Daily Archives: March 22, 2014

Robert MacLellan asks when LIAT chairman Jean Holder will be held accountable

“Real competition is brutal and the wolves are sensing and circling the wounded LIAT prey.”

“Idle threats” from LIAT’s chairman do more harm than good

by Robert MacLellan

by Robert MacLellan

The board of LIAT airline is clearly feeling the pressure of mounting ongoing criticism of its consistent inability to achieve a stable business model and to provide a vital intra regional air service in the Eastern Caribbean on a reliable basis.

Unfortunately, the announcements of 6th March from the LIAT chairman, Jean Holder, strongly suggest a strategy still devoid of any coherent business sense. Take on huge investment in multiple new aircraft but then shrink the airline’s network? “Passing strange” and “wondrous pitiful”, to quote Shakespeare. If, instead, this is Dr Holder’s idle threat, designed to panic other regional governments in to investing in an airline with such a tarnished reputation, then that also is a strategy likely to fail.

Investors seek companies with proven management expertise. Yet, in his 100 day strategy announcement last week, Dr Holder stated that the current directors and senior management have invited “some experts” to undertake route analysis of the LIAT network. Outside consultants are needed for a basic management task – even after 57 years of LIAT operations? No wonder there are accusations of amateurism in LIAT management and no wonder years of persuasion by Dr Holder have failed to elicit much new investment in the airline from other governments in the region. Continue reading

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