LIAT gets Nov.15 deadline Web Posted - Mon Nov 04 2002 (Barbados Advocate) By David Hinkson REGIONAL air carrier LIAT has been given until November 15 to raise EC$11 million in order to stay airborne. In addition, the airline will have to submit financial proposals on its continued operations. This was one of the major decisions coming out of a meeting called by senior LIAT executives in St. Vincent over the weekend, chaired by Prime Minister of St. Vincent, Ralph Gonsalves and attended by Prime Minister Patrick Manning of Trinidad and Tobago, President of Guyana Bharat Jagdeo and Prime Minister Owen Arthur. The regional governments have agreed to guarantee the money to LIAT, with Barbados taking up 22 per cent of the amount. Any further funding for the airline will be based on the proposals that it submits to a finance committee. Minister of Tourism and International Transport Noel Lynch, who also attended the meeting, said a committee chaired by Trinidad and Tobago and comprising representatives from Barbados, Guyana, St. Vincent, Antigua and the CARICOM Secretariat, had also been set up to look at the issues of predatory pricing and scheduling. Lynch said the main aim would be to create a free and fair competitive environment for all airlines operating within the region. The committee is scheduled to meet in Trinidad on November 12. In the past year, LIAT and a relatively new competitor, Caribbean Star, have been involved in a "price war" which has significantly reduced the cost of air travel within the region. The tourism minister said, "if the practice of predatory pricing is pushing prices down to the point where airlines are no longer viable, we could lose all of our airlift, and if LIAT fails, let it fail because it was unable to compete within a free and fair environment, and not because prices had been artificially propped up." He added that LIAT has its roots in the region, and for over 40 years it has contributed significantly to social and economic development. "I believe that as governments we have a social responsibility to keep the airline viable," he observed. Prime Minister Arthur noted that CARICOM governments were paying special attention to the LIAT situation since "we in the Caribbean right now cannot afford to have any more collapse of the important institutions sustaining regional integration." Lynch said following on from the Multilateral Air Services Agreement that came into effect some years ago, Caribbean governments were now looking at creating a regulatory environment that was adaptable across the region. The minister said this had wider implications since it would also speak to the viability of all airlines operating in the region. He further noted that early next year, Barbados should have a new Civil Aviation Act replacing the current legislation which dated back to the 1950s in its original form. The owner of Roger's Trinbago Site: Roj (Roger James) *************************************************** escape email mailto:ejames@escape.ca Trinbago site: http://www.tntisland.com CBC Website http://www.tntisland.com/caribbeanbrassconnection/ The Trinbago Site of the Week: (I95.5FM) http://www.i955fm.com (Radio Station I95.5FM) courtesy of Roj Trinbago Website & TnT Web Directory Roj's Trinbago Website: http://www.tntisland.com TnT Web Directory: http://search.co.tt *********************************************************