Submitted by M.R.Thompson
LIAT to Upgrade to 11 ATRs over a two year period
Quote from Barbados Nation Newspaper of June 27, 2013…
“LIAT, with the partial backing of some Caribbean governments, is enhancing and transforming its fleet, with 12 new aircraft over the next two years that will cost investors US$100 million.”
This very simple but not fully explained statement got me in the market for an ATR72, pretty cheap if you can buy 12 aircraft for $100m, that’s only $8.3m per aircraft. I think I’ll take a dozen at that price myself. A new ATR 72 500/600 model sells for $18 to 23m, used 10 year old aircraft still demand some $12m each.
Where did LIAT find such a good deal on these ATR72’s or is there some very creative book keeping promoting this exceptional deal. Creative booking is really a Caribbean political area of expertise. As LIAT is an airline owned by various countries citizens some questions should be asked to explain this seeming unrealistic purchase price.
Personally I’d expect to see the already ridiculously high LIAT fares increase significantly to support this purchase and maintain the bloated LIAT workforce.
Just some REDNECK thoughts.
Barbados Underground 
Congrats to PM Stuart and other shareholder Caricom heads for putting the matter of LIAT forceably to T&T and Caricom. It is time LIAT started the fightback:
PM: LIAT a major concern
Prime Minister Freundel Stuart. (FP)
Sun, July 07, 2013 – 12:08 AM
PORT OF SPAIN – Barbados is so concerned about the future viability of regional carrier LIAT that it sought legal advice on whether its heavily subsidized competitor Caribbean Airlines (CAL) was following CARICOM rules.
Speaking to the media at the start of the final day of the 34th regular CARICOM Heads of Government conference at the Hilton Hotel in Port of Spain, Prime Minister Freundel Stuart said with Barbados the largest shareholder in LIAT, its future was of “great concern to him”, especially in light of the fact that CAL was being subsidized by the Trinidad and Tobago government.
“Now what has happened in recent times is that against the background of the Revised Treaty of Chaguaramas and its provisions, it has emerged that CAL has been buying its fuel at $50 per barrel, while LIAT has had to buy its fuel at upwards a $100 a barrel.
“In other words, the government of Trinidad and Tobago is subsidizing CAL for the purchase of its fuel and is competing with LIAT on regional routes. As far as we are concerned, and we have discussed it at many LIAT meetings, that is competitive behaviour and it’s against the spirit of the revised Treaty of Chaguaramas, and we have been engaging the government of Trinidad on that issue,” he explained. (BGIS/BW)
Please read the full story in today’s SUNDAY SUN, or in the eNATION edition.