Ralph Gonsalves, Prime Minister of St Vincent and the Grenadines, chaired the meeting which was attended by his counterparts from Barbados, Freundel Stuart and Baldwin Spencer of Antigua and Barbuda.
The three prime ministers met with LIAT's board of directors and management to discuss the way forward for the regional carrier. They late met with representatives of LIAT’s 10 trade unions in an effort to foster communication and dialogue among LIAT’s stakeholders.
At a media conference following the meetings, Gonsalves told reporters the shareholders agreed with the airline’s management on certain steps for effecting the stabilization of the company.
These would involve a range of measures including reductions in the airline’s schedule, enhanced marketing and promotions in a number of markets, improving efficiency within certain departments, and targeted staff reductions aimed keeping costs down. The airline's losses over the past two years reached EC$60 million.
Gonsalves said shareholders noted the continuing challenges that the company faces, including high oil prices, continuing weaknesses in the regional and international economy, intensified competition on LIAT routes, the costs of maintaining an ageing fleet and industrial relations problems.
He said the company has been mandated to put together proposals for possible restructuring of LIAT to be presented to the shareholders for their review.
Gonsalves said shareholder governments would be reviewing the various proposals with the aim of meeting shortly in order to arrive at a recommendation as to the best choices for acquisition of new aircraft for the company.
With respect to talks with the unions, Gonsalves said there is a need to continue the dialogue, adding that LIAT's management and the unions plan to meet next week to address outstanding issues including discussion of the company’s strategic plan and objectives.
Chairman of the LIAT Board of Directors Dr. Jean Holder told the shareholders meeting LIAT will continue to play a lead role in the movement of people throughout the region. He added that the airline is committed to closer cooperation with other regional carriers where the interests of the airline and its shareholders were sufficiently guaranteed.
Stuart told reporters the three main shareholder governments will continue to support LIAT and work with the company’s management to chart a way towards its long term sustainability.
“We have, in our discussions today (Tuesday), laid the foundation for meaningful progress on the issue of LIAT,” Stuart said.
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