LIAT plans US$54 fleet renewal

LIAT - the regional air carrier in the Caribbean - is planning a US$54 million upgrade of its fleet of 18 Bombardier Dash-8 aircraft.

St Vincent and the Grenadines Prime Minister Ralph Gonsalves made the announcement in Barbados Sunday following a weekend shareholder meeting to discuss the plan, which involves buying new aircraft.

“We anticipate that we probably need US$54 million to do some fleet renewal and we discussed some ways and means of how we can possibly go,” the Prime Minister said.

The Governments of Antigua and Barbuda, Barbados and St. Vincent and the Grenadines have a 90 per cent stake in the Antigua-based LIAT. Other regional Governments and minority shareholders own the other 10 per cent.

Fifteen of its fleet of Dash-8 aircraft have a seating capacity of 50 and the other three are 37-seater planes.

Gonsalves said the goal is to replace the smaller aircraft with new ones, noting that Brazil, China and Canada are interested in doing business with LIAT.

"You know the Chinese are interested, they have given us a model for an aircraft which they would like to sell us...Bombadier, the people who have been supplying the Dash-8, they have shown an interest…I know the Brazilians may have some kind of aircraft, so we’d listen to everybody. We’re looking for the best commercial deal,” Gonsalves told reporters.

He did not explain how the airline would finance the development plan but said shareholders would explore all available options open to them.

He said in the past, the Canadian government helped through the Export Development Corporation "and we got those planes at really good prices and we were able to deal with our debt…some of it was forgiven."

He also noted that Chinese manufacturers are seeking to “get a foot hold in the market” and would have generous commercial terms to offer.