LIAT to cut over 36 flights vow to become profitable in 2013

Burton in announcing the airline’s new business plan noted that over three dozen “uneconomic” flights currently provided by LIAT will be cut thus saving millions. He stressed that countries wishing for these flights to continue must ‘pay up’, but did not indicate where those flights originated.

“LIAT cannot afford to go on being a charity and losing the kind of money. If you need them flown, do what every country does when they need that kind of flight, and that is to give financial support – commercial support – in order that the flight at least breaks even. We don’t want to make money off it but we want to be able to pay our costs on those flights,” Burton added.

He also said that LIAT was looking to its existing shareholders and some new ones to help it in achieving its goals.

“We are targeting a 20 per cent equity contribution; 15 per cent from the existing major shareholders – Barbados (49 per cent), Antigua & Barbuda (32 per cent) and St Vincent & the Grenadines (11 per cent) – five per cent from at least three new shareholders who wish to invest in LIAT, Dominica, St Lucia and St Kitts.”

A key part of the company’s strategy to return to profitability is the acquisition of six new aircraft (ATR 42s) to replace some of its ageing fleet. The newest is 15 years old and the oldest 23 years. It incurs high maintenance costs as much as $40 - $60 million per year.

LIAT recorded losses of $20.2 million and $43 million in 2010 and 2011 respectively and projects a $23 million loss in 2012. With the dropping of the unprofitable routes and acquisition of new planes company predicts that it will return to profitability in 2013 and beyond.