GCAA submits claim to LIAT for millions owed

Oct 08, 2020 News

Kaieteur News – The Guyana Civil Aviation Authority (GCAA) has submitted a claim to LIAT for monies it owes.
Director-General of the GCAA, Egbert Field, told Kaieteur News that his agency had submitted the claim directly to LIAT’s Administrator, Cleveland Seaforth, who also serves as the Chairman of BDO Antigua and Barbuda. The Guyana-born administrator was appointed in July by the Courts of Antigua when that country’s government decided to take a legal course in reorganizing and saving the regional airline.
The Director-General stated that the cash strapped airline owes monies for several things including landing and navigational charges. Further, he noted that following Seaforth’s appointment, the authority was asked to submit their account of LIAT’s debt, as the airline was seeking to pay off what it can.
Kaieteur News understands that the sum owed by the airline is around $21M.
It was also reported in other sections of the media that the airline’s total debt to Guyanese entities is close to $80M.
According to reports LIAT owes the Ogle Airport Inc. just under $60.5M, which dates back to December 2019 and most of it is for unpaid passenger facilitation fees collected by LIAT. The rest of the money covers landing and parking fees, security fees, and office rental.
The airline is also in debt to its former handling agent, Trans Guyana. The sum owed in this latter case was not specified but it was disclosed that the debt is for handling fees.
Additionally, the Director-General stated that the GCAA is yet to hear from LIAT about its future operations in Guyana. Just months ago the authority wrote to the airline to query about its operations in Guyana so that a swift decision can be made. The authority had hoped then, that a response with clarity would have been given. The decision to contact the airline was made after the authority learned of LIAT’s halt in the liquidation and its aim to rebrand.
Further, the GCAA had revealed that it only became aware of the halt in LIAT’s liquidation via the media since it had failed to provide the local aviation authority with the necessary updates.
LIAT recorded a loss of EC$12M (US$4.4M) last year and said US$5.4M was needed for it to recover. Prime Minister of Antigua and Barbuda, Gaston Browne, announced in late June that the airline will be ceasing operations but then there were discussions held between stakeholders and it was decided that the airline will be rebranded and revamped because it is a regional brand whose legacy shouldn’t die.

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