Part 1 of 2

Can LIAT (1974) Limited Survive? 

By Kwame Nkosi Romeo

Guiltiness rests on their conscience

Bob Marley

Sixty-five years after the founding of Leeward Island Air Transport (LIAT),  the ill-fated West Indies Federation (WIF) on May 31, 1962, the birth of CARICOM on August 1, 1973, and the Organization of East Caribbean States (OECS) on June 18, 1981, the struggle continues. 

Genuine empowerment to control the national accounts and demand that those elected to govern carry out the people's empowerment plan. 

The economy's true transformation is crucial to benefit the working class, development, and future generations.

 With 40 years of Antigua and Barbuda's independence forthcoming on November 1, 2021, is a disturbing historical proportion crisis similar to the failed WIF: The closure of LIAT (1974) LTD. 

The airline closure after 47 years is unthinkable. It would be a disastrous outcome for the dedicated and committed workers and economies in the sub-region that benefited from the growth and transition from Leeward Island Air Transport (LIAT) on October 20, 1956, to the rise of LIAT (1974) Limited on October 20, 1974.

LIAT's beginnings and its founding father, Sir Frank Delisle, are inseparable. The airline has spanned 65 years of developing Caribbean economies, providing employment, professional, and safe service, but is now facing litigation and economic burdens. These defining moments will test regional unity and the tenet of CARICOM.

Was Leeward Islands Air Transport (LIAT) transition to LIAT (1974) Limited in vain? 

Workers recall Sir George Walter's Progressive Labor Movement (PLM) government's genuine involvement, the Antigua Workers Union's (AWU) resoluteness, courageous workers' sacrifice, and Venezuela's enduring support in rescuing the airline from the brink of disaster. This bold initiative saved jobs in the Caribbean to stabilize regional economies. 

In contrast, former Antigua Labor Party (ALP) prime minister Lester Bird labored to destroy LIAT (1974) Ltd. through political-business collaboration in 2001.

Bird's objective was to attack LIAT (1974) Ltd in favor of R. Alan Stanford, Caribbean Star Airlines (CSA), contending with LIAT (1974) Ltd's routes. 

Despite that, LIAT (1974) Ltd survived the turbulence of political power and monied interest, purchasing CSA on October 24, 2007, boosting and consolidating its intra-Caribbean route.

Where are today's leaders? A critical examination of LIAT (1974) LTD soon followed.

The Genesis of the Study

LIAT (1974) Limited study's genesis involved Caribbean Tourism Organization (CTO) member countries under the banner: "A Proposal Policy Regime for Ensuring the Sustainability of the Caribbean's Air Transport Services Sector August 2007." 

According to the CTO, the significant problems hindering intra-travel included:

• Improving the ease of passenger movement.
• Launching actions to improve Caribbean air travel efficiency.

Further, the group agreed that travel clearance at the first port of entry was necessary to alleviate the negative impact of intra-travel.

Four years later, on August 11, 2014, David Evans, CEO of LIAT (1974) LTD, warned shareholding governments about negative taxation on air travel, announcing that governments collected $1 on every $3 spent on air travel. Evans pointed out in a Caribjournal Op-ED article: 

"For every $3 spent on air travel in the region, $1 goes straight into government treasuries. I have argued that a reduction in taxation on aviation would increase demand and increase the tax take back to the government" (Caribjournal Op-ED article: How to Improve Caribbean Aviation in Six Steps)

Following this, the OECS Commission selected Trinidad consulting firm El Perial Management Services to undertake - A Study on the Factors Inhibiting Intra-Regional Travel in the OECS. The study recommends reducing government taxes to facilitate easier, more frequent travel in the sub-region. 

A preceding World Bank Study in 2006 identified that "efficiency and cost-effectiveness of air transport services will be the major consideration in increasing the contribution of air services to the economic development of the Caribbean region as a tourism destination." (WB Study Caribbean Air Transport- Strategic Options for Improved Services and Sector Performance

Subsequently, Hugh Riley, Secretary General CTO, hinted on February 10, 2015: "We remain concerned over intra-regional travel to the sub-regional grouping, the Organization of Eastern Caribbean States, the OECS. Demand for intra-regional travel to the OECS countries remained depressed for most of 2014, with preliminary estimates suggesting the market segment contracted by over 3%.

