine qua non for the survival of LIAT to his new boss.


  33. I totally agree with PM Chastenet,

    Hard decisions have to be made in the interest of your country and at least he had the balls to do it with LIAT. We should absolutely do the same in Barbados. The definition is insanity is well known so let’s not keep repeating the same approach and looking for a miraculously profitable result.

    As a fellow pilot, I love the nostalgia of old BAC 111 and HS748 photos against the backdrop of a Caribbean sky or shooting ILS approaches down to minimums. But as an entrepreneur, sticking with a political football like LIAT is the fastest way to continue throwing money down a bottomless pit.

    Let’s move on


  34. “And PM Chastanet is right to maintain his country’s position on LIAT.”

    Miller

    The St. Lucian PM’s decision should not surprise you.

    Chastanet has been consistent in his criticisms of LIAT and supporting the need for competition in the region. I recall in 2010 when he was tourism minister, he was critical of LIAT’s airfare structure, saying he not seen any major strategic changes in airline that would result in reduced prices to regional travellers. Chastanet continued articulating his position while in Opposition, when Dr. Kenny Anthony was PM….. and now as SLU’s PM.

    As at November 16, 2013, the Government and people of SLU owned minority shareholdings of 1.11% (EC$6M) in LIAT. I’m not sure if the percentage of those shares has increased.

    I believe it’s about time the shareholders should solicit investment in LIAT from regional investors, allowing it to become private sector regional airline, operating on a commercial basis and being responsive to market demand, with the objective of achieving long-term profitability.

  35. fortyacresandamule Avatar
    fortyacresandamule

    @Ewart. Misleading what? You are deflecting. I was referring specifically to the National Gas Company of Trinindad (NGC) and Trinindad petrochemical industry overall. The NGC is a very successful public company. Don’t take my word fot it. Do your own research. Every year the company make super profits, even though the gas they sold to some industry is subsided. If the former Petrotrin refinery was run like NGC, they would have been a successful entity also. NGC is not hampered by union politics and a bloated wage bill.


  36. @ Artax January 15, 2020 8:46 PM
    “I believe it’s about time the shareholders should solicit investment in LIAT from regional investors, allowing it to become private sector regional airline, operating on a commercial basis and being responsive to market demand, with the objective of achieving long-term profitability.”
    ++++++++++++++++++++++++++++++++++++++++++++++++++++

    Agree that more private sector involvement is required in the ownership and control of LIAT (or its air transport equivalent) which is a vital engine to the success of the tourism industry or travel within the sub-region.

    Why can’t the likes of Maloney put their money and business acumen where their hotel building mouths are?

    The same way these governments can brag about the new model of “PPP” business operations, as in the case of the GAIA (and soon the seaport) why not ask the region’s kingpins of business to lend a helping hand in the rescuing of LIAT.

    Then we will know whether these so-called business tycoons of the sub-region are real patriots keen on seeing the region prosper or they are simply a bunch of parasites always sucking at the nipples of taxpayers-funded State “welfarism”.

  37. fortyacresandamule Avatar
    fortyacresandamule

    @Miller. That’s asking way too much from these private sector actors, who are mainly rent-seekers and risk-averse at the same time.

    With that been said, running any airline business is not for the faint-of-heart. Very deep pocket is required. The joke about the quickest way to become a millionaire if you are billionaire is to venture into the airline industry holds a lot of truth.


  38. A welcomed intervention by Chairman of LIAT Owen Arthur heard on VOB this afternoon.


  39. fortyacresandamule

    You are being misleading, trying to trick low-information folks into believing that Trinidad has many profitable, state-owned companies in oil, gas, and petrochemicals.

    That is FALSE

    OIL INDUSTRY
    Trinidad’s oil production and refining industries were developed by foreign companies (BP, Shell and Texaco) which were all highly profitable and successful. But, between 1969 and 1985, the Trinidad government nationalized the oil industry, forcing BP, Shell and Texaco to turn over their assets to the state-owned TRINTOPEC and TRINTOC. By 1993, both of these state-owned Trinidadian companies were drowning in debt from their financial losses, and were replaced by another state-owned company, PETROTRIN, which also failed and was closed down in 2018.

    NATURAL GAS
    Trinidad’s nat gas industry is run by private sector firms. The only major state-owned gas company is a pipeline company, the National Gas Company (NGC) that you have spotlighted.

    NGC is a middleman. It buys gas from foreign companies in Trinidad which do the heavy lifting of finding and producing the gas. It then sells this gas to other, mostly private sector petrochemical companies. An easy business and, yes, profitable.

    REPEAT: In Trinidad, most gas and petrochemical companies are foreign companies, not state-owned companies. Whenever the government has tried to lead the effort at industrial diversification, it has failed. The biggest government failures were the bankrupt oil refinery at Point-a-Pierre and the bankrupt Iron & Steel Company of Trinidad & Tobago at Point Lisas.

  40. fortyacresandamule Avatar
    fortyacresandamule

    @Ewart. You are a very dense fella. You cannot dispute the success of NGC and its success in monetising the gas economy. Instead you are deflecting all over the place. Carry on.


  41. fortyacresandamule

    You are the dummy.

    I just explained to you that the humble role NGC plays in the gas and petrochemical industries of Trinidad is as a transportation company, delivering natural gas by pipeline from (1) the private companies that explore for gas, drill wells and bring the gas to the surface, and (2) the private companies that convert the gas to ammonia, methanol, urea and other products.

    Just as you pay a taxi driver to take you from one place to another, private companies pay NGC to move gas from the well head to their petrochemical plants.

    That is a trivial business. And it generates only a tiny share of the profits made from the nat gas industries of Trinidad.


  42. Can you guys avoid ad hominems?


  43. Right on the heels of a new board
    Chastanet reinstate the obvious

    investing in LIAT
    SHAREFIL GAILLARD CREATED : 15 JANUARY 2020CARIBBEAN NEWS

    Prime Minister Allen Chastanet has maintained his position in not supporting the cash strapped regional carrier airline LIAT despite the airline’s new Board of Directors and chairman.

    St. Lucia has rejected calls in the past to invest in the carrier and refuses to do so unless the airline addresses its deficiencies.

    “Unless LIAT undergoes some critical changes to improve its financial situation, Saint Lucia will not be investing in the carrier,” Chastanet said.

    In December 2019, eight directors were selected to join new LIAT Chairman, former Prime Minister of Barbados, Owen Arthur, to help restructure the entity.

    Antigua and Barbuda Prime Minister, Gaston Browne, has welcomed the appointment of former Barbados leader Owen Arthur as the new Chairman of cash-strapped LIAT and believes under his leadership, the airline could be headed in the right direction.

    “I think that Prime Minister Arthur is a very capable person, he was one of the key architects behind the expansion, the resurgence of LIAT when he was prime minister and there are some new board members as well. Saint Lucia’s commitment is always there on condition that we see that there is a growing concern that we can invest in,” Chastanet told reporters.

    “We have to be satisfied that the tough decisions that have to be made in LIAT are going to be made,” he added.

    Saint Lucia according to Chastanet remains hopeful that something positive comes out of the newly installed board of LIAT.

    “We will wait to see what Mr Prime Minister Arthur will be able to achieve and if in fact, he can make the structural changes that we think is necessary at LIAT, then we will give thought to making an investment,” he declared

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