Talks between Antigua & Barbuda and Barbados over the future of LIAT (Antigua and Barbuda) (Antigua) broke down without resolution on July 8 after just a few hours, Barbados Today has reported. Antigua reportedly failed to present an acceptable bid for the acquisition of Barbados' stake in the ailing Caribbean regional carrier.
A source in Antigua & Barbuda told Barbados Today that following the brief negotiations at the Hilton Barbados Resort, a deal was unlikely to be reached soon.
"The outcome so far does not reflect that the two sides are anywhere close to Barbados selling even a portion of its shares. It does not look probable for the near future,” the source said.
Among the sticking points was Barbados Prime Minister Mia Mottley’s insistence that the other side would have to adopt Barbados’ almost USD100 million in loan commitments, much of it owed to the Caribbean Development Bank for purchasing three ATR42-600s, which the bank still officially owns. Barbados had also demanded a guarantee that LIAT employees on the island would not be dismissed.
The source admitted that Barbados was not concerned about LIAT dropping any capacity to the island, as five of the carrier's six profitable routes go there. “Any move to pull LIAT flights out of Barbados would lead to an immediate collapse of the airline,” the source told Barbados Today.
LIAT currently operates 25 routes with 488 weekly frequencies, according to the ch-aviation capacities module. Barbados currently has a 49% stake in the airline, Antigua & Barbuda a 34% stake.
