Government of Dominica to invest over $300,000 into LIAT
Dominica is set to invest over USD $300,000 into the cash strapped regional airline LIAT to help keep it in the skies.
That disclosure was made following an emergency meeting with LIAT’s shareholder governments, and the various other stakeholders of LIAT last night in Barbados.
Caribbean countries are being asked to contribute a total of US$5.4 million in emergency funding needed to keep the airline in the sky.
At the same time, 11 destinations have been given until Friday, March 15, to respond to the airline’s Minimal Revenue Guarantee (MRG) proposals.
Antigua and Barbuda, Barbados, Dominica and St. Vincent and the Grenadines along with Grenada, have agreed to contribute to the US$5.4 million.
Dominica, is being asked to contribute just over US$347 thousand US dollars in light of its 25 weekly flights.
Barbados, which has the 116 weekly departures, the highest by LIAT, is being asked to contribute US$1.614 million.
A source within the Ministry of Tourism told DBS News that many routes are not profitable, and going forward the routes that are not profitable to be flown will be dropped unless the respective islands pay for the empty seats.
The source went on to say that all the islands have been contacted to provide support for the 5 million dollars required.
If they do not contribute then the flights will be dropped.
The source went on to say that Dominica will contribute as air access is critical to the country’s economic survival.
DBS news has also learnt that staff at LIAT have been asked to take a salary cut to help fix the financial issues.