Are LIAT’s major shareholders deliberately destroying the airline in order to re-create it without debt?

liat-airlines-disasterby Passin Thru

Sometimes our assumptions about a situation or problem blind us to simple answers that are right in front of us.

Could it be that the apparent increasing incompetence by senior LIAT management and a rapidly deteriorating cash flow are actually part of a plan to push the airline over a financial cliff as soon as possible, so that it can be reformed without debt and with limited political fallout?

LIAT’s biggest asset is its routes. Nothing else really matters. The aircraft are leased, and LIAT’s facilities are also mostly rented. The airline owns little of any real value that couldn’t be bought at fire-sale prices after a bankruptcy.

So let’s here from those who know about airlines and LIAT in particular… Is it possible that LIAT’s shareholders are deliberately destroying the airline?

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9 Comments

Filed under Aviation, Barbados, Barbados Tourism, Barbados Transportation

9 responses to “Are LIAT’s major shareholders deliberately destroying the airline in order to re-create it without debt?

  1. De Castro

    Am sure the CEO and board has the answer to above….after decision to “tank” all will be revealed.

  2. PLANTATION DEEDS FROM 1926-2015 AND SEE MASSIVE FRAUD ,LAND TAX BILLS AND NO DEEDS,DLP AND BLP MUST GO VOTE CUP

    You all can see what kinds of business people you dealing with , Same sick bitches on the land also in the air, They know nothing about business they just crooks , liars and scumbags,
    FIFA men all over the place looking for a pay off,
    MOF and REDJET, they love to shoot self in the foot,

  3. The Politicians

    The writer is correct about the routes being the prime asset. Don’t underestimate the political dimension to this either. People are tired of this black hole that keeps sucking in money year after year and the politicians would love a ‘get out of jail free’ card to reboot the whole thing without political damage.

  4. James Lynch

    I have personally, publicly and privately, told the shareholder politicians directly that if they want others to be involved they have to clean up the airline, starting at the top with themselves, and install people all the way down to executive management who know about aviation.

    Of course, what would I know, I am not a Prime Minister “expert at everything”, so I am being ignored. Yet Kenny Anthony told them in 2013 to clean up the airline and he would consider rejoining – there have been no changes because of his statement either.

    I simply cannot believe that supposedly intelligent people – our “leaders” – would repeatedly express a definition of insanity, insist on maintaining what has been proven wrong, and still expect every year to see LIAT break even or make a profit.

    No investor would touch LIAT because of its inherent costs. But it seems acceptable to keep blowing as much as US$100 million of taxpayer money a year on what they insist is an essential service. AS WELL AS demanding enormous sums from travellers in charges, fees and taxes.

    It is reasonable for a well-run public company to lose a few bucks now and then, but LIAT is not well run and what they lose is not a few bucks. And at this point in time none of the three major shareholders are financially able to put in the cash needed to “save” it – as opposed to making it efficient.

    Consider that the newe CEO has now been there for about a year, and apart from providing the document which nearly divided CARICOM has done NOTHING to earn his pay, although he HAS done a huge amount of being a tourist at LIAT expense.

    Add in the fact that the shareholders consider the annual accounts – of a resource paid for by taxpayer money – to be “none of our damned business”, and there is a supreme arrogance and spirit of entitlement which makes them believe the taxpayer has no rights.

    So I agree with the proposition. Itt is reasonable to assume that the shareholders do not really want the airline to survive in its present form, and the best way to kill it without them taking the blame is to refuse to change anything and let it bleed to death.

  5. De Castro

    James
    Excellent prognosis and to the point.
    So let it tank ! Then rebrand itself !
    HSBC is now rebandin itself in UK.
    Will probably return to it s roots…..far east where it makes 2/3 RDS of its profits..
    In this global picture LIAT will disappear (Houdini) and reappear as “new and improved” some other “toothpaste”……check out the supermarket shelves too “toothpaste”……confused com ?

    Wonderful comment and precise “condemnation” POLITRICKS 😈

  6. De Castro

    HSBC HQ some tax haven Bahamas Gibraltar Switzerland where o “CORPORATE TAX” …IRELAND 12% UK 22%……GOOGLE IT?😇

  7. James Lynch

    Problem is, if LIAT disappears the current shareholders DO NOT HAVE THE MONEY to create a newe LIAT. Yes, within a year sonme other carriers – Caribbean Airlines included – would have replaced many of the services, but only the profibale ones – and there is the rub.

    I am unable to fathom why the current shareholders have been so stubborn about replaqcingt the political appointees with qualified aviation people… are a few political favours so much more important than the sub-region’s people?

    And the constant denial of access of the taxpayers who pay the bills to LIAT’s annual accounts is another baffler – are some people stealing so much through LIAT that the accounts cannot be made public?

    I think at this point the shareholders should name a date in about 2 years time when they will shut it down, and give the market an opportunity to organise itself to take over in the meantime.

  8. De Castro

    Its simple
    If u loosing money….no tax to pay.
    If u making profit …..tax liability.

    LIAT has their snouts I taxpayers trough.
    Guilty as proved.
    QED

  9. James Lynch

    http://www.rslonline.com/index.php/news/973-slu-not-in-liat-new-summer-schedule

    SLU not in LIAT new summer schedule
    Undated; Found 12 July, 2015

    A number of new services and non-stop routes which have been added to the summer schedule of LIAT will come into effect on July 15 and 16.

    But St. Lucia does not feature in the summer schedule.

    The new additional flight schedule comes one week after media reports quoted St. Lucia’s Prime Minister Hon. Dr. Kenny Anthony as withdrawing further financial assistance for the troubled airline until a review of operations.

    Dr Anthony’s position was reiterated earlier this week by Minister of Tourism and Heritage Industries.

    In the new summer schedule which makes no mention of St. Lucia, LIAT says its customers will enjoy a new daily service to San Juan each evening from Antigua. This is in addition to the existing morning service from Antigua to San Juan, via Dominica which operates daily.

    Flight number LI 581 from Antigua to Dominica and on to Barbados has been upgraded to a daily service, and has been re-timed to leave Antigua in the early morning.

    —–

    LIAT is now operating with the same staff and half the revenue of two years ago… now they drop St. Lucia, perhaps 25% of LIAT’s entire load in the southern tier.

    I can only come to believe, more and more, that LIAT’s shareholders are intentionally closing the airline down