LIAT needs millions to survive, says St. Vincent PM:

The regional airline LIAT needs an estimated EC$17 million (US$6.2 million) to keep it airborne until it came be merged with Trinidad and Tobago´s national carrier, BWIA on July 1, according to St. Vincent and the Grenadines Prime Minister Dr. Ralph Gonsalves.

Dr. Gonsalves on Friday held discussions with Prime Minister Patrick Manning on the issue and afterwards told reporters that, operationally, LIAT will have a shortfall of EC$3.5 million (US$1.2 million) over the next six months.

"It is absolutely important, strategically central for LIAT to be in the air," Dr. Gonsalves told reporters, adding that that the Antigua-based airline would need EC$17 million until " a nexus" could be formed with BWIA.

Dr. Gonsalves said that while regional governments were "behind time" on the proposed merger involving BWIA and LIAT, the new deadline is July 1.

"Certain synergies between BWIA and LIAT ought to be actualised and efforts will be made very shortly to have those actualised in the short term," he said.

BWIA has a 28 per cent shareholding in LIAT while the governments of Barbados and St. Vincent and the Grenadines have smaller shares.

But the St. Vincent Prime Minister said "the private shareholders are unlikely to be putting up any money" to keep the financially plagued airline operational, notwithstanding, "the substantial reforms" undertaken by LIAT over the past two years.