Daily Archives: April 6, 2014

Tomas Chlumecky: LIAT should tell the truth

Editor’s Note: This article was written prior to the recent announcement that David Evans had been hired as LIAT’s new CEO. Will the change at the top make a difference? The rot goes deep, as this article by Tomas Chlumecky shows…

LIAT late

As LIAT continues to drain tax payers money, is it not time for the tax payers to ask for action and accountability from their politicians?

As an Airline Consultant, I thought I have seen it all, but LIAT is a very special case indeed. Experience shows that companies in decline MUST replace some of the people responsible for the decline, these people lead the company to its current position and are incapable of the mind set needed to make fundamental changes to the strategy they so blindly believed in that created the crisis in the first place. They may not see it, but they block any real changes because they are bent on defending the dying cause, therefore they need to go!

When will the Board realize that the Chairman of LIAT, Dr. Jean Holder and once again Acting-CEO and CFO Mrs. Julie Reifer-Jones are failed leaders that have led LIAT to where it is today? Any reasonable Board by now would have requested their resignation.

Recently LIAT blames the “summer meltdown” on its inability to sell its DHC-8 aircraft because they do not have the records for the aircraft up to date! One year after ordering the ATR’s and knowing full well they needed to sell them with records up to date, just the fact the records are not up to date is NOT acceptable. If they flew with records not up to date the then ECCCA needs to step in investigate. Just horrible management.

Next, the people of the EC are being told the new ATR’s are more economical and that is why LIAT went out to buy and lease 12 ATR’s. This is non-sense. The 8 ATR-72’s will cost about $US1.4 million lease payments per month! The 4 ATR-42’s being purchased cost $US 74 million at list price, so what LIAT did was substantially increase it lease obligations and debt at a time it has little money, pays salaries late and cannot even keep its maintenance records up to date. Continue reading

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