Regional airline LIAT has announced it will wind down operations and close on January 24th.
News broke in reports by Barbados Today after their news desk obtained a copy of a letter signed by LIAT Administrator Cleveland Seaforth, dated January 4th 2024.
“After careful consideration and evaluation of the present operations, a decision has been taken by the court-appointed administrator to permanently cease all commercial flying operations as of close of business on January 24, 2024”, the letter said.
LIAT, founded in 1956 as Leeward Islands Air Transport, has been owned by Caribbean governments since 1974. But the airline collapsed in 2020 amid rising debt and the COVID-19 pandemic’s impact, leaving hundreds unemployed.
In the letter, LIAT’s court-appointed administrator Cleveland Seaforth notified over 90 employees they will be made redundant as commercial flights cease. Workers will not receive severance payments currently but were promised LIAT will meet its obligations.
“As a result of the foregoing, you are hereby notified that your employment with LIAT (1974) Limited (in administration) will be made redundant effective Feburary 4, 2024… The company recognises its obligation as it relates to any of the applicable entitlements, which will be provided to you under separate cover within 45 days of this letter after the respective computations have been completed”, the letter said.
A few staff will remain temporarily to assist with shut down. Seaforth thanked employees for their service during LIAT’s attempted scaled-back relaunch in late 2020 on a limited schedule.
The closure marks the end of an era for the iconic Caribbean carrier.
Pilots and staff have been fighting for owed severance and entitlements since LIAT’s 2020 failure.
Antigua and Barbuda’s Prime Minister previously said LIAT would be liquidated and reformed under a new airline, LIAT 2020 Ltd. But operations continued to wind down amid mounting financial troubles.
The collapse left many employees and regional travellers stranded.