The El Perial Management Services report to the OECS Commission emphasized Evans's intuitions and Riley's concern. The research urges reducing government taxes to make travel simpler and increase travel in the subregion. 

Still, shareholding governments were noncommittal to Evans' strategic focus. (A Study on the Factors Inhibiting Intra-Regional Travel in the OECS by El Perial Management Services March 26, 2015)

Shifting the blame, prime minister Gaston Browne wrongly conflated LIAT's (1974) LTD financial woes with the pilot's economic demands for higher wages. 

Close to seven years ago, regional governments were aware of LIAT's (1974) Limited financial crisis; nevertheless, they missed two favorable opportunities on August 11, 2014, and March 26, 2015. 

David Evans, CEO of LIAT, called for tax reductions in 2014; El Perla also reported the adverse effects of intraregional travel taxes. 

Both suggested that reducing taxes could have done a lot to rescue LIAT 1974 Limited and encourage intraregional travel. 

The problem of intra-regional travel is fraught with general costs. Sometimes, it's cheaper to travel to San Juan, New York, Miami, or Panama than intra-Caribbean. 

OECS policymakers never implement the report findings and recommendations of the El Perial Management Services.

 

The government's lack of interest evolved into a crisis with the advent of COVID-19. Only now is the Antigua and Barbuda government scrambling to find a solution to save the airline.

In this instance, Prime Minister Gaston Browne referred to LIAT (1974) LTD pilots as bad eggs and rotten elements with a lousy work ethic on two occasions in October 2020 and March 2021, implying that these naturalized citizens do not have a legal bond with the state. 

Also, these workers will be the last to receive redundancy payments due to their naturalized status. This anti-foreigner statement indicates intentional discrimination that fails to observe the Antigua and Barbuda Constitution and flouts national and international labor laws and citizenship rights. 

The holders of the twin-island state passports confer on the person natural rights that Browne cannot deny or revoke. 

Browne's dishonorable actions violate the Caribbean Community and Common Market (CARICOM) principle established by the Treaty of Chaguaramas in 1973, and revised in 2001 to create the CARICOM Single Market and Economy (CSME).CSME was implemented in 2006, increasing the free movement of persons within CARICOM. 

Therefore, CARICOM must intervene to resolve the vexing issue and assure justice.

Browne's view is unfavorable to the principles summed up in the preamble of the United Nations Universal Declaration of Human Rights: 

"Recognition of the inherent dignity and the equal and inalienable rights of all members of the human family is the foundation of freedom, justice, and peace in the world."

Additionally, Article 15 of the 1948 Universal Declaration of Human Rights provides that "(1) Everyone has the right to a nationality" and that (2) No one shall be arbitrarily deprived of his nationality nor denied the right to change his nationality."

On the other hand, Browne is tolerant of Raju Boddu, Antigua and Barbuda Comptroller of Customs & Excise Division, with the most decisive pronouncement that Raju stays until retirement. 

Why should Gaston give preference to Boddu but discriminate against Caribbean citizens?

Boddu claims that his subordinates lacked leadership qualities and a sense of responsibility, a claim that is misleading, scandalous, and characteristic of historical disempowerment. 

That after more than eight years, no one can fulfill his position is cause for concern. Boddu's statement differs from his World Investment News interview on February 23, 2017, in which he was questioned about Antigua and Barbuda's international trade sector relative to foreign investment. 

Boddu was forthright and explicit: "...what's happening is that people have acquired skills and knowledge and they don't have the opportunity here to develop them, so there is a lot of immigration, especially to the UK and US." (World Investment News - February 23, 2017, Antigua and Barbuda: Interview with Mr. Raju Boddu)

The government is robbing public sector workers of their right to develop and ignoring public funds collection. Remember, Boddu came to Antigua and Barbuda on a contractual basis, not to seek citizenship. 

Boddu is supposedly a citizen of Antigua and Barbuda, now using his citizenship to protect his employment and livelihood while frustrating workers' growth and serving dominant business interests. 

This bobol is what Browne should be concerned about: Ah wey de money garn? 

So, stop cussing Caribbeaners and devaluing their high-principled work ethics. Caribbeaners' only value to ALP is the vote; nothing else matters.

To be continued