Struggling airline LIAT received pledges from four Caribbean countries Friday for an Eastern Caribbean $9.4 million bailout package.
The decision came after the prime ministers of Trinidad, Barbados, Antigua and St. Vincent met in Barbados to discuss ways to keep the cash-strapped airline afloat, said St. Vincent Prime Minister Ralph Gonsalves.The four countries gave Antigua-based LIAT a December deadline to use the money for restructuring its operations.
The funds included Eastern Caribbean $4.8 million (US$1.8 million) from Antigua to pay off the airline's debt to the Antiguan government.
Barbados, St. Vincent, and Antigua each pledged to give Eastern Caribbean 5.7 million (US$2.1 million). Trinidad agreed to grant a five-year, Eastern Caribbean $17 million (US$6.4 million) loan to help St. Vincent and Antigua finance the bailout package. The loan came at no interest.
Last year, LIAT received bailout package worth Eastern Caribbean ($25 million (US$9.4 million) from Antigua, Trinidad, Barbados, St. Vincent and Grenada.
Caribbean airlines have been struggling to cope with increased insurance and security costs and decreased travel following the Sept. 11, 2001, attacks in the United States.
In 2002, the LIAT laid off 241 employees, or one-third of its work force.
Some have argued that LIAT, Air Jamaica and Trinidad-based BWIA should merge to form a single regional carrier.
