LIAT to wind up on January 24

The 67-year-old regional airline LIAT will make its final flights this month.

A winding-up order takes effect on January 24.

The airline is without a CEO and currently under administration. An administrator is appointed to help ensure an insolvent company pays what it owes in terms of a judgment or other financial obligations.

Court-appointed administrator Cleveland Seaforth issued a notice on Thursday, telling employees that with a few exceptions, they would be sent home without an immediate severance package.

Only a few will work past January 24 to do some “tidying up.”

The Barbados Today newspaper reported on January 5 that the court-appointed administrator, after careful consideration and evaluation, decided to cease all commercial flying by the airline at the close of business on January 24.

Seaforth wrote that as a result staff will be made redundant with effect from February.

He said the company “recognises its obligations" which would be provided separately "within 45 days of this letter after the respective computations have been completed.”

The airline said while its indebtedness to staff could not be immediately met, the administrator will make every effort to secure the best outcome in this respect to all employees in accordance with legal and contractual requirements.

LIAT was formed as Leeward Islands Air Transport in 1956.

The Antigua and Barbuda-based airline was earmarked for liquidation, as announced by the country’s prime minister Gaston Brown, in June, 2020, owing to increased debt and the disastrous impact of the covid19 pandemic.

The government of Antigua secured an order for administration a month later, naming Seaforth administrator.