(Barbados Nation) LIAT (1974) Limited is in line for a US$54 million upgrade of its aircraft fleet.
According to Prime Minister Dr Ralph Gonsalves of St Vincent and the Grenadines, the airline is preparing to buy three new planes.
It is replacing its three 37-seater aircraft with three 50-seaters.
LIAT is to have discussions with Chinese, Brazilian and Dash-8 aircraft suppliers with a view of getting the best deal possible, Gonsalves told reporters here on Saturday.
Buying new aircraft was among the issues discussed on Saturday morning by heads of the LIAT shareholder governments – Gonsalves, Barbados’ Prime Minister David Thompson, and his Antigua and Barbuda counterpart, Baldwin Spencer.
The discussions took place against the backdrop of the two-day convocation on the CARICOM Single Market and Economy at the Lloyd Erskine Sandiford Conference Centre.
“A main issue we discussed strategically (Saturday) morning was the question of new aircraft,”Gonsalves said.
“We need some new aircraft. The three (Dash-8) 100s, which we own, we’d like to replace them with 300s.”
According to him, about US$54 million was required for the “fleet renewal”.
Gonsalves said the Chinese were “interested” in making a sale.
“They have given us the model for an aircraft which they would like to sell us,” he said.
“The Chinese want to get a foothold in the market. They will have generous commercial terms which they grant you. There are different ways in which you can get the money.
“We have gotten planes already from Canada through the Export Development Corporation and we got those planes at very good prices. We were able to deal with our debt. Some of it was forgiven….”
Gonsalves said talks were also planned with Brazilian aircraft suppliers and the Dash-8 suppliers, with LIAT “looking for the best commercial deal”.
The meeting involving the three LIAT shareholder governments also discussed the dispute with the pilots’ association, LIALPA, and the financial state of the airline. The main matter of contention between the management and LIALPA is salaries and working conditions, over which pilots have staged industrial action.
Gonsalves appeared optimistic that the dispute with the pilots would soon be over.
“We are going to sort this thing out. There is a procedure and we just have to give the process time to work.”
However, he appeared to hold out no hope for a cut in LIAT’s fares in the near future. He said taxes were one component of airline ticket costs and when fares were reduced governments had to find ways to finance airport projects.
