Dominica invests $3 million in LIAT becomes fourth major shareholder

Prime Minister Roosevelt Skerrit made the announcement shortly before leaving for Barbados to attend a meeting of the airline’s shareholders on Friday, which includes Antigua, Barbados, and St Vincent and the Grenadines.

In making the announcement, Skerrit defended his government’s decision to put funds into the airline, noting that “as we have maintained we see this as an important venture. We recognise that LIAT itself has certain challenges, but the question is which airline in the world does not and we believe from a government standpoint we are looking at a wider benefit of LIAT to Dominica and the wider Caribbean,” Skerrit said.

His decision to invest in LIAT has come in for widespread criticism within Dominica with many contending that the country simply does not have the resources to shore up a failing airline. However, Skerrit has maintained that the investment is critical in helping to safeguard Dominica’s investment in the tourism industry.

LIAT recently announced plans to return to profitability next year after years of recording losses. Key to that plan is the shutting down of over 36 flights that it considers uneconomic, and the purchase of six new aircraft. This will affect 18 countries, although LIAT did not indicate which of the countries will be affected.

In June 2012, Skerrit announced that his government would make an investment of EC $8 million in LIAT shortly after one of its planes was destroyed in a hangar fire at Antigua’s VC Bird International airport